Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0585.01 Jerry Barry x4341
HOUSE BILL 24-1274
House Committees Senate Committees
Judiciary
A BILL FOR AN ACT
C
ONCERNING THE "UNIFORM CONSUMER DEBT DEFAULT JUDGMENTS101
A
CT".102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Colorado Commission on Uniform State Laws. The bill enacts
the "Uniform Consumer Debt Default Judgments Act" (act), drafted by
the uniform law commission.
The act requires that for a default judgment to be entered on a
claim for a consumer debt, certain information must be contained in the
complaint or amended complaint, including language notifying the debtor
HOUSE SPONSORSHIP
Snyder,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. of the debtor's rights and obligations.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 66 to title2
13 as follows:3
ARTICLE 664
Uniform Consumer Debt Default Judgments Act5
13-66-101. Short title. T
HIS ARTICLE 66 MAY BE CITED AS THE6
"U
NIFORM CONSUMER DEBT DEFAULT JUDGMENTS ACT".7
13-66-102. Definitions. I
N THIS ARTICLE 66:8
(1) "C
HARGE OFF" MEANS A CREDITOR'S REMOVAL OF A CONSUMER9
DEBT AS AN ASSET FROM THE CREDITOR 'S FINANCIAL RECORDS.10
(2) "C
ONSUMER" MEANS AN INDIVIDUAL NAMED AS A DEFENDANT11
IN AN ACTION FOR COLLECTION OF A CONSUMER DEBT TO WHICH THIS12
ARTICLE 66 APPLIES.13
(3) "C
ONSUMER DEBT" MEANS AN OBLIGATION OR ALLEGED14
OBLIGATION OF AN INDIVIDUAL TO PAY MONEY THAT ARISES OUT OF A15
TRANSACTION IN WHICH THE MONEY , PROPERTY, INSURANCE, OR SERVICE16
THAT IS THE SUBJECT OF THE TRANSACTION IS PRIMARILY FOR A PERSONAL ,17
FAMILY, OR HOUSEHOLD PURPOSE.18
(4) "C
REDITOR" MEANS A PERSON TO WHICH A CONSUMER DEBT IS19
OWED AT THE TIME OF CHARGE OFF OR , IF THE DEBT WAS NOT CHARGED20
OFF, AT THE TIME OF DEFAULT.21
(5) "D
EFAULT", EXCEPT IN THE TERM "DEFAULT JUDGMENT",22
MEANS A FAILURE TO SATISFY A CONSUMER DEBT THAT GIVES RISE TO AN23
ACTION TO WHICH THIS ARTICLE 66 APPLIES.24
(6) "E
LECTRONIC" MEANS RELATING TO TECHNOLOGY HAVING25
HB24-1274-2- ELECTRICAL, DIGITAL, MAGNETIC , WIRELESS, OPTICAL,1
ELECTROMAGNETIC, OR SIMILAR CAPABILITIES.2
(7) "F
INANCE CHARGE" HAS THE SAME MEANING AS SET FORTH IN3
SECTION 106 OF THE FEDERAL "TRUTH IN LENDING ACT", 15 U.S.C. SEC.4
1605,
AS AMENDED.5
(8) "O
UTSTANDING BALANCE" MEANS THE AMOUNT OWED ON A6
CONSUMER DEBT:7
(a) A
T THE TIME OF CHARGE OFF OR , IF THE DEBT WAS NOT8
CHARGED OFF, AT THE TIME OF DEFAULT; OR9
(b) A
FTER DISPOSITION OF PROPERTY THAT SECURED THE DEBT .10
(9) "P
ERSON" MEANS AN INDIVIDUAL , ESTATE, BUSINESS OR11
NONPROFIT ENTITY, GOVERNMENT OR GOVERNMENTAL SUBDIVISION ,12
AGENCY, OR INSTRUMENTALITY, OR OTHER LEGAL ENTITY.13
(10) "R
ECORD" MEANS INFORMATION:14
(a) I
NSCRIBED ON A TANGIBLE MEDIUM ; OR15
(b) S
TORED IN AN ELECTRONIC OR OTHER MEDIUM AND16
RETRIEVABLE IN PERCEIVABLE FORM .17
(11) "S
ECURED CONSUMER DEBT " MEANS A CONSUMER DEBT18
SECURED BY REAL OR PERSONAL PROPERTY .19
(12) "S
IGN" MEANS, WITH PRESENT INTENT TO AUTHENTICATE OR20
ADOPT A RECORD:21
(a) E
XECUTE OR ADOPT A TANGIBLE SYMBOL ; OR22
(b) A
TTACH TO OR LOGICALLY ASSOCIATE WITH THE RECORD AN23
ELECTRONIC SYMBOL, SOUND, OR PROCESS.24
(13) "U
NSECURED CONSUMER DEBT " MEANS A CONSUMER DEBT25
NOT SECURED BY REAL OR PERSONAL PROPERTY .26
13-66-103. Scope. (1) E
XCEPT AS PROVIDED IN SUBSECTION (2)27
HB24-1274
-3- OF THIS SECTION, THIS ARTICLE 66 APPLIES TO THE AWARD OF A DEFAULT1
JUDGMENT IN AN ACTION FOR COLLECTION OF :2
(a) A
N UNSECURED CONSUMER DEBT ;3
(b) A
SECURED CONSUMER DEBT IF THE ACTION IS BROUGHT4
SOLELY TO OBTAIN A MONEY JUDGMENT ; OR5
(c) A
DEFICIENCY THAT REMAINS AFTER DISPOSITION OF PROPERTY6
THAT SECURED A CONSUMER DEBT .7
(2) T
HIS ARTICLE 66 DOES NOT APPLY TO:8
(a) A
N ACTION TO TAKE POSSESSION OF OR DISPOSE OF REAL OR9
PERSONAL PROPERTY, EVEN IF THE ACTION INCLUDES A REQUEST FOR A10
MONEY JUDGMENT; OR11
(b) A
N ACTION TO COLLECT A DEBT OWED TO A GOVERNMENT ,12
GOVERNMENTAL SUBDIVISION , OR AGENCY IN WHICH THE GOVERNMENT ,13
GOVERNMENTAL SUBDIVISION , OR AGENCY IS THE PLAINTIFF.14
13-66-104. Complaint requirements. (1) A
DEFAULT JUDGMENT15
IN AN ACTION TO WHICH THIS ARTICLE 66 APPLIES MAY BE ENTERED ONLY16
IF THE COMPLAINT OR AMENDED COMPLAINT COMPLIES WITH THIS SECTION17
AND INCLUDES THE NOTICE REQUIRED UNDER SECTION 13-66-105.18
(2) T
HE COMPLAINT OR AMENDED COMPLAINT MUST STATE :19
(a) E
ACH NAME AND ADDRESS OF THE CONSUMER IN THE RECORDS20
OF THE CREDITOR AT THE TIME OF CHARGE OFF OR, IF THE CONSUMER DEBT21
WAS NOT CHARGED OFF, AT THE TIME OF DEFAULT;22
(b) T
HE NAME OF THE CREDITOR , INCLUDING ANY MERCHANT23
BRAND, AFFINITY BRAND, OR FACILITY NAME ASSOCIATED WITH THE DEBT;24
(c) A
T LEAST THE LAST FOUR DIGITS OF THE ACCOUNT NUMBER OR25
OTHER ACCOUNT IDENTIFIER USED IN COMMUNICATING WITH THE26
CONSUMER BEFORE CHARGE OFF OR , IF THE DEBT WAS NOT CHARGED OFF,27
HB24-1274
-4- BEFORE DEFAULT;1
(d) T
HE DATE AND AMOUNT OF THE LAST PAYMENT ;2
(e) T
HE DATE OF CHARGE OFF OR, IF THE DEBT WAS NOT CHARGED3
OFF, THE DATE OF DEFAULT;4
(f) T
HE AMOUNT OF THE OUTSTANDING BALANCE ;5
(g) T
HE AMOUNT OF THE JUDGMENT THE PLAINTIFF SEEKS ,6
ITEMIZING THE OUTSTANDING BALANCE AND THE FOLLOWING AMOUNTS7
NOT INCLUDED IN THE OUTSTANDING BALANCE :8
(I) T
OTAL FINANCE CHARGES;9
(II) T
OTAL FEES OR COSTS;10
(III) T
OTAL ATTORNEY'S FEES; AND11
(IV) T
OTAL CREDITS AND PAYMENTS ;12
(h) A
STATEMENT WHETHER THE AMOUNT OF THE JUDGMENT MAY13
INCREASE DUE TO ACCRUED INTEREST , FEES, OR OTHER CHARGES;14
(i) T
HE AUTHORITY OF THE PLAINTIFF TO COMMENCE THE ACTION ;15
(j) F
ACTS SUFFICIENT TO DEMONSTRATE THAT THE ACTION IS16
BEING COMMENCED IN A PROPER VENUE ;17
(k) F
ACTS SUFFICIENT TO DEMONSTRATE THAT THE ACTION IS18
BEING COMMENCED WITHIN THE STATUTE OF LIMITATION PERIOD19
APPLICABLE TO THE DEBT;20
(l) U
NLESS THE PLAINTIFF IS THE CREDITOR:21
(I) T
HE NAME OF EACH PERSON THAT ACQUIRED OWNERSHIP OF22
THE DEBT AFTER CHARGE OFF OR , IF THE DEBT WAS NOT CHARGED OFF ,23
AFTER DEFAULT; AND24
(II) T
HE DATE OF EACH ACQUISITION; AND25
(m) I
NFORMATION SUFFICIENT TO DEMONSTRATE THAT THE26
PLAINTIFF POSSESSES A VALID LICENSE IF REQUIRED PURSUANT TO ARTICLE27
HB24-1274
-5- 16 OF TITLE 5.1
(3) S
UBJECT TO AUTHENTICATION REQUIRED BY OTHER LAW OF2
THIS STATE AND RULES OF PROCEDURE , THE PLAINTIFF MUST ATTACH TO3
THE COMPLAINT OR AMENDED COMPLAINT :4
(a) A
T LEAST ONE OF THE FOLLOWING THAT IS SUFFICIENT TO5
DEMONSTRATE THE EXISTENCE OF THE CONSUMER DEBT :6
(I) A
N AGREEMENT SIGNED BY THE CONSUMER ;7
(II) A
RECORD OF A PURCHASE, PAYMENT, OR USE OF AN ACCOUNT;8
OR9
(III) A
RECORD OTHERWISE DEMONSTRATING THE DEBT WAS10
INCURRED; AND11
(b) I
F THE PLAINTIFF IS NOT THE CREDITOR , DOCUMENTATION12
SUFFICIENT TO DEMONSTRATE THE AUTHORITY OF THE PLAINTIFF TO13
COLLECT THE DEBT.14
13-66-105. Consumer notice. (1) A
DEFAULT JUDGMENT MAY BE15
ENTERED IN AN ACTION TO WHICH THIS ARTICLE 66 APPLIES ONLY IF THE16
COMPLAINT OR AMENDED COMPLAINT SERVED ON THE CONSUMER IS17
ACCOMPANIED BY A SEPARATE NOTICE WARNING THAT A DEFAULT18
JUDGMENT MAY BE AWARDED AGAINST THE CONSUMER .19
(2) T
HE NOTICE MUST BE IN A RECORD SUBSTANTIALLY SIMILAR TO20
THE FORM IN SUBSECTION (3) OF THIS SECTION THAT STATES:21
(a) I
F THE CONSUMER DOES NOT FILE AN ANSWER TO THE22
COMPLAINT OR AMENDED COMPLAINT WITHIN THE TIME AND IN THE23
MANNER INDICATED IN THE SUMMONS OR APPEAR FOR THE HEARING24
REFERRED TO IN THE SUMMONS, A DEFAULT JUDGMENT MAY BE ENTERED25
AGAINST THE CONSUMER;26
(b) I
F A JUDGMENT IS ENTERED AGAINST THE CONSUMER , THE27
HB24-1274
-6- AMOUNT OF THE JUDGMENT , PLUS INTEREST ON THE JUDGMENT AS1
PROVIDED BY OTHER LAW OF THIS STATE , REMAINS IN EFFECT FOR AT2
LEAST TWENTY YEARS, EVEN IF THE JUDGMENT NO LONGER REMAINS ON3
THE CONSUMER'S CREDIT REPORT;4
(c) A
FTER ENTRY OF A JUDGMENT, THE PLAINTIFF MAY INITIATE AN5
ACTION TO SELL REAL ESTATE OWNED BY THE CONSUMER , SELL PERSONAL6
PROPERTY OWNED BY THE CONSUMER , ATTACH THE CONSUMER 'S BANK7
ACCOUNTS, OR GARNISH THE CONSUMER'S WAGES;8
(d) E
NTRY OF A JUDGMENT MAY IMPAIR ACCESS TO EMPLOYMENT ,9
INSURANCE, CREDIT, OR HOUSING;10
(e) A
N ATTORNEY MAY PROVIDE ASSISTANCE IN UNDERSTANDING11
THE COMPLAINT OR AMENDED COMPLAINT AND ADVICE ABOUT WHAT12
ACTION TO TAKE IN RESPONSE TO THE COMPLAINT OR AMENDED13
COMPLAINT; AND14
(f) (I) T
HE NAME AND CONTACT INFORMATION FOR A LEGAL AID OR15
ATTORNEY REFERRAL SERVICE THAT MAY BE ABLE TO HELP THE16
CONSUMER FIND AN ATTORNEY , AND IF THE CONSUMER CANNOT AFFORD17
AN ATTORNEY, MAY BE ABLE TO PROVIDE FREE OR REDUCED -COST LEGAL18
SERVICES.19
(II) T
HE ATTORNEY GENERAL SHALL IDENTIFY ONE OR MORE20
LEGAL AID OR ATTORNEY REFERRAL SERVICE , INCLUDING21
STOPFRAUDCOLORADO .GOV, WHOSE NAME AND CONTACT INFORMATION22
MUST BE INCLUDED IN THE NOTICE PURSUANT TO THIS SECTION .23
(3) T
HE FOLLOWING NOTICE MEETS THE REQUIREMENTS OF THIS24
SECTION:25
C
ONSUMER NOTICE26
W
ARNING27
HB24-1274
-7- IF YOU DO NOT ACT, A DEFAULT JUDGMENT1
M
AY BE ENTERED AGAINST YOU2
___________________________________________________________3
1. W
HY AM IY OU ARE GETTING THIS NOTICE4
G
ETTING THIS BECAUSE (NAME OF PLAINTIFF)5
N
OTICE? SAYS YOU OWE MONEY.6
(N
AME OR SHORTENED NAME7
OF PLAINTIFF) HAS FILED8
A LAWSUIT AGAINST YOU TO9
COLLECT THE MONEY.10
__________________________________________________________11
2. W
HAT WILL HAPPEN IF YOU DO NOT FILE A RESPONSE12
I
F I DO NOTHING? TO THE LAWSUIT OR APPEAR AT13
A HEARING ON (ENTER DATE) AT14
(TIME), A JUDGMENT MAY BE15
ENTERED AGAINST YOU.16
___________________________________________________________17
3. W
HAT HAPPENS IF YOUR PERSONAL PROPERTY18
A
JUDGMENT MAY BE TAKEN AND SOLD . 19
I
S ENTERED AGAINST MONEY MAY BE TAKEN 20
M
E? DIRECTLY FROM YOUR BANK21
ACCOUNT. MONEY MAY BE22
TAKEN DIRECTLY FROM YOUR23
WAGES. A LIEN MAY BE PUT ON24
HB24-1274
-8- YOUR HOUSE OR OTHER REAL1
ESTATE, AND THE HOUSE OR2
REAL ESTATE MAY BE SOLD.3
I
F THE JUDGMENT IS NOT PAID4
IN FULL, THE AMOUNT DUE5
MAY GROW BECAUSE OF6
INTEREST CHARGES.7
Y
OU WILL OWE THE AMOUNT8
OF THE JUDGMENT FOR AT9
LEAST TWENTY YEARS, EVEN IF10
IT NO LONGER APPEARS ON11
YOUR CREDIT REPORT.12
T
HE JUDGMENT MAY MAKE IT13
HARDER FOR YOU TO GET A JOB14
OR INSURANCE AND MORE15
EXPENSIVE FOR YOU TO GET A16
LOAN OR CREDIT CARD, RENT17
AN APARTMENT, OR BUY A18
HOUSE OR CAR.19
___________________________________________________________20
4. I
S HELP AVAILABLE?T ALK WITH A LAWYER . A21
LAWYER CAN EXPLAIN THE22
SITUATION AND HELP YOU23
HB24-1274
-9- DECIDE WHAT TO DO . THE1
FOLLOWING OFFICE MAY BE2
ABLE TO HELP YOU FIND A3
LAWYER :4
STOPFRAUDCOLORADO .GOV OR5
(
INSERT NAME AND CONTACT6
INFORMATION FOR LEGAL AID7
OR LAWYER REFERRAL8
SERVICE IDENTIFIED BY THE9
ATTORNEY GENERAL10
PURSUANT TO SECTION11
13-16-105
(2)(f)(II),12
C
OLORADO REVISED13
S
TATUTES, THAT MAY BE ABLE14
TO HELP DEFENDANT FIND A15
LAWYER). IF YOU CANNOT16
AFFORD A LAWYER, YOU MAY17
BE ABLE TO OBTAIN ONE FOR18
FREE OR REDUCED COST.19
13-66-106. Waiver void. A
WAIVER BY A CONSUMER OF A20
REQUIREMENT OF THIS ARTICLE 66 IS VOID. THIS SECTION DOES NOT21
PREVENT A VOLUNTARY SETTLEMENT AGREEMENT OR JUDGMENT22
BETWEEN THE PARTIES THAT DOES NOT RESULT IN A DEFAULT JUDGMENT .23
13-66-107. Relation to other law. T
HIS ARTICLE 66 SUPPLEMENTS24
RIGHTS AND REMEDIES AVAILABLE TO A CONSUMER UNDER OTHER LAW OF25
THIS STATE.26
13-66-108. Uniformity of application and construction. I
N27
HB24-1274
-10- APPLYING AND CONSTRUING THIS UNIFORM ACT , A COURT SHALL CONSIDER1
THE PROMOTION OF UNIFORMITY OF THE LAW AMONG JURISDICTIONS THAT2
ENACT IT.3
13-66-109. Relation to federal "Electronic Signatures in4
Global and National Commerce Act". T
HIS ARTICLE 66 MODIFIES,5
LIMITS, OR SUPERSEDES THE FEDERAL "ELECTRONIC SIGNATURES IN6
G
LOBAL AND NATIONAL COMMERCE ACT", 15 U.S.C. SEC. 7001 ET SEQ.,7
AS AMENDED, BUT DOES NOT MODIFY, LIMIT, OR SUPERSEDE 15 U.S.C. SEC.8
7001 (c),
OR AUTHORIZE ELECTRONIC DELIVERY OF ANY OF THE NOTICES9
DESCRIBED IN 15 U.S.C. SEC. 7003 (b).10
13-66-110. Transitional provision. T
HIS ARTICLE 66 APPLIES TO11
AN ACTION COMMENCED ON OR AFTER THE EFFECTIVE DATE OF THIS12
ARTICLE 66.13
SECTION 2. Act subject to petition - effective date. This act14
takes effect November 1, 2024; except that, if a referendum petition is15
filed pursuant to section 1 (3) of article V of the state constitution against16
this act or an item, section, or part of this act within the ninety-day period17
after final adjournment of the general assembly, then the act, item,18
section, or part will not take effect unless approved by the people at the19
general election to be held in November 2024 and, in such case, will take20
effect on the date of the official declaration of the vote thereon by the21
governor.22
HB24-1274
-11-