co-consumer-debt

Colorado Consumer-Debt Defense

NOT LEGAL ADVICE. This skill provides drafting and analytical support for defending consumer-debt suits. Consult a licensed Colorado attorney about your specific case.

Use this subject-matter bundle when a Colorado consumer has been sued by a debt collector — typically a debt buyer (Midland Credit Management, Portfolio Recovery Associates, Cavalry SPV, LVNV Funding, Unifin, etc.) or a debt collection agency acting for an original creditor.

The Colorado consumer-debt landscape

Colorado has a layered framework regulating debt collection:

Federal layer

• FDCPA (Fair Debt Collection Practices Act), 15 U.S.C. §§ 1692-1692p
• FCRA (Fair Credit Reporting Act), 15 U.S.C. § 1681
• TILA (Truth in Lending Act), 15 U.S.C. § 1601
• Reg F (12 C.F.R. pt. 1006), effective November 30, 2021; CFPB-promulgated regulation interpreting FDCPA
• Reg V (12 C.F.R. pt. 1022), FCRA implementation

Colorado state layer

• Colorado Fair Debt Collection Practices Act (CFDCPA) — formerly C.R.S. art. 16 of title 12, recodified in 2022 at C.R.S. art. 16 of title 5 as part of the Uniform Consumer Credit Code consolidation. The Colorado AG's Collection Agency Board enforces.
• Colorado Consumer Protection Act (CCPA) — C.R.S. art. 1 of title 6. Treble damages plus attorneys' fees on certain claims.
• Uniform Consumer Credit Code (UCCC) — C.R.S. art. 1-9 of title 5. Caps on rates and fees; administered by the Colorado AG.
• Colorado Uniform Commercial Code — C.R.S. art. 1-11 of title 4. Article 9 governs assignments and security interests.

Recodification note: Effective July 1, 2022, the Colorado legislature moved the Colorado FDCPA from Title 12 to Title 5 (HB22-1024 / SB22-013). Many older cases and resources cite the old C.R.S. art. 14 of title 12 numbers. The substantive provisions are largely unchanged but the section numbers are different. When citing, use the current Title 5 sections.

The five fact patterns

Most Colorado consumer-debt-buyer cases fall into one of five fact patterns. The defense strategy varies by pattern.

Pattern 1 — Stale credit-card debt by an out-of-state debt buyer

A debt buyer (e.g., Midland Credit Management, headquartered in California) sues a Colorado consumer in Colorado county court on a credit-card account where the last payment was made 4-6+ years ago.

• SOL: The credit-card account is on the cusp of the 6-year SOL under C.R.S. § 13-80-103.5(1)(a). Verify the date of last payment.
• Chain of title: The debt was originated by Bank of America → sold to a Tier-1 buyer → sold to Tier-2 → sued by Tier-2 or Tier-3. Each transfer requires Article 9 documentation. Defense: request the Bill of Sale, Assignment, and account-level data proving Plaintiff owns this specific account.
• CFDCPA licensure: Under C.R.S. § 5-16-115, a collection agency must be licensed in Colorado to collect consumer debts. Verify on the Colorado AG's collection-agency licensee list. Unlicensed collection = void collection.

Pattern 2 — Debt buyer suing on the original creditor's contract

Same as Pattern 1 but Plaintiff attaches the original creditor's cardholder agreement to the complaint. Defense:

• Standing: Plaintiff is not the original creditor. The cardholder agreement does not establish Plaintiff's standing.
• Article 9: Plaintiff must prove assignment under C.R.S. § 4-9-201 et seq.

Pattern 3 — Collection lawsuit on a medical debt

A collection agency sues for medical debt. Layered considerations:

• NSA (No Surprises Act) — federal law (effective 2022) bars certain billing practices and may render the debt unenforceable.
• HIPAA disclosure — the FDCPA and CFDCPA limit disclosure of health information.
• Colorado-specific medical-debt protections — HB23-1126 (effective 2023) places caps on medical-debt collection actions.

Pattern 4 — Default judgment already entered

Consumer was sued, never properly served, and a default judgment was entered against them. Discovery (often through garnishment notice).

• C.R.C.P. 60(b)(1) — within 182 days, motion to set aside for excusable neglect plus meritorious defense
• C.R.C.P. 60(b)(4) — no time limit if judgment is void (e.g., never served, no jurisdiction)
• Meritorious defense — chain of title, SOL, CFDCPA violations

Pattern 5 — Counterclaim under FDCPA / CCPA / CFDCPA

Consumer was sued; defenses + counterclaims include:

• FDCPA — federal counterclaim for violation of § 1692e (misleading representations), § 1692f (unfair practices), § 1692g (validation notice)
• CFDCPA — Colorado counterclaim under C.R.S. § 5-16-113 (one- year SOL)
• CCPA — Colorado counterclaim with treble damages under C.R.S. § 6-1-113 if a "significant public impact" can be shown

The CFDCPA — Colorado's analog to the FDCPA

The CFDCPA (C.R.S. art. 16 of title 5) parallels the federal FDCPA with Colorado-specific features:

Provision	Federal FDCPA	Colorado CFDCPA
Validation notice	§ 1692g — 30 days	C.R.S. § 5-16-109 — 30 days
Communication restrictions	§ 1692c	C.R.S. § 5-16-105
Harassment	§ 1692d	C.R.S. § 5-16-106
False or misleading representations	§ 1692e	C.R.S. § 5-16-107
Unfair practices	§ 1692f	C.R.S. § 5-16-108
Licensure requirement	NONE — federal law has no licensure	Required — C.R.S. § 5-16-115
Private right of action	§ 1692k	C.R.S. § 5-16-113
Statute of limitations	1 year	1 year
Damages	Up to $1,000 statutory + actual + fees	Up to $1,000 statutory + actual + fees
Class actions	Yes (1% of net worth, capped)	Yes (similar cap)

The licensure requirement is Colorado's main distinctive. Under C.R.S. § 5-16-115, a collection agency must be licensed by the Colorado Administrator of the UCCC (operating through the AG's Collection Agency Board) to collect consumer debts in Colorado. Unlicensed collection is per se a CFDCPA violation and arguably voids the underlying collection attempts.

The CCPA — broader consumer protection

The Colorado Consumer Protection Act, C.R.S. art. 1 of title 6, prohibits deceptive trade practices, including (per C.R.S. § 6-1-105(1)(u)) failing to provide accurate or complete information in a consumer transaction.

CCPA features that matter in debt-collection cases:

• Standing — private right of action under C.R.S. § 6-1-113
• Damages — 3x actual damages or $500 (whichever is greater) under C.R.S. § 6-1-113(2)(a)
• Attorneys' fees — mandatory to prevailing consumer under C.R.S. § 6-1-113(2)(b)
• SOL — 3 years from accrual under C.R.S. § 6-1-115
• "Significant public impact" requirement — Hall v. Walter, 969 P.2d 224 (Colo. 1998), requires the consumer to show that the practice significantly impacts the public beyond a single transaction. This is a real hurdle in single-plaintiff cases — often defeated by showing the defendant's pattern across many consumers.

SOL on credit-card debt — 6 years

Colorado SOL on credit-card debt = 6 years under C.R.S. § 13-80-103.5(1)(a) ("any liquidated debt or any unliquidated, determinable amount of money"). This was settled by Hassler v. Account Brokers of Larimer Cnty., Inc., 2012 CO 24 (post-2003 amendment moved most consumer credit obligations to the 6-year provision).

Watch for revival: a written acknowledgment of the debt or a partial payment restarts the 6-year clock under C.R.S. § 13-80-113. Debt buyers often try to revive stale debts by soliciting a small payment ("Pay just $25 today"). The 6-year clock resets only with a written acknowledgment that is specific to the debt — not a generic settlement letter.

Chain of title — Colorado UCC Article 9

Colorado's UCC Article 9 (C.R.S. art. 9 of title 4) governs assignments of accounts. A debt buyer must trace the chain of title from the original creditor through every intermediate buyer to itself with:

• Bill of Sale for each transfer
• Assignment specifically identifying the account (account number or unique identifier)
• Account-level data matching the specific consumer's account

A bill of sale that references "an attached portfolio" but does not attach the portfolio is insufficient. A bill of sale that refers to "all accounts purchased on [date]" without specifically tying to this consumer's account is insufficient. See Mercer v. JPMorgan Chase Bank, N.A., 2018 COA 13, and similar Colorado authority on the standing burden.

The RFP bank in references/rfp-debt-buyer.md targets each link in the chain.

Affirmative defenses — Colorado debt-buyer answer

In the answer, plead all that apply:

1. Failure to state a claim (C.R.C.P. 12(b)(5)) — pleading inadequate to allege chain of title or specific account terms
2. Statute of limitations (C.R.S. § 13-80-103.5(1)(a)) — 6 years from date of default
3. Lack of standing — debt buyer cannot prove ownership of this specific account
4. CFDCPA licensure (C.R.S. § 5-16-115) — Plaintiff is not a licensed Colorado collection agency
5. Account stated — no agreed accounting between this Plaintiff and Defendant
6. Lack of consideration / failure of consideration
7. Lack of privity between Plaintiff and Defendant
8. Estoppel / waiver — based on creditor conduct
9. Payment / accord and satisfaction
10. Identity theft (if applicable) — FCRA § 605B
11. Discharge in bankruptcy (if applicable)
12. CCPA violation (raised as counterclaim, but also affirmative)

See references/affirmative-defenses.md for the annotated catalog.

Discovery strategy

The discovery-and-MTC playbook in a Colorado debt-buyer case (filed in county court — see co-discovery for county-court limitations):

1. First Set of RFAs — admissions on the elements (no contract, no assignment, no statement of account, etc.)
2. First Set of Interrogatories — chain of title, custodian, account-level data
3. First Set of RFPs — bills of sale, assignments, original contract, statements, account-level data, electronic records
4. Subpoena to original creditor — verifying chain of title
5. Meet-and-confer — formal letter when responses are deficient
6. Motion to Compel with C.R.C.P. 37(a)(5) fees

The full RFP / RFA / Interrogatory banks live in the references.

Counterclaim package

Where the facts support it, file a counterclaim alleging:

• FDCPA violation (federal claim, 1-year SOL from violation)
• CFDCPA violation (state claim, 1-year SOL)
• CCPA violation (state claim, 3-year SOL; 3x damages + fees)
• Common-law claims if applicable (abuse of process, malicious prosecution — high bar)

Counterclaims are typically compulsory under C.R.C.P. 13(a) when they arise from the same transaction — file them at the time of answer to avoid waiver.

Composition

• For statewide format: co-statewide-format
• For drafting the answer: co-draft-motion, co-first-30-days
• For drafting the declaration: co-draft-declaration
• For drafting the proposed order: co-draft-order
• For motion-to-compel mechanics: co-discovery, co-draft-motion
• For court overlay (typically county court at this dollar amount): co-county-courts
• For setting aside default: co-post-judgment
• For deadlines: co-deadlines
• For QC: co-quality-check, co-fact-check

References

• references/fdcpa.md — FDCPA § 1692 et seq. annotated
• references/reg-f.md — Regulation F at 12 C.F.R. pt. 1006
• references/co-cfdcpa.md — Colorado FDCPA (C.R.S. art. 16 of title 5)
• references/co-ccpa.md — Colorado CPA (C.R.S. art. 1 of title 6)
• references/co-uccc.md — Colorado UCCC (C.R.S. art. 1-9 of title 5)
• references/co-collection-agency-licensure.md — C.R.S. § 5-16-115 licensing requirement
• references/co-statutes-of-limitations.md — Colorado SOL on debt
• references/chain-of-title.md — Article 9 doctrine in Colorado
• references/evidence-debt-buyer.md — CRE 803(6) / 902(11) foundation in Colorado courts
• references/rfp-debt-buyer.md — Request for Production bank
• references/rfa-debt-buyer.md — Request for Admission bank
• references/interrogatories-debt-buyer.md — Interrogatory bank
• references/meet-and-confer-debt-buyer.md — M&C letter templates
• references/affirmative-defenses.md — annotated catalog
• references/key-cases.md — Colorado debt-buyer case law
• references/recent-decisions.md — recent decisions to track
• references/fees-consumer-debt.md — fee mechanics in debt cases
• references/ucc-article-9.md — Colorado UCC Article 9 enactment
• references/online-sources-consumer-debt.md — canonical URLs