Colorado House Bill HB1274

Colorado 2024 Regular Session

• Introduced: 2/13/24
• Report Pass: 2/27/24
• Refer: 2/13/24
• Refer: 2/27/24

Caption

Uniform Consumer Debt Default Judgments Act

Impact

The implications of HB 1274 are significant for both consumers and creditors in Colorado. It introduces a level of uniformity to the treatment of consumer debt cases across the state, which may streamline the legal process for both parties involved. By mandating that detailed information about the debt and the debtor's rights be included in complaint submissions, the bill aims to empower consumers and improve their understanding of the judicial process. This could help mitigate instances of unfair practices where consumers may have been unaware of their legal standing and obligations.

Summary

House Bill 1274, known as the Uniform Consumer Debt Default Judgments Act, aims to establish a standardized process for the entry of default judgments in actions related to consumer debts in Colorado. The bill sets forth specific requirements that must be met for a default judgment to be granted, including comprehensive documentation of the consumer debt and notification to the consumer about their rights. These measures are intended to offer protection to consumers and ensure that any legal actions taken against them are transparent and fair, thereby preventing potential abuses in debt collection practices.

Contention

Despite the intent behind the legislation, there may be points of contention among stakeholders. Supporters argue that the bill provides necessary protections to consumers, while critics may claim that the additional requirements could hinder creditors' ability to collect debts efficiently. There is also concern regarding the potential impact on the judicial system's workload, as the need for detailed documentation could slow down the process of obtaining judgments. Furthermore, questions may arise about how these changes would be enforced and whether all creditors would comply with the new standards.