Aug. 25 meeting will focus on amendments and clarifications to the Colorado Fair Debt Collection Practices Act.
8/17/2020 13:00
Colorado’s administrator of the Colorado Fair Debt Collection Practices Act (CFDCPA) is hosting a virtual meeting on rulemaking under the CFDCPA at 2 p.m. MDT, Tuesday, Aug. 25.
The administrator is interested in amending and clarifying her rules under the CFDCPA, and is soliciting topics for rulemaking from interested parties, according to the meeting notice.
Rules under the CFDCPA apply to all collection agencies and debt collectors, whether they are exempt from licensing under the law, unless the rule is limited to “licensees” or “applicants.” The words “client” and “creditor” have the same meaning throughout these rules.
Colorado recently amended the CFDCPA with a requirement to include an update to the website for the Colorado attorney general’s informational page about the law in the first written notice sent to consumers about a debt, ACA International previously reported. The change was passed as part of Colorado House Bill 20-1402 in June and took effect July 1, 2020.
Proposed changes (emphasis added to show the changes) to the CFDCPA slated for discussion at the Aug. 25 meeting include:
Letters of Admonition
Any letter of admonition issued against a licensee or collections manager shall be mailed by first class certified mail or emailed to the compliance contact provided in the licensee’s most recent renewal application.
Termination of License
A licensee who does not own the debt may not purchase sell the right to collect client accounts from to another licensee, but only the right for the first licensee to refer solicit their reassignment from the client to the second licensee.
Address Changes
A collection agency’s obligation to provide written notice to the administrator within thirty days after an address change pursuant to section 5-16-122(1)(a), C.R.S. applies to both the local Colorado office and the principal place of business printed on the collection agency’s license, and may be provided by facsimile, electronic mail, U.S. mail, or any other delivery method.
Costs of Collection
No licensee shall advise, suggest, or request that a client add collection costs to any existing debt unless such costs are specifically authorized by statute or by the contract, agreement, note, or other instrument creating the debt and that are not otherwise prohibited by law.
Overpayment
If a collection agency has received final payment of any debt which overpays the debt by more than $5 $10, it shall issue a refund to the consumer of the amount of the overpayment within 35 days after the end of the month in which the payment was received unless otherwise required by law or as directed by court order.
Cash Payments
A collection agency shall provide the consumer with a receipt for all payments made in cash or by any other means which does not in and of itself provide evidence of payment. The receipt shall be provided to the consumer within five seven business days after the payment is received. A “business day” does not include Sundays or legal holidays.
Account Statements
Subject to the payment record retention requirements of Rule 3.03, a collection agency shall provide the consumer with a written statement of the consumer’s payments for as long as the collection agency has had assignment of the debt within 10 14 days after the consumer makes a written request. The statement shall include the consumer’s name, the creditor’s name, the amounts paid, the dates on which payments were received, the allocation of each payment to, as applicable, principal, interest, court costs, attorney fees, other costs, the interest rate, and the current balance due. Account statements shall be provided upon request without charge once during any 12-month period. If additional statements are requested, they may be provided upon payment of a reasonable fee not to exceed $5 $10 per statement.
After a debt has been paid or settled in full, a collection agency shall provide a written statement or receipt that the debt has been paid or settled in full within ten 14 business days after request by the consumer. Such a statement shall be provided free of charge. A “business day” does not include Sundays or legal holidays.
Consumer Communication Records
Collection agencies shall maintain accurate summaries or records of all communication in connection with the collection or attempted collection of a debt with consumers, a consumer’s attorney or representative, the consumer’s employer, consumer reporting agencies, and persons contacted to obtain location information, for two years following the date of the communication. Call recordings must be retained for two years, in an accessible format upon request by the administrator. Where summaries and records are both kept, both must be accurate.
Payment Authorization by Telephone
If a consumer denies or disputes the purported oral payment authorization, the collection agency must refund the payment amount within five seven business days of receipt of good funds. A “business day” does not include Sundays or legal holidays.
Disclosure of Contact Information
Upon the request of a consumer or person contacted for location information, a licensee shall provide the address of its principal place of business and mailing address, its toll-free telephone number, and the address and telephone number of its local Colorado office, and, if applicable, its facsimile number.
Creditor Protections – Trust Accounts
If any of the trust account information in a licensee's license or renewal application changes, the licensee must file a new bank authorization form within 30 35 days of the date of the change.
Unidentified Accounts
If a licensee receives a consumer payment but is unable to identify the client account on whose behalf the payment is made, the licensee shall return the entire payment to the consumer within 30 35 days after the end of the month in which the payment was received.
The meeting will be held via Zoom and call-in options are available.
The administrator intends to hold a rulemaking hearing following publication of a proposed rule. A final draft of any proposed rules will be published with the Colorado secretary of state at least 20 days before the rulemaking hearing.
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.