The Colorado legislature is considering a bill that would extend that state’s Fair Debt Collection Practices Act for another 11 years, avoiding the expiration of the law, which is set to occur on July 1, 2017.
A hearing on the proposed legislation has been scheduled for next Monday, April 3.
The bill would also:
- Define what is expected of a collection agency that purchases, sells, or attempts to collect on a purchased debt;
- Clarify that when a collection agency attempts to collect on a debt, the Act applies, by removing language from the definition of “debt”;
- Clarify that the statute of limitations for private actions and actions by the administrator of the Act is 4 years;
- Repeal the collection agency board; and
- Allow consumers who have monetary judgments against a collection agency to access surety bond funds
The bill would also set the statute of limitations on debts at four years, if enacted.
When selling debts, companies would have to:
- Include in the transaction all relevant documentation, as determined by rule of the administrator, concerning the original transaction and the – creditor verifying the debt;
- If a debt is under dispute and being sold, include documentation that the debt is under dispute and that the consumer may not be contacted unless verification of the debt is documented;
- Not sell a retired debt as an account receivable.
