Colorado Debt Collection Laws: Know Your Rights in 2024

Colorado has two powerful state laws protecting consumers from aggressive debt collectors. The Colorado Fair Debt Collection Practices Act (CFDCPA) shields you from third-party collector harassment. The Colorado Uniform Consumer Credit Code (UCCC) ensures fair treatment by lenders and creditors.

You deserve to know what debt collectors can and cannot do.

What Are the Debt Collection Laws in Colorado?

Debt collectors must follow federal and state laws when pursuing your debt. Colorado residents enjoy protection from three main consumer laws:

• The federal Fair Debt Collection Practices Act (FDCPA)
• The Colorado Fair Debt Collection Practices Act (CFDCPA)
• The Colorado Uniform Consumer Credit Code (Colorado UCCC)

Your Rights Under the Federal Fair Debt Collection Practices Act (FDCPA)

The FDCPA provides sweeping consumer protection across the United States. Under this federal law, you have specific rights. Third-party debt collectors have clear obligations.

Debt collectors must:

• Send you written validation of the debt within five days of first contact
• Stop contacting you if you request it in writing
• Only contact you between 8 a.m. and 9 p.m.
• Avoid calling your workplace if your employer prohibits such calls

Debt collectors cannot:

• Harass, threaten, or abuse you
• Lie about the amount you owe or their identity
• Threaten actions they cannot legally take
• Discuss your debt with friends, family, or coworkers
• Continue calling after you dispute the debt in writing

Your Rights Under the Colorado Fair Debt Collection Practices Act (CFDCPA)

The Colorado FDCPA mirrors federal law but adds extra consumer protections. Both laws apply to third-party debt collectors, collection agencies, and debt buyers. Neither applies to original creditors.

Colorado’s state law provides more protection than federal law. The CFDCPA requires debt collection agencies operating in Colorado to hold a state license. Collectors must also maintain a bond covering what they owe creditors.

The CFDCPA prohibits unfair or unconscionable collection methods. Examples of banned practices include:

• Collecting more than the creditor agreement allows
• Depositing or threatening to deposit a postdated check early
• Taking or threatening to seize your property without legal authority

Your Rights Under the Colorado Uniform Consumer Credit Code (Colorado UCCC)

The Colorado UCCC ensures fair credit deals for lenders and borrowers. It requires clear, honest information about credit terms. The law stops unfair lending practices and protects consumer rights.

One key difference separates the UCCC from the FDCPA. The UCCC applies to original lenders and creditors. The FDCPA only covers third-party debt collectors.

Under the UCCC, creditors cannot engage in unfair debt collection practices like:

• Threatening or using physical violence
• Harassing you with frequent calls or calling at unusual hours
• Pretending to represent government agencies
• Lying about legal consequences of unpaid debts
• Threatening to damage your reputation by contacting friends or family
• Communicating with your employer about your finances (unless they have a court order for wage garnishment)

What Transactions Are Covered Under the UCCC?

The UCCC applies to lenders, creditors, finance companies, and payday lenders. Covered transactions include:

• Payday loans
• Car loans
• Credit cards
• Signature loans

The UCCC doesn’t cover all consumer transactions. First-home mortgages and refinance loans fall outside the law. But lenders must still disclose credit costs and offer specific remedies for UCCC violations.

What Can You Do if a Debt Collector Breaks the Law?

You have two main options: filing a complaint or suing. You can pursue both routes simultaneously. Complaints flag repeat offenders to enforcement agencies. Lawsuits may help you recover lost wages or get compensation.

Here are your options:

• File a complaint with the Colorado Attorney General’s Office: If a Colorado debt collector violates the CFDCPA or a creditor violates the UCCC, file a complaint with the Colorado Attorney General’s Office. The attorney general investigates complaints and takes action against violators.
• File a complaint with the Consumer Financial Protection Bureau (CFPB): The CFPB protects consumers from unfair, deceptive, or abusive collectors. The agency takes action against companies violating federal laws.
• Sue the debt collector: You can file a lawsuit within one year of the violation. If you win, you may recover actual damages, statutory damages up to $1,000, attorney fees, and court costs. Consider contacting our partner Solo for help responding to debt lawsuits and negotiating settlements.

Keep written records of all phone conversations with creditors or collectors. Save documents regarding the debt or collection efforts. If you get sued, this information supports any defenses you want to raise.

What Is the Statute of Limitations for Debt Collection?

Statutes of limitations limit how long lenders and collectors can sue you. In Colorado, the statute of limitations for most consumer debt is six years. This includes credit cards, medical debt, and mortgages. For car loans, it’s four years.

Why does this matter? Once debt exceeds the statute of limitations, you have a strong defense. The debt becomes time-barred. Collectors shouldn’t sue you for old debts, but they sometimes try anyway.

You must raise the statute of limitations as a defense in court. If a collector sues you for time-barred debt, our partner Solo can help you respond appropriately and assert this defense.

What Can Debt Collectors Do to Collect Debt?

Colorado law limits debt collector actions significantly. But regulations don’t stop collectors from contacting you about nonpayment. They can still take you to court for unpaid credit card debt or medical bills.

If you get sued by a debt collector, respond immediately. Show up to court. Ignoring the court summons means you’ll likely lose by default. Non-response tells the court you won’t defend yourself.

Consequences of a Debt Lawsuit

Losing a debt lawsuit has serious consequences. Once the collector wins, they can get a court order for direct money extraction. They can pursue wage garnishment or bank levy. If you own property, they can place a lien on it.

For car loans, creditors don’t need court orders to repossess vehicles.

Most people fall behind on debts due to financial struggles, not choice. Hard decisions about priorities become necessary. If you’re in this position, explore your debt relief options now.

Debt Relief Options You Should Know About

Debt collectors want you to believe immediate full payment is your only option. That’s not true. You have several paths forward.

Start with a free credit counseling session. Credit counselors help everyday individuals control debt and create repayment plans. They may suggest debt management plans, debt consolidation, or bankruptcy. Our partner Cambridge Credit Counseling offers free consultations to help you explore all options.

Professional guidance can help you regain financial control and build a stronger future.