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First Regular Session

Seventy-first General Assembly

STATE OF COLORADO

INTRODUCED

LLS NO. 17-0298.01 Kristen Forrestal x4217

SENATE BILL 17-216

Senate Committees House Committees

Judiciary

A BILL FOR AN ACT

ONCERNING CONTINUATION OF THE REGULATION OF COLLECTION101

AGENCIES UNDER THE "COLORADO FAIR DEBT COLLECTION102

RACTICES ACT", AND, IN CONNECTION THEREWITH,103

IMPLEMENTING THE RECOMMENDATIONS OF THE 2016 SUNSET104

REPORT OF THE DEPARTMENT OF REGULATORY AGENCIES.105

Bill Summary

(Note: This summary applies to this bill as introduced and does

not reflect any amendments that may be subsequently adopted. If this bill

passes third reading in the house of introduction, a bill summary that

applies to the reengrossed version of this bill will be available at

http://leg.colorado.gov/

Sunset Process - Senate Judiciary Committee. The bill

implements the recommendations of the sunset review and report on the

SENATE SPONSORSHIP

Gardner,

HOUSE SPONSORSHIP

Becker K. and Lontine,

Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters indicate new material to be added to existing statute.

Dashes through the words indicate deletions from existing statute.

continuation of the "Colorado Fair Debt Collection Practices Act" (Act)

by:

! Continuing the Act through 2028;

! Defining what is expected of a collection agency that

purchases, sells, or attempts to collect on a purchased debt;

! Clarifying that when a collection agency attempts to collect

on a debt, the Act applies, by removing language from the

definition of "debt";

! Clarifying that the statute of limitations for private actions

and actions by the administrator of the Act is 4 years;

! Repealing the collection agency board; and

! Allowing consumers who have monetary judgments against

a collection agency to access surety bond funds.

Be it enacted by the General Assembly of the State of Colorado:1

SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2

(12)(a)(VII); and add (29) as follows:3

24-34-104. General assembly review of regulatory agencies4

and functions for repeal, continuation, or reestablishment - legislative5

declaration - repeal. (12) (a) The following agencies, functions, or both,6

will repeal on July 1, 2017:7

(VII) The regulation of collection agencies in accordance with

article 14 of title 12, C.R.S.;

(29) (a) T

HE FOLLOWING AGENCIES, FUNCTIONS, OR BOTH, ARE10

SCHEDULED FOR REPEAL ON SEPTEMBER 1, 2028:11

(I) T

HE ADMINISTRATION OF THE "COLORADO FAIR DEBT12

OLLECTION PRACTICES ACT" BY THE ADMINISTRATOR OF THE "UNIFORM13

ONSUMER CREDIT CODE", ARTICLES 1 TO 9 OF TITLE 5, IN ACCORDANCE14

WITH ARTICLE 14 OF TITLE 12.15

(b) T

HIS SUBSECTION (29) IS REPEALED, EFFECTIVE SEPTEMBER 1,16

2030.17

SECTION 2. In Colorado Revised Statutes, amend 12-14-137 as18

SB17-216-2-

follows:1

12-14-137. Repeal of article. This article

ARTICLE 14 is repealed,2

effective July 1, 2017

SEPTEMBER 1, 2028. BEFORE ITS REPEAL, THIS3

ARTICLE 14 IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH SECTION4

24-34-104.5

SECTION 3. In Colorado Revised Statutes, 12-14-103, amend6

the introductory portion and (6)(a); repeal (1.5); and add (9.7) as7

follows:8

12-14-103. Definitions. As used in this article

ARTICLE 14, unless9

the context otherwise requires:10

(1.5) "Board" means the collection agency board created in

section 12-14-116.

(6) (a) "Debt" means any obligation or alleged obligation of a13

consumer to pay money, arising out of a transaction,

whether or not such14

THE obligation has been reduced to judgment.15

(9.7) "R

ETIRED DEBT" MEANS DEBT AS TO WHICH ANY OF THE16

FOLLOWING IS TRUE:17

(a) I

T HAS BEEN DISCHARGED IN A CHAPTER 7 BANKRUPTCY CASE18

WITH NO ASSETS FOR DISTRIBUTION TO CREDITORS;19

(b) T

HE LICENSEE HAS BEEN INFORMED OR HAS KNOWLEDGE THAT20

THE CONSUMER RESPONSIBLE FOR THE DEBT IS DECEASED;21

T HAS BEEN SETTLED;22

(d) M

ORE THAN FOUR YEARS HAVE PASSED SINCE THE DATE OF THE23

CONSUMER'S LAST PAYMENT; OR24

(e) I

T IS BEYOND THE DATE OF OBSOLESCENCE UNDER SECTION25

1681c

OF THE FEDERAL "FAIR CREDIT REPORTING ACT", 15 U.S.C. SEC.26

1681

ET SEQ., AS AMENDED.27

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SECTION 4. In Colorado Revised Statutes, 12-14-113, amend1

(3) and (4) as follows:2

12-14-113. Civil liability. (3) A debt collector, private child3

support collector, as defined in section 12-14.1-102 (9), or collection4

agency may not be held liable in any action brought pursuant to the

provisions of this article

THIS SECTION if the debt collector or collection6

agency shows by a preponderance of evidence that the violation was not7

intentional or grossly negligent and which

THE violation resulted from a8

bona fide error, notwithstanding the maintenance of procedures9

reasonably adapted to avoid any such error.10

(4) An

A PRIVATE action to enforce any liability created by the11

provisions of this article may

THIS SECTION MUST be brought in any court12

of competent jurisdiction within one year from the date on which the13

violation occurs.14

SECTION 5. In Colorado Revised Statutes, repeal 12-14-116.15

SECTION 6. In Colorado Revised Statutes, 12-14-117, repeal (1 )16

as follows:17

12-14-117. Powers and duties of the administrator. (1) Any

provision of this article to the contrary notwithstanding, the board, created

by section 12-14-116, is under the supervision and control of the

administrator, who may exercise any of the powers granted to the board.

SECTION 7. In Colorado Revised Statutes, 12-14-123, add22

(1)(g), (1)(h), and (1)(i) as follows:23

12-14-123. Duties of collection agencies. (1) A licensee shall:24

(g) W

HEN A DEBT IS SOLD, INCLUDE IN THE TRANSACTION ALL25

RELEVANT DOCUMENTATION, AS DETERMINED BY RULE OF THE26

ADMINISTRATOR, CONCERNING THE ORIGINAL TRANSACTION AND THE27

SB17-216

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CREDITOR VERIFYING THE DEBT;1

(h) I

F A DEBT IS UNDER DISPUTE AND BEING SOLD, INCLUDE2

DOCUMENTATION THAT THE DEBT IS UNDER DISPUTE AND THAT THE3

CONSUMER MAY NOT BE CONTACTED UNLESS VERIFICATION OF THE DEBT4

IS DOCUMENTED;5

(i) N

OT SELL A RETIRED DEBT AS AN ACCOUNT RECEIVABLE.6

SECTION 8. In Colorado Revised Statutes, 12-14-124, amend7

(4) as follows:8

12-14-124. Bond. (4) (a) If a receiver has been appointed by any9

court of competent jurisdiction in the state of Colorado to take charge of10

the assets of any licensee, such

THE receiver, upon the written consent of11

the administrator, may demand and receive payment on the bond from the12

surety and, upon order of the court, may bring suit upon the bond in the13

name of such

THE receiver, without joining the administrator as a party to14

the action.15

(b) (I) I

N A PRIVATE ACTION PURSUANT TO SECTION 12-14-113 (4),16

THE CONSUMER MAY BRING SUIT UPON THE BOND IN THE NAME OF THE17

CONSUMER.18

(II) A

N ORDER FOR RESTITUTION FOR A CONSUMER PURSUANT TO19

SECTION 12-14-135 MAY INCLUDE RESTITUTION MADE THROUGH THE20

BOND.21

SECTION 9. In Colorado Revised Statutes, 12-14-128, amend22

(1) introductory portion; and add (1)(d) as follows:23

12-14-128. Unlawful acts. (1) In addition to the unlawful acts24

specified in sections 12-14-112 and 12-14-115, it is unlawful and a25

violation of this article

ARTICLE 14 for any person:26

(d) T

O CONTACT A DEBTOR AFTER THE FOUR-YEAR STATUTE OF27

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LIMITATIONS HAS RUN AFTER THE LAST PAYMENT WAS MADE ON A DEBT.1

SECTION 10. In Colorado Revised Statutes, add 12-14-128.5 as2

follows:3

12-14-128.5. Statute of limitations - actions by administrator.4

N ACTION OR PROCEEDING BROUGHT BY THE ADMINISTRATOR PURSUANT5

TO THIS ARTICLE 14 OR PURSUANT TO ANY RULE ISSUED BY THE6

ADMINISTRATOR UNDER THIS ARTICLE 14 MUST BE BROUGHT WITHIN FOUR7

YEARS AFTER THE DATE ON WHICH THE VIOLATION OCCURRED.8

SECTION 11. In Colorado Revised Statutes, 12-14-130, amend9

(12) as follows:10

12-14-130. Complaint - investigations - powers of11

administrator - sanctions. (12) Members of the collection agency

board,

The administrator, expert witnesses, and consultants shall be ARE13

immune from civil suit when they perform any duties in connection with14

any proceedings authorized under this section in good faith. Any person15

who files a complaint in good faith under this section shall be

IS immune16

from civil suit.17

SECTION 12. Safety clause. The general assembly hereby finds,18

determines, and declares that this act is necessary for the immediate19

preservation of the public peace, health, and safety.20

SB17-216

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