2023 Colorado Revised Statutes › Title 5 - CONSUMER CREDIT CODE (§§ 5-1-101 — 5-21-116) › CONSUMER CREDIT CODE (§§ 5-1-101 — 5-9.3-109) › Article 5 - REMEDIES AND PENALTIES (§§ 5-5-101 — 5-5-302) › Part 1 - LIMITATIONS ON CREDITORS' REMEDIES (§§ 5-5-101 — 5-5-112) › Section 5-5-103 - Restrictions on deficiency judgments in consumer credit sales

(1)
This section applies to a consumer credit sale of goods or services. A consumer is not liable for a deficiency unless the creditor has disposed of the goods in accordance with the provisions on the disposition of collateral of the "Uniform Commercial Code" contained in part 6 of article
9
of title
4
, C.R.S.
(2)
If the creditor repossesses, with or without the aid of judicial process, or voluntarily accepts surrender of goods that were the subject of the sale and in which the creditor has a security interest, the parties obligated are not personally liable to the creditor for the unpaid balance of the debt arising from the sale of a commercial unit of goods of which the cash sale price was three thousand dollars or less, and the creditor's duty to dispose of the collateral is governed by the provisions on the disposition of collateral of the "Uniform Commercial Code" contained in part 6 of article
9
of title
4
, C.R.S.
(3)
If the creditor repossesses, with or without the aid of judicial process, or voluntarily accepts surrender of goods that were not the subject of the sale but in which the creditor has a security interest to secure a debt arising from a sale of goods or services or a combined sale of goods and services and the cash price of the sale was three thousand dollars or less, the parties obligated are not personally liable to the creditor for the unpaid balance of the debt arising from the sale, and the creditor's duty to dispose of the collateral is governed by the provisions on disposition of collateral of the "Uniform Commercial Code" contained in part 6 of article
9
of title
4
, C.R.S.
(4)
For the purpose of determining the unpaid balance of consolidated debts or debts pursuant to revolving credit accounts, the allocation of payments to a debt shall be determined in the same manner as provided for determining the amount of debts secured by various security interests under sections
5-3-202
and
5-3-203
.
(5)
The consumer may be liable in damages to the creditor if the consumer has misused, abused, or wrongfully damaged the collateral or if, after default and demand in writing, the consumer has wrongfully failed to make the collateral available to the creditor. Nothing in this section shall limit or restrict the remedies of the holders of a security interest for damage to the collateral because of conversion, destruction, or other wrongful acts.
(6)
If the creditor elects to bring an action against the consumer for a debt arising from a consumer credit sale of goods or services, when under this section the creditor would not be entitled to a deficiency judgment if the creditor took possession of the collateral, and obtains judgment:
(a)
The creditor may not take possession of the collateral; and
(b)
The collateral is not subject to levy or sale on execution or similar proceedings pursuant to the judgment.
L. 2000: Entire article R&RE, p. 1233, § 1, effective July 1. L. 2001: (1), (2), and (3) amended, p. 1444, § 36, effective July 1. L. 2003: (3) amended, p. 1896, § 13, effective July 1.
This section is similar to former § 5-5-103, as it existed prior to 2000.