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Colorado House Bill HB1274

Colorado 2024 Regular Session

Colorado House Bill HB1274 Compare Versions

Only one version of the bill is available at this time.
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11 Second Regular Session
22 Seventy-fourth General Assembly
33 STATE OF COLORADO
44 INTRODUCED
55
66
77 LLS NO. 24-0585.01 Jerry Barry x4341
88 HOUSE BILL 24-1274
99 House Committees Senate Committees
1010 Judiciary
1111 A BILL FOR AN ACT
1212 C
1313 ONCERNING THE "UNIFORM CONSUMER DEBT DEFAULT JUDGMENTS101
1414 A
1515 CT".102
1616 Bill Summary
1717 (Note: This summary applies to this bill as introduced and does
1818 not reflect any amendments that may be subsequently adopted. If this bill
1919 passes third reading in the house of introduction, a bill summary that
2020 applies to the reengrossed version of this bill will be available at
2121 http://leg.colorado.gov/
2222 .)
2323 Colorado Commission on Uniform State Laws. The bill enacts
2424 the "Uniform Consumer Debt Default Judgments Act" (act), drafted by
2525 the uniform law commission.
2626 The act requires that for a default judgment to be entered on a
2727 claim for a consumer debt, certain information must be contained in the
2828 complaint or amended complaint, including language notifying the debtor
2929 HOUSE SPONSORSHIP
3030 Snyder,
3131 SENATE SPONSORSHIP
3232 (None),
3333 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
3434 Capital letters or bold & italic numbers indicate new material to be added to existing law.
3535 Dashes through the words or numbers indicate deletions from existing law. of the debtor's rights and obligations.
3636 Be it enacted by the General Assembly of the State of Colorado:1
3737 SECTION 1. In Colorado Revised Statutes, add article 66 to title2
3838 13 as follows:3
3939 ARTICLE 664
4040 Uniform Consumer Debt Default Judgments Act5
4141 13-66-101. Short title. T
4242 HIS ARTICLE 66 MAY BE CITED AS THE6
4343 "U
4444 NIFORM CONSUMER DEBT DEFAULT JUDGMENTS ACT".7
4545 13-66-102. Definitions. I
4646 N THIS ARTICLE 66:8
4747 (1) "C
4848 HARGE OFF" MEANS A CREDITOR'S REMOVAL OF A CONSUMER9
4949 DEBT AS AN ASSET FROM THE CREDITOR 'S FINANCIAL RECORDS.10
5050 (2) "C
5151 ONSUMER" MEANS AN INDIVIDUAL NAMED AS A DEFENDANT11
5252 IN AN ACTION FOR COLLECTION OF A CONSUMER DEBT TO WHICH THIS12
5353 ARTICLE 66 APPLIES.13
5454 (3) "C
5555 ONSUMER DEBT" MEANS AN OBLIGATION OR ALLEGED14
5656 OBLIGATION OF AN INDIVIDUAL TO PAY MONEY THAT ARISES OUT OF A15
5757 TRANSACTION IN WHICH THE MONEY , PROPERTY, INSURANCE, OR SERVICE16
5858 THAT IS THE SUBJECT OF THE TRANSACTION IS PRIMARILY FOR A PERSONAL ,17
5959 FAMILY, OR HOUSEHOLD PURPOSE.18
6060 (4) "C
6161 REDITOR" MEANS A PERSON TO WHICH A CONSUMER DEBT IS19
6262 OWED AT THE TIME OF CHARGE OFF OR , IF THE DEBT WAS NOT CHARGED20
6363 OFF, AT THE TIME OF DEFAULT.21
6464 (5) "D
6565 EFAULT", EXCEPT IN THE TERM "DEFAULT JUDGMENT",22
6666 MEANS A FAILURE TO SATISFY A CONSUMER DEBT THAT GIVES RISE TO AN23
6767 ACTION TO WHICH THIS ARTICLE 66 APPLIES.24
6868 (6) "E
6969 LECTRONIC" MEANS RELATING TO TECHNOLOGY HAVING25
7070 HB24-1274-2- ELECTRICAL, DIGITAL, MAGNETIC , WIRELESS, OPTICAL,1
7171 ELECTROMAGNETIC, OR SIMILAR CAPABILITIES.2
7272 (7) "F
7373 INANCE CHARGE" HAS THE SAME MEANING AS SET FORTH IN3
7474 SECTION 106 OF THE FEDERAL "TRUTH IN LENDING ACT", 15 U.S.C. SEC.4
7575 1605,
7676 AS AMENDED.5
7777 (8) "O
7878 UTSTANDING BALANCE" MEANS THE AMOUNT OWED ON A6
7979 CONSUMER DEBT:7
8080 (a) A
8181 T THE TIME OF CHARGE OFF OR , IF THE DEBT WAS NOT8
8282 CHARGED OFF, AT THE TIME OF DEFAULT; OR9
8383 (b) A
8484 FTER DISPOSITION OF PROPERTY THAT SECURED THE DEBT .10
8585 (9) "P
8686 ERSON" MEANS AN INDIVIDUAL , ESTATE, BUSINESS OR11
8787 NONPROFIT ENTITY, GOVERNMENT OR GOVERNMENTAL SUBDIVISION ,12
8888 AGENCY, OR INSTRUMENTALITY, OR OTHER LEGAL ENTITY.13
8989 (10) "R
9090 ECORD" MEANS INFORMATION:14
9191 (a) I
9292 NSCRIBED ON A TANGIBLE MEDIUM ; OR15
9393 (b) S
9494 TORED IN AN ELECTRONIC OR OTHER MEDIUM AND16
9595 RETRIEVABLE IN PERCEIVABLE FORM .17
9696 (11) "S
9797 ECURED CONSUMER DEBT " MEANS A CONSUMER DEBT18
9898 SECURED BY REAL OR PERSONAL PROPERTY .19
9999 (12) "S
100100 IGN" MEANS, WITH PRESENT INTENT TO AUTHENTICATE OR20
101101 ADOPT A RECORD:21
102102 (a) E
103103 XECUTE OR ADOPT A TANGIBLE SYMBOL ; OR22
104104 (b) A
105105 TTACH TO OR LOGICALLY ASSOCIATE WITH THE RECORD AN23
106106 ELECTRONIC SYMBOL, SOUND, OR PROCESS.24
107107 (13) "U
108108 NSECURED CONSUMER DEBT " MEANS A CONSUMER DEBT25
109109 NOT SECURED BY REAL OR PERSONAL PROPERTY .26
110110 13-66-103. Scope. (1) E
111111 XCEPT AS PROVIDED IN SUBSECTION (2)27
112112 HB24-1274
113113 -3- OF THIS SECTION, THIS ARTICLE 66 APPLIES TO THE AWARD OF A DEFAULT1
114114 JUDGMENT IN AN ACTION FOR COLLECTION OF :2
115115 (a) A
116116 N UNSECURED CONSUMER DEBT ;3
117117 (b) A
118118 SECURED CONSUMER DEBT IF THE ACTION IS BROUGHT4
119119 SOLELY TO OBTAIN A MONEY JUDGMENT ; OR5
120120 (c) A
121121 DEFICIENCY THAT REMAINS AFTER DISPOSITION OF PROPERTY6
122122 THAT SECURED A CONSUMER DEBT .7
123123 (2) T
124124 HIS ARTICLE 66 DOES NOT APPLY TO:8
125125 (a) A
126126 N ACTION TO TAKE POSSESSION OF OR DISPOSE OF REAL OR9
127127 PERSONAL PROPERTY, EVEN IF THE ACTION INCLUDES A REQUEST FOR A10
128128 MONEY JUDGMENT; OR11
129129 (b) A
130130 N ACTION TO COLLECT A DEBT OWED TO A GOVERNMENT ,12
131131 GOVERNMENTAL SUBDIVISION , OR AGENCY IN WHICH THE GOVERNMENT ,13
132132 GOVERNMENTAL SUBDIVISION , OR AGENCY IS THE PLAINTIFF.14
133133 13-66-104. Complaint requirements. (1) A
134134 DEFAULT JUDGMENT15
135135 IN AN ACTION TO WHICH THIS ARTICLE 66 APPLIES MAY BE ENTERED ONLY16
136136 IF THE COMPLAINT OR AMENDED COMPLAINT COMPLIES WITH THIS SECTION17
137137 AND INCLUDES THE NOTICE REQUIRED UNDER SECTION 13-66-105.18
138138 (2) T
139139 HE COMPLAINT OR AMENDED COMPLAINT MUST STATE :19
140140 (a) E
141141 ACH NAME AND ADDRESS OF THE CONSUMER IN THE RECORDS20
142142 OF THE CREDITOR AT THE TIME OF CHARGE OFF OR, IF THE CONSUMER DEBT21
143143 WAS NOT CHARGED OFF, AT THE TIME OF DEFAULT;22
144144 (b) T
145145 HE NAME OF THE CREDITOR , INCLUDING ANY MERCHANT23
146146 BRAND, AFFINITY BRAND, OR FACILITY NAME ASSOCIATED WITH THE DEBT;24
147147 (c) A
148148 T LEAST THE LAST FOUR DIGITS OF THE ACCOUNT NUMBER OR25
149149 OTHER ACCOUNT IDENTIFIER USED IN COMMUNICATING WITH THE26
150150 CONSUMER BEFORE CHARGE OFF OR , IF THE DEBT WAS NOT CHARGED OFF,27
151151 HB24-1274
152152 -4- BEFORE DEFAULT;1
153153 (d) T
154154 HE DATE AND AMOUNT OF THE LAST PAYMENT ;2
155155 (e) T
156156 HE DATE OF CHARGE OFF OR, IF THE DEBT WAS NOT CHARGED3
157157 OFF, THE DATE OF DEFAULT;4
158158 (f) T
159159 HE AMOUNT OF THE OUTSTANDING BALANCE ;5
160160 (g) T
161161 HE AMOUNT OF THE JUDGMENT THE PLAINTIFF SEEKS ,6
162162 ITEMIZING THE OUTSTANDING BALANCE AND THE FOLLOWING AMOUNTS7
163163 NOT INCLUDED IN THE OUTSTANDING BALANCE :8
164164 (I) T
165165 OTAL FINANCE CHARGES;9
166166 (II) T
167167 OTAL FEES OR COSTS;10
168168 (III) T
169169 OTAL ATTORNEY'S FEES; AND11
170170 (IV) T
171171 OTAL CREDITS AND PAYMENTS ;12
172172 (h) A
173173 STATEMENT WHETHER THE AMOUNT OF THE JUDGMENT MAY13
174174 INCREASE DUE TO ACCRUED INTEREST , FEES, OR OTHER CHARGES;14
175175 (i) T
176176 HE AUTHORITY OF THE PLAINTIFF TO COMMENCE THE ACTION ;15
177177 (j) F
178178 ACTS SUFFICIENT TO DEMONSTRATE THAT THE ACTION IS16
179179 BEING COMMENCED IN A PROPER VENUE ;17
180180 (k) F
181181 ACTS SUFFICIENT TO DEMONSTRATE THAT THE ACTION IS18
182182 BEING COMMENCED WITHIN THE STATUTE OF LIMITATION PERIOD19
183183 APPLICABLE TO THE DEBT;20
184184 (l) U
185185 NLESS THE PLAINTIFF IS THE CREDITOR:21
186186 (I) T
187187 HE NAME OF EACH PERSON THAT ACQUIRED OWNERSHIP OF22
188188 THE DEBT AFTER CHARGE OFF OR , IF THE DEBT WAS NOT CHARGED OFF ,23
189189 AFTER DEFAULT; AND24
190190 (II) T
191191 HE DATE OF EACH ACQUISITION; AND25
192192 (m) I
193193 NFORMATION SUFFICIENT TO DEMONSTRATE THAT THE26
194194 PLAINTIFF POSSESSES A VALID LICENSE IF REQUIRED PURSUANT TO ARTICLE27
195195 HB24-1274
196196 -5- 16 OF TITLE 5.1
197197 (3) S
198198 UBJECT TO AUTHENTICATION REQUIRED BY OTHER LAW OF2
199199 THIS STATE AND RULES OF PROCEDURE , THE PLAINTIFF MUST ATTACH TO3
200200 THE COMPLAINT OR AMENDED COMPLAINT :4
201201 (a) A
202202 T LEAST ONE OF THE FOLLOWING THAT IS SUFFICIENT TO5
203203 DEMONSTRATE THE EXISTENCE OF THE CONSUMER DEBT :6
204204 (I) A
205205 N AGREEMENT SIGNED BY THE CONSUMER ;7
206206 (II) A
207207 RECORD OF A PURCHASE, PAYMENT, OR USE OF AN ACCOUNT;8
208208 OR9
209209 (III) A
210210 RECORD OTHERWISE DEMONSTRATING THE DEBT WAS10
211211 INCURRED; AND11
212212 (b) I
213213 F THE PLAINTIFF IS NOT THE CREDITOR , DOCUMENTATION12
214214 SUFFICIENT TO DEMONSTRATE THE AUTHORITY OF THE PLAINTIFF TO13
215215 COLLECT THE DEBT.14
216216 13-66-105. Consumer notice. (1) A
217217 DEFAULT JUDGMENT MAY BE15
218218 ENTERED IN AN ACTION TO WHICH THIS ARTICLE 66 APPLIES ONLY IF THE16
219219 COMPLAINT OR AMENDED COMPLAINT SERVED ON THE CONSUMER IS17
220220 ACCOMPANIED BY A SEPARATE NOTICE WARNING THAT A DEFAULT18
221221 JUDGMENT MAY BE AWARDED AGAINST THE CONSUMER .19
222222 (2) T
223223 HE NOTICE MUST BE IN A RECORD SUBSTANTIALLY SIMILAR TO20
224224 THE FORM IN SUBSECTION (3) OF THIS SECTION THAT STATES:21
225225 (a) I
226226 F THE CONSUMER DOES NOT FILE AN ANSWER TO THE22
227227 COMPLAINT OR AMENDED COMPLAINT WITHIN THE TIME AND IN THE23
228228 MANNER INDICATED IN THE SUMMONS OR APPEAR FOR THE HEARING24
229229 REFERRED TO IN THE SUMMONS, A DEFAULT JUDGMENT MAY BE ENTERED25
230230 AGAINST THE CONSUMER;26
231231 (b) I
232232 F A JUDGMENT IS ENTERED AGAINST THE CONSUMER , THE27
233233 HB24-1274
234234 -6- AMOUNT OF THE JUDGMENT , PLUS INTEREST ON THE JUDGMENT AS1
235235 PROVIDED BY OTHER LAW OF THIS STATE , REMAINS IN EFFECT FOR AT2
236236 LEAST TWENTY YEARS, EVEN IF THE JUDGMENT NO LONGER REMAINS ON3
237237 THE CONSUMER'S CREDIT REPORT;4
238238 (c) A
239239 FTER ENTRY OF A JUDGMENT, THE PLAINTIFF MAY INITIATE AN5
240240 ACTION TO SELL REAL ESTATE OWNED BY THE CONSUMER , SELL PERSONAL6
241241 PROPERTY OWNED BY THE CONSUMER , ATTACH THE CONSUMER 'S BANK7
242242 ACCOUNTS, OR GARNISH THE CONSUMER'S WAGES;8
243243 (d) E
244244 NTRY OF A JUDGMENT MAY IMPAIR ACCESS TO EMPLOYMENT ,9
245245 INSURANCE, CREDIT, OR HOUSING;10
246246 (e) A
247247 N ATTORNEY MAY PROVIDE ASSISTANCE IN UNDERSTANDING11
248248 THE COMPLAINT OR AMENDED COMPLAINT AND ADVICE ABOUT WHAT12
249249 ACTION TO TAKE IN RESPONSE TO THE COMPLAINT OR AMENDED13
250250 COMPLAINT; AND14
251251 (f) (I) T
252252 HE NAME AND CONTACT INFORMATION FOR A LEGAL AID OR15
253253 ATTORNEY REFERRAL SERVICE THAT MAY BE ABLE TO HELP THE16
254254 CONSUMER FIND AN ATTORNEY , AND IF THE CONSUMER CANNOT AFFORD17
255255 AN ATTORNEY, MAY BE ABLE TO PROVIDE FREE OR REDUCED -COST LEGAL18
256256 SERVICES.19
257257 (II) T
258258 HE ATTORNEY GENERAL SHALL IDENTIFY ONE OR MORE20
259259 LEGAL AID OR ATTORNEY REFERRAL SERVICE , INCLUDING21
260260 STOPFRAUDCOLORADO .GOV, WHOSE NAME AND CONTACT INFORMATION22
261261 MUST BE INCLUDED IN THE NOTICE PURSUANT TO THIS SECTION .23
262262 (3) T
263263 HE FOLLOWING NOTICE MEETS THE REQUIREMENTS OF THIS24
264264 SECTION:25
265265 C
266266 ONSUMER NOTICE26
267267 W
268268 ARNING27
269269 HB24-1274
270270 -7- IF YOU DO NOT ACT, A DEFAULT JUDGMENT1
271271 M
272272 AY BE ENTERED AGAINST YOU2
273273 ___________________________________________________________3
274274 1. W
275275 HY AM IY OU ARE GETTING THIS NOTICE4
276276 G
277277 ETTING THIS BECAUSE (NAME OF PLAINTIFF)5
278278 N
279279 OTICE? SAYS YOU OWE MONEY.6
280280 (N
281281 AME OR SHORTENED NAME7
282282 OF PLAINTIFF) HAS FILED8
283283 A LAWSUIT AGAINST YOU TO9
284284 COLLECT THE MONEY.10
285285 __________________________________________________________11
286286 2. W
287287 HAT WILL HAPPEN IF YOU DO NOT FILE A RESPONSE12
288288 I
289289 F I DO NOTHING? TO THE LAWSUIT OR APPEAR AT13
290290 A HEARING ON (ENTER DATE) AT14
291291 (TIME), A JUDGMENT MAY BE15
292292 ENTERED AGAINST YOU.16
293293 ___________________________________________________________17
294294 3. W
295295 HAT HAPPENS IF YOUR PERSONAL PROPERTY18
296296 A
297297 JUDGMENT MAY BE TAKEN AND SOLD . 19
298298 I
299299 S ENTERED AGAINST MONEY MAY BE TAKEN 20
300300 M
301301 E? DIRECTLY FROM YOUR BANK21
302302 ACCOUNT. MONEY MAY BE22
303303 TAKEN DIRECTLY FROM YOUR23
304304 WAGES. A LIEN MAY BE PUT ON24
305305 HB24-1274
306306 -8- YOUR HOUSE OR OTHER REAL1
307307 ESTATE, AND THE HOUSE OR2
308308 REAL ESTATE MAY BE SOLD.3
309309 I
310310 F THE JUDGMENT IS NOT PAID4
311311 IN FULL, THE AMOUNT DUE5
312312 MAY GROW BECAUSE OF6
313313 INTEREST CHARGES.7
314314 Y
315315 OU WILL OWE THE AMOUNT8
316316 OF THE JUDGMENT FOR AT9
317317 LEAST TWENTY YEARS, EVEN IF10
318318 IT NO LONGER APPEARS ON11
319319 YOUR CREDIT REPORT.12
320320 T
321321 HE JUDGMENT MAY MAKE IT13
322322 HARDER FOR YOU TO GET A JOB14
323323 OR INSURANCE AND MORE15
324324 EXPENSIVE FOR YOU TO GET A16
325325 LOAN OR CREDIT CARD, RENT17
326326 AN APARTMENT, OR BUY A18
327327 HOUSE OR CAR.19
328328 ___________________________________________________________20
329329 4. I
330330 S HELP AVAILABLE?T ALK WITH A LAWYER . A21
331331 LAWYER CAN EXPLAIN THE22
332332 SITUATION AND HELP YOU23
333333 HB24-1274
334334 -9- DECIDE WHAT TO DO . THE1
335335 FOLLOWING OFFICE MAY BE2
336336 ABLE TO HELP YOU FIND A3
337337 LAWYER :4
338338 STOPFRAUDCOLORADO .GOV OR5
339339 (
340340 INSERT NAME AND CONTACT6
341341 INFORMATION FOR LEGAL AID7
342342 OR LAWYER REFERRAL8
343343 SERVICE IDENTIFIED BY THE9
344344 ATTORNEY GENERAL10
345345 PURSUANT TO SECTION11
346346 13-16-105
347347 (2)(f)(II),12
348348 C
349349 OLORADO REVISED13
350350 S
351351 TATUTES, THAT MAY BE ABLE14
352352 TO HELP DEFENDANT FIND A15
353353 LAWYER). IF YOU CANNOT16
354354 AFFORD A LAWYER, YOU MAY17
355355 BE ABLE TO OBTAIN ONE FOR18
356356 FREE OR REDUCED COST.19
357357 13-66-106. Waiver void. A
358358 WAIVER BY A CONSUMER OF A20
359359 REQUIREMENT OF THIS ARTICLE 66 IS VOID. THIS SECTION DOES NOT21
360360 PREVENT A VOLUNTARY SETTLEMENT AGREEMENT OR JUDGMENT22
361361 BETWEEN THE PARTIES THAT DOES NOT RESULT IN A DEFAULT JUDGMENT .23
362362 13-66-107. Relation to other law. T
363363 HIS ARTICLE 66 SUPPLEMENTS24
364364 RIGHTS AND REMEDIES AVAILABLE TO A CONSUMER UNDER OTHER LAW OF25
365365 THIS STATE.26
366366 13-66-108. Uniformity of application and construction. I
367367 N27
368368 HB24-1274
369369 -10- APPLYING AND CONSTRUING THIS UNIFORM ACT , A COURT SHALL CONSIDER1
370370 THE PROMOTION OF UNIFORMITY OF THE LAW AMONG JURISDICTIONS THAT2
371371 ENACT IT.3
372372 13-66-109. Relation to federal "Electronic Signatures in4
373373 Global and National Commerce Act". T
374374 HIS ARTICLE 66 MODIFIES,5
375375 LIMITS, OR SUPERSEDES THE FEDERAL "ELECTRONIC SIGNATURES IN6
376376 G
377377 LOBAL AND NATIONAL COMMERCE ACT", 15 U.S.C. SEC. 7001 ET SEQ.,7
378378 AS AMENDED, BUT DOES NOT MODIFY, LIMIT, OR SUPERSEDE 15 U.S.C. SEC.8
379379 7001 (c),
380380 OR AUTHORIZE ELECTRONIC DELIVERY OF ANY OF THE NOTICES9
381381 DESCRIBED IN 15 U.S.C. SEC. 7003 (b).10
382382 13-66-110. Transitional provision. T
383383 HIS ARTICLE 66 APPLIES TO11
384384 AN ACTION COMMENCED ON OR AFTER THE EFFECTIVE DATE OF THIS12
385385 ARTICLE 66.13
386386 SECTION 2. Act subject to petition - effective date. This act14
387387 takes effect November 1, 2024; except that, if a referendum petition is15
388388 filed pursuant to section 1 (3) of article V of the state constitution against16
389389 this act or an item, section, or part of this act within the ninety-day period17
390390 after final adjournment of the general assembly, then the act, item,18
391391 section, or part will not take effect unless approved by the people at the19
392392 general election to be held in November 2024 and, in such case, will take20
393393 effect on the date of the official declaration of the vote thereon by the21
394394 governor.22
395395 HB24-1274
396396 -11-