COLORADO AMENDS COLLECTION AGENCY BOARD RULES EFFECTIVE NOVEMBER 1, 2008
The Colorado Collection Agency Board Rules generally regulate collection agencies and debt collectors whether or not such entities are exempt from licensing under the Colorado Fair Debt Collection Practices Act (“CFDCPA”). The Rules do limit certain provisions, however, to licensees or license applicants under the CFDCPA. The Rules were amended to, among other things:
- Remove collection manager competency examination requirements;
- Provide that collection agency licenses expire every July 1 unless renewed;
- Require a collection agency to disclose the interest rate on a consumer’s account along with other information in response to a consumer’s written request for an account statement;
- Increase from 5 days to 10 days the time period that a collection agency has in order to respond to a request for a payment or settlement receipt;
- Require a collection agency to maintain records of certain communications with consumers, attorneys or representatives, employers, consumer reporting agencies and persons contacted to obtain location information;
- Require a licensee, upon request of a consumer or person contacted for location information, to provide the licensee’s principal place of business, mailing address, toll-free telephone number and facsimile number;
- Require a licensee to comply with applicable state unclaimed property laws if collecting payment for a client that cannot be located;
- Require a licensee to maintain consumer records that include, among other things, the interest rate on the consumer’s account; and
- Require a licensee to disclose to its clients at the time the licensee initially accepts accounts for collection the fact that the licensee may retain accounts in the process of collection.
The majority of amendments described above take effect November 1, 2008; however, the requirement to disclose information on retaining accounts in the process of collection does not take effect until May 1, 2009.
Contact us for more information on the Rules and the CFDCPA.
- Mike Tomkies and Charles Gall