Upsolve is a nonprofit that helps you get out of debt with free debt relief tools and education. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card. Get debt help.
In a NutshellCollection agencies are required to follow federal and state laws when trying to collect a debt from you. Fortunately, all states are under the protection of the federal Fair Debt Collection Practices Act (FDCPA). The FDCPA is a debt collection law that protects you from intrusive and predatory collection agency practices such as calling you late at night, cursing at you, and trying to collect a debt you don’t owe. Some states, including Colorado, also have laws that provide additional protections for consumers from debt collectors. Here we’ll discuss the consumer protections available to Colorado residents under the Colorado Fair Debt Collection Practices Act (CFDCPA).
Collection agencies are required to follow federal and state laws when trying to collect a debt from you. Fortunately, all states are under the protection of the federal Fair Debt Collection Practices Act (FDCPA). The FDCPA is a debt collection law that protects you from intrusive and predatory collection agency practices such as calling you late at night, cursing at you, and trying to collect a debt you don’t owe. Some states, including Colorado, also have laws that provide additional protections for consumers from debt collectors.
You have rights that can empower you and help you to control your dealings with debt collectors. You can contact your state's local consumer office to learn more about how to enforce your legal rights. Here we’ll discuss the consumer protections available to Colorado residents under the Colorado Fair Debt Collection Practices Act (CFDCPA).
Under the federal Fair Debt Collection Practices Act (FDCPA), it’s illegal for debt collectors to use unfair practices or harass or deceive people when attempting to collect consumer debts. The FDCPA applies to collection agencies and debt collectors who are attempting to collect consumer debts. Credit card debts, car loans, medical bills, and student loans are all consumer debts. The FDCPA doesn’t apply to original creditors or cover business debts.
If a debt collector violates the FDCPA, the collection agency and the individual debt collector can be sued for damages and legal fees. A lawsuit for violation of the FDCPA must be filed no later than one year after the debt collector’s violation.
What debt collectors aren’t allowed to do under the FDCPA:
What debtor collectors are allowed to do under the FDCPA:
Colorado has passed various laws to protect its residents from abuse and unfair treatment by debt collectors. The Colorado Fair Debt Collection Practices Act (CFDCPA) applies to debt collectors and collection agencies. The CFDCPA doesn’t apply to those collecting their own debts or United States government employees. The CFDCPA gives consumers specific legal rights and regulates the methods that collection agencies can use during debt collection attempts.
In some ways, the CFDCPA provides more legal rights to consumers than the federal FDCPA because it’s more restrictive than the federal law. Here’s how:
The CFDCPA also prohibits the debt collector from using unfair or unconscionable means to collect or attempt to collect a debt. Examples of unfair practices include but are not limited to:
Colorado has a state law called the Uniform Consumer Credit Code (UCCC) that oversees how consumer credit is handled in the state of Colorado. The UCCC is a code of conduct regulating consumer credit transactions. The UCCC requires lenders, creditors, finance companies, and payday lenders to tell consumers about the cost of credit so they can shop around for the best rates. It also sets maximum rates and charges for all types of consumer credit.
Payday loans, car loans, second mortgages, credit cards issued by the state, and signature loans are covered under the UCCC. But the UCCC doesn’t apply to all consumer transactions. First home mortgages and refinance loans aren’t covered by the UCCC, except for requirements that lenders disclose the cost of credit and give consumers certain legal remedies if the UCCC is violated.
While the UCCC hasn’t been adopted nationwide, some states have adopted the UCCC in part or in full with the goal of protecting consumers using credit from deception and fraud. Colorado’s UCCC prohibitions are similar to the federal FDCPA’s prohibitions, but the UCCC also applies to the original consumer lender. The federal FDCPA doesn't apply to the original lender.
Nine states have completely adopted the UCCC: Colorado, Idaho, Indiana, Iowa, Kansas, Maine, Oklahoma, Utah, and Wyoming. South Carolina and Wisconsin have adopted parts of the UCCC.
The Colorado Attorney General’s Office, through the Administrator of the Uniform Consumer Credit Code, investigates complaints about lenders and creditors, licenses non-bank lenders such as finance companies and payday lenders, and takes appropriate disciplinary or legal action when a creditor violates the law. This office cannot give legal advice or represent individual consumers in actions against creditors. Consumers may bring legal action against creditors under the UCCC.
The Colorado UCCC provides extra protections along with the federal FDCPA and applies to original creditors, third-party debt collectors, and debt buyers. Under the UCC debt collection agencies aren’t allowed to take part in unfair and unethical debt collection practices such as: