Legislation to Protect Coloradans From Unfair Debt Collection Practices Clears Senate

DENVER, CO – Legislation that would provide Coloradans with greater protections against harassment and unfair debt collection practices cleared the Senate today.

HB24-1380, sponsored by Senators Lisa Cutter, D-Jefferson County, and Sonya Jaquez Lewis, D-Longmont, would establish new regulatory protections under the Consumer Credit Code that would improve transparency, defend against unfair harassment, and ensure that the owner of the debt be included on any lawsuit against debtors.

“Coloradans struggling with debt deserve protection, but too often they can’t even tell who the owners of their debt are, which makes it harder to pay it off,” Cutter said. “This bill will bolster protections for Coloradans by cracking down on unfair practices and ensuring nobody faces unfair harassment over debt.”

"Consumers need more information and transparency when they are facing debt collection. HB 1380 peels back the curtain of secrecy around who is owed debt payment and who is collecting the debt," Jaquez Lewis said. “We must do more to support Coloradans dealing with debt and help ensure Coloradans are safe from unfair or harmful debt collection practices.”

The bill allows the Attorney General’s Office to establish rules regarding how much debt management service providers may charge consumers, and it requires credit services organizations to register with the Colorado Uniform Consumer Credit Code administrator.

HB24-1380 will now move back to the House for consideration of Senate amendments. Track the bill’s progress HERE.