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Regulation of Debt-Related Services

Concerning measures to increase consumer protections in transactions with debt-related services.
2024 Regular Session
Business & Economic Development
Courts & Judicial
Financial Services & Commerce
Bill Summary

The act prohibits a debt collector or collection agency that is not a creditor or debt buyer from being the named plaintiff in a legal action or taking any legal action on a debt against a consumer unless the debt collector or collection agency:

  • Ensures that the name of the original creditor or assignor and the name of the debt collector or collection agency are included in the case of the caption of the complaint, in that order; and
  • Has a complete and effective assignment, including complete settlement authority and authority to resolve the litigation.

The act requires credit services organizations to file notification with and pay an annual notification fee to the administrator of the uniform consumer credit code (administrator) within 30 days after commencing business in Colorado and, thereafter, on or before July 1 of each year. The state treasurer shall credit the annual notification fee to the consumer credit unit cash fund.

The administrator may order a person to cease and desist from engaging in violations of the "Colorado Credit Services Organization Act" (CCSOA). An order issued by the administrator may require the person to pay to a buyer a refund of any unlawful charges that have been charged to the buyer and to pay an administrative penalty of up to $1,500 per violation. A person aggrieved by an order of the administrator may seek judicial review of the order in the Colorado court of appeals.

The act clarifies that a plan that a debt management services provider prepares for an individual that requires the individual to make regular, periodic payments must meet the definition of "plan" in the "Uniform Debt-Management Services Act".

The act also clarifies that if a debt management services provider utilizes the internet or other electronic means to meet specific compliance requirements, including disclosures, reporting requirements, and record-keeping requirements, the provider must obtain a consumer's consent at the time of satisfying the requirements.

The act repeals provisions outlining the fees a debt management services provider may charge and requires the administrator to adopt rules specifying the nature and amount of permitted fees. The rules must not unduly limit consumer access to debt management services programs based on available state and national data.

APPROVED by Governor June 6, 2024


(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details