Managing outstanding financial obligations in Colorado can be a source of worry. Fortunately, Colorado has a legal framework that protects consumers from unfair practices. This guide explores Colorado's debt collection laws and the federal Fair Debt Collection Practices Act (FDCPA) to empower you to navigate these situations with confidence.

The Legal Landscape:

Colorado utilizes a two-pronged approach to debt collection, combining federal and state regulations:

• Federal Fair Debt Collection Practices Act (FDCPA): This federal law applies nationwide, including Colorado. The FDCPA prohibits debt collectors from engaging in deceptive or unfair practices, including:
  • Harassment: Threats, intimidation, or abusive language are strictly forbidden.
  • False or Misleading Information: Debt collectors cannot misrepresent the amount you owe, the legal repercussions of non-payment, or your employment status.
  • Unreasonable Communication: They are restricted from contacting you before 8:00 AM or after 9:00 PM and cannot contact you repeatedly or continuously.
  • Debt Verification: Upon request, debt collectors must provide written verification of the debt details, including the original creditor and a breakdown of charges.
• Colorado Fair Debt Collection Practices Act (CFDCPA): Colorado mirrors many FDCPA provisions while adding specific protections:
  • Debt Collector Licensing: Debt collection agencies operating in Colorado must be licensed by the Colorado Department of Regulatory Agencies (DORA) (https://www.dora.colorado.gov/).
  • Cease and Desist: If a debt collector violates your rights, a written "cease and desist" letter demanding they stop contacting you directly holds legal weight in Colorado.
  • Additional Communication Restrictions: The CFDCPA places stricter limitations on the frequency and content of communication compared to the FDCPA.

Protecting Yourself:

If a debt collector in Colorado violates your rights:

• Gather Evidence: Document any harassing calls, emails, or letters from the debt collector.
• Report Violations: You can file a complaint with the Colorado Attorney General's Office (https://coag.gov/) regarding state law violations and the Federal Trade Commission (FTC) (https://reportfraud.ftc.gov/) for FDCPA violations.

Colorado-Specific Considerations:

• Statute of Limitations: In Colorado, creditors generally have three years to sue you on a written contract debt (like a credit card) and three years for an open account debt (like medical bills). Knowing this timeframe can help you determine your approach. (https://leg.colorado.gov/agencies/office-legislative-legal-services/colorado-revised-statutes)
• Wage Garnishment: Creditors in Colorado can garnish a portion of your wages to collect a debt, but exemptions exist to protect essential living expenses. (https://leg.colorado.gov/agencies/office-legislative-legal-services/colorado-revised-statutes)

Beyond Legal Protection:

While legal knowledge is essential, tackling the debt itself is crucial:

• Debt Validation: Before making payments, request written verification of the debt to ensure accuracy.
• Debt Negotiation: Contact the original creditor directly to negotiate a payment plan or debt settlement.
• Credit Counseling: Non-profit credit counseling agencies offer free or low-cost financial counseling and debt management plans.
• Bankruptcy: In extreme cases, bankruptcy may be a last resort option. Consider consulting a bankruptcy attorney to understand the implications.

Important Resources:

• The Colorado Attorney General's Office Consumer Protection Unit provides helpful resources (https://coag.gov/).
• The National Foundation for Credit Counseling (https://www.nfcc.org/) connects consumers with reputable non-profit credit counseling agencies in Colorado.

Remember: Knowledge is power. By understanding Colorado's debt collection laws and exploring your options, you can approach debt collection with greater control and work towards financial well-being.