Colorado Commercial Collection LAWS
Colorado’s statute of limitation and debt collection laws were developed to regulate how creditors and debt collectors file lawsuits, collect debt, and other consumer protection factors. This page is meant to provide you with informative economic data and collection laws in Colorado, including: state debt, state spending, statute of limitations, interest rates, collection agency bond/license data, and more.
State spending in 2015 was $33 billion, with state funds at $24 billion, federal funds of $8.7 billion, and per capita spending at more than $6,000 (BallotPedia.org). According to SmartAsset.com, Colorado debt per capita in 2016-2017 has been $62,200. Almost 7% of the total debt is automobile debt, which is the second-highest rate in the top 10 U.S. states. This makes the debt-to-income ration 1.96. Based on this data, it’s understandable that the state credit rating has been an AA for the past 7 years (AAA is the highest and BBB is the lowest). (BallotPedia.org)
The Fair Debt Collection Act works in favor of Colorado debtors, like it does in many other locations in the United States. Colorado has also developed a Uniform Consumer Credit Code, which prohibits extortionate and unconscionable debt collection practices by creditors. If creditors happen to violate Colorado’s Uniform Consumer Credit Code, the state’s attorney general’s office can bring a civil action against the creditor to stop the creditor’s debt collection practices (Nolo.com). If a debt collection lawsuit makes it to court, attorneys are not required to receive a collection agency license, but will have to comply with provisions set in place by the Colorado Fair Debt Collection Practices Act.
Check Laws by Cities in Colorado
SUMMARY OF COLORADO COLLECTION LAWS*
INTEREST RATE
- Legal: 8%
- Judgment 8% (or higher if specified in contract or note)
STATUTE OF LIMITATIONS (IN YEARS)
- Open Acct: 6
- Written Contract: 6 (signed promissory note)
- Written Contract Goods Services: 3
- Domestic Judgment District Court: 20 (renewable every 20)
- County Court: 6 (renewable every 6)
- Foreign Judgment: 6
BAD CHECK LAWS (CIVIL PENALTY)
Treble Damages & Reasonable Fees
GENERAL GARNISHMENT EXEMPTIONS
See federal law.
COLLECTION AGENCY BOND & LICENSE
Bond: $10,000 – 20,000 – License: Yes – Fee: Determined by collection agency board
* These are not comprehensive statutes and therefore PSICollect.com and Prestige Services, Inc. disclaims any liability resulting from reliance by any party upon the legality and accuracy of the contents thereof.
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