On June 6, the Governor of Colorado signed into law HB 1380 (the “Act”) which revised the state’s consumer protection laws related to debt collection, credit services organizations, and debt management service providers. Key provisions of the law included:

  • Debt collectors must now include their name and the original creditor’s name in legal actions against consumers and possess full authority to settle the debt.
  • Credit services organizations will be required to provide the state administrator with essential business information (including name and address) and pay an annual notification fee.
  • The state administrator can issue cease-and-desist orders and impose penalties of up to $1,500 per violation of the Code.
  • Debt-management service providers cannot provide their services to consumers unless they have prepared a debt management plan for the individual that, among other things, lists all the creditors that the service provider expects to participate, and not to participate, in the plan, as well as those that it expects to participate but will not grant concessions to the consumer.
  • Providing the state administrator the ability to adopt rules regarding debt settlement service fees by March 1, 2025, provided the rules do not “unduly limit consumer access to debt management services programs based on available state and national data.”

The Act’s amendments will go into effect 91 days following final adjournment of the General Assembly, subject to approval by Colorado voters if a referendum would be filed.


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