The extension is part of the state’s efforts related to COVID-19 and protecting consumers from economic hardship.
1/11/2021 12:00
Certain limitations on “extraordinary collection actions” enacted as part of Senate Bill 211 in Colorado are now in effect through Feb. 1, 2021, as part of the state’s plan to protect residents from economic hardship as the COVID-19 pandemic continues.
The limitations were originally set to expire on Nov. 1.
Colorado Gov. Jared Polis signed SB 211 into law in June. The law “prohibits a judgment creditor from initiating or maintaining a new extraordinary collection action, except in accordance with the requirements of SB 211.”
The extension applies to sections four and five of SB 211, which focus on debt collection practices and writs of garnishment.
SB 211 requires the Administrator of the Uniform Credit Code to determine whether an extension is necessary “to preserve and prioritize the resources of state and local agencies or to protect Colorado residents from economic hardship as a result of the disaster emergency caused by COVID-19.”
The administrator reviewed public data on recent and current economic conditions, held a public meeting and collected public comments before issuing the extension.
Comments showed differing views on the effect of SB 211 on collection agencies, according to the administrator’s order for the extension.
ACA’s members and members of Associated Collections Agencies Inc. (Colorado/Wyoming, New Mexico unit) continue to work with consumers by offering hardship programs and reasonable payment plan options to help them resolve their accounts.
The administrator found that extending the requirements on extraordinary collection actions in SB 211 until Feb. 1 will preserve and prioritize the resources of state and local agencies, such as the courts, because of the disaster emergency caused by COVID-19.