Debt Collection Laws in Colorado: Your Rights & Protections

Finding a debt collection notice in your mailbox ruins your day. Nobody wants that surprise among the bills and magazines.

You can’t stop debt collectors from buying old debts from creditors. But you have powerful rights that protect you from their abusive tactics.

Colorado offers strong consumer protections against aggressive collection agencies. You need to understand these laws to defend yourself effectively.

Colorado Protects You with Strong State Laws

The federal Fair Debt Collection Practices Act (FDCPA) sets baseline protections for all Americans. But Colorado residents get extra protection under the Colorado Fair Debt Collection Practices Act (CFDCPA).

Under C.R.S.A. § 5-16-105, debt collectors cannot contact you before 8 a.m. or after 9 p.m. If you hire an attorney, all communication must go through your lawyer.

Collection agencies must stop calling your workplace if your employer requests it. They cannot discuss your debt with friends, family, or coworkers except to confirm your location.

Harassment and Abuse Are Strictly Prohibited

C.R.S.A. § 5-16-106 bans debt collectors from harassing you. Collection agencies cannot take these actions:

• Threaten violence to force payment
• Threaten to destroy your reputation
• Use profane or abusive language
• Call repeatedly to harass you into paying
• Fail to identify themselves within 60 seconds of contact

Deceptive Practices Violate Colorado Law

C.R.S.A. § 5-16-107 protects you from misleading collection tactics. Debt collectors cannot use these deceptive practices:

• Claim they work for the government or a government agency
• Misstate the amount you owe
• Lie about whether the debt is time-barred
• Pretend to be attorneys when they aren’t
• Threaten to seize assets they have no legal right to take
• Claim you’re committing a crime by not paying

Unfair Collection Tactics Are Illegal

C.R.S.A. § 5-16-108 bans unfair practices by collection agencies. Collectors cannot:

• Deposit postdated checks before the written date
• Threaten to take property they have no legal right to
• Use postcards to communicate about your debt
• Report negative information to credit bureaus within 30 days of first contact

Request Debt Validation Within 30 Days

Colorado law requires debt collectors to send you written information within five days of first contact. Under C.R.S.A. § 5-16-109, they must include:

• The total amount you allegedly owe
• The original creditor’s name
• A statement that you can dispute the debt within 30 days
• A notice that you can request proof of the debt

If you request debt validation and the collector fails to provide it, they must stop collection efforts. You should always request validation when a collector contacts you about an unfamiliar debt.

Not disputing a debt doesn’t mean you admit you owe it. You still have the right to challenge the debt later, even in court.

When dealing with debt lawsuits in Colorado, our partner Solo helps you respond properly and negotiate settlements before your court date.

Violations Carry Serious Penalties

C.R.S.A. § 5-6-113 allows you to sue collection agencies that violate the CFDCPA. You can recover actual damages plus up to $1,000 per violation.

Courts may also award attorney’s fees if you win your case. However, you cannot collect damages under both the CFDCPA and FDCPA for the same violation.

Example: Trisha receives a collection notice from Sandy Debts for a $750 medical bill. She requests debt validation, but Sandy Debts ignores her request. The agency continues calling at all hours, waking her from sleep. Trisha sues under the CFDCPA and proves 19 violations. The judge awards her $10,000 in damages plus attorney’s fees. Sandy Debts faces an additional $19,000 in fines.

File Complaints Against Abusive Collectors

You have multiple options when collectors violate your rights. File complaints with the Colorado Attorney General and the Federal Trade Commission.

These agencies investigate consumer complaints and can take enforcement action. Your complaint helps protect other consumers from the same abusive tactics.

Document every interaction with debt collectors. Keep records of calls, letters, and any harassment you experience.

Respond to Colorado Debt Lawsuits Quickly

You have only 21 days to respond to a debt collection lawsuit in Colorado. Missing this deadline results in an automatic default judgment against you.

A default judgment gives collectors power to garnish your wages and freeze your bank accounts. They may also seize your property to satisfy the debt.

You must file a written Answer to the lawsuit. Your Answer should respond to each claim and assert your legal defenses.

Common defenses include the statute of limitations, lack of documentation, and incorrect debt amounts. You may also challenge whether the collector has legal standing to sue.

Our partner Solo makes it simple to draft and file your Answer in minutes. You get an attorney-reviewed document customized to your specific case.

Know the Colorado Statute of Limitations

Colorado law limits how long collectors can sue you for different debt types. After the statute of limitations expires, the debt becomes time-barred.

You can still be sued for time-barred debt. But you have a strong defense if you raise the statute of limitations in your Answer.

Never make payments on time-barred debt without consulting legal advice first. A single payment can restart the statute of limitations clock.

Negotiate Settlements Before Court

Settling debt before your court date saves time and money. Many collectors accept less than the full amount to avoid court costs.

Start negotiations by requesting debt validation. Review all documentation carefully before making any settlement offer.

Get all settlement terms in writing before making payment. The agreement should state that payment satisfies the debt in full.

Avoid giving collectors access to your bank account. Use cashier’s checks or money orders for settlement payments instead.