The report of Colorado's sunset review of its Fair Debt Collection Practices Act have been published.

Section 24-34-104(5)(a), Colorado Revised Statutes, directs the Department of Regulatory Agencies to:

  • Conduct an analysis of the performance of each division, board, or agency or each function scheduled for termination; and
  • Submit a report and supporting materials to the office of legislative legal services no later than October 15 of the year preceding the date established for termination.

The main question being asked in the sunset review of Colorado's FDCPA is: "Is there a need for the regulation provided under Article 14 of Title 12, C.R.S."


Per the report, the review committee is arguing that Colorado's FDCPA should be continued for 11 more years, until the next sunset review in 2028. "The licensing of collection agencies provides financial protections for clients of collection agencies." In this case, Colorado is defining "client" as "consumers." 

The other recommendations are:

      • Define what is expected of a individual who purchases, sells, or attempts to collect on purchased debt.
      • Repeal the phrase "arising out of a transaction" from CFDCPA's definition of "debt."
      • Clarify that the statute of limitations in CFDCPA enforcement is four years.
      • Sunset the Collection Agency Board
      • Allow consumers who have a monetary judgment against a collection agency, access to surety bond funds.
      • The Administrator should track license disqualifications based on criminal history.

The full report can be downloaded here.

insideARM Perspective

This is part of a recent ongoing trend involving local review of various laws affecting the ARM industry.



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