Colorado Fair Debt Collection Practices Act Law
The Colorado Fair Debt Collection Practices Act (CFDCPA) applies to the following collection agencies or debt collectors:
- Located within this state;
- Outside this state and collects or attempts to collect from consumers who reside within this state for a creditor with a place of business located within this state;
- Outside this state and regularly collects or attempts to collect from consumers who reside within this state for a creditor with a place of business located outside this state; or
- Outside this state and solicits or attempts to solicit debts for collection from a creditor with a place of business located within this state;
- Debt/judgment buyers who are now the owners of debts that were in default at the time they acquired ownership of those debts;
- Creditors that collect their own debts using another name which would indicate that a third person is collecting or attempting to collect such debts.
Attorneys engaged in debt collections do not need a collection agency license but must comply with the substantive provisions of the CFDCPA and are subject to the Administratorās enforcement authority.
Collection agencies that collect only commercial, business, investment, and agricultural purpose debts are not subject to the CFDCPA and do not need a collection agency license.
Creditors, defined in section 5-16-103(7), C.R.S., who collect their own debts in their own name are not subject to the law and do not need to be licensed.
Collection Agency License Documents and Information
*The Department of Law Consumer Credit Unit is committed to ensuring that its materials and documents are accessible to all. Should you need any assistance in order to fully access and use the materials and documents published or sent by the Consumer Credit Unit, please contact us at CAR@coag.gov to request an accommodation.
Pursuant to section 5-16-118, C.R.S., “Any person acting as a collection agency must possess a valid license issued by the administrator…” Collection agency license requirements are laid out in section 5-16-119, C.R.S. The application for Collection Agencies is available online via the Licensing portal Login. Please use the Application Information and Checklist in conjunction with completing the online application.
Visit the Licensing portal to login or register an account. If you already have an account, you may reset your password using by clicking Forgot Password? Click Here. If you are a new user, you may register an account by clicking New User? Register Here! Please note, if you are a new user requesting access to an existing company, it may take several days to approve your request.
Once logged in, go to Apply and select the application type for which you wish to apply. Once submitted, the application will be emailed to the signatory for an electronic signature. The application is not considered submitted until electronically signed and sent back.
Financial Responsibility Forms
Financial responsibility requirements are laid out in section 5-16-124, C.R.S. You may refer to this Guidance (PDF)Ā regarding surety bonds containing an electronic seal and electronic signatures. Please note this is not intended as an official interpretation or opinion letter.
Important Renewal Dates
- Renewals open early to mid-May
- Renewal Deadline is July 1st
“Collection agency licenses are valid from the date of issuance to the following July 1. To renew its license, a license must file its completed renewal and fee on or before July 1 each year or its license shall automatically expire,” pursuant to Rule 1.06.
Renewals take place via theĀ Licensing PortalĀ each year.
Collection Agency Licensing Fees
- Investigation Fee: $500
- Initial License Application Fee: $1,500
- Renewal License Application Fee: $1,500
IMPORTANT NOTE: The above license and notification filings (once issued) are valid through each July 1 regardless of the date issued and must be renewed annually. See the above information for important dates for collection agencies.
Although a license expiration date may reflect the prior 7/1, the existing license shall not expire (so long as a renewal is submitted) until the renewal application has been finally acted upon by the agency, pursuant to section 24-4-104(7), C.R.S.
Important Notification of Change Requirements
Pursuant to section 5-16-122(1)(a), C.R.S., Upon any of the following changes, the licensee shall notify the administrator in writing of the change within thirty days after its occurrence:
- Business Address
- Business Name
- Surety Bond
- Collection Manager
No form is needed for notifying our office of the above changes. Please email any changes to: car@coag.gov andĀ indicate the date that the change was made.