2023 Colorado Revised Statutes › Title 5 - CONSUMER CREDIT CODE (§§ 5-1-101 — 5-21-116) › DEBT MANAGEMENT (§§ 5-16-101 — 5-21-116) › Article 20 - COLORADO STUDENT LOAN EQUITY (§§ 5-20-101 — 5-20-214) › Part 2 - PRIVATE STUDENT EDUCATION LENDERS (§§ 5-20-201 — 5-20-214) › Section 5-20-212 - Collection on debt - prerequisites - documentation

(1)
Unless the private education credit borrower has invoked the borrower's right to cease communication with the collection agency, a collection agency attempting to collect a private education credit obligation shall provide the following information, in addition to any other information required under applicable federal or state law, to the private education credit borrower in the debt collection communication immediately following the communication confirming the correct identity of the private education credit borrower and at any other time the private education credit borrower so requests:
(a)
For private education credit obligations referred to collections on or after June 29, 2021, the name of the owner of the private education credit obligation debt;
(b)
The name of the true original creditor and every subsequent credit obligation holder, if applicable;
(c)
The true original creditor's account number used to identify the private education credit obligation debt at the time of default, if the true original creditor used an account number to identify the private education credit obligation at the time of default. The collection agency may rely on account numbers provided by the creditor.
(d)
The amount due when the private education credit obligation was referred to collections;
(e)
For private education credit obligations referred to collections on or after June 29, 2021, a log of all payments made on the student credit obligation account;
(f)
A copy of all pages of the contract, application, or other documents evidencing the private education credit borrower's liability for the private education credit obligation, stating all terms and conditions applicable to the credit obligation; and
(g)
A clear and conspicuous statement disclosing that the private education credit borrower has a right to request all nonprivileged information possessed by the creditor or collection agency related to the defaulted private education credit obligation debt, including the required information described in subsection (2) of this section, and that failure to provide that information within thirty days after such a request precludes the collection agency from collecting or attempting to collect the credit obligation.
(1.5)
(a)
From the information listed in subsection (1) of this section, the collection agency may redact the private education credit borrower's social security number, all but the last four digits of the private education credit borrower's account number, and any other personal identifying information. A collection agency that, in good faith, attempts to validate the identity of the borrower and sends the information required by this section in conjunction with the notice required by
15 U.S.C. sec. 1692g (a)
is deemed to have verified the identity of the borrower for purposes of this section.
(b)
The information listed in subsection (1) of this section may accompany any debt validation notice issued to the debtor pursuant to section
5-16-109 (1)
.
(2)
A collection agency shall not collect or attempt to collect a private education credit obligation debt unless the collection agency possesses, and furnishes the following information to the private education credit borrower upon request within thirty days after the request; and, for credit obligations referred to collections before June 29, 2021, the collection agency shall have thirty days to acquire the information from the private education creditor:
(a)
The name of the owner of the private education credit obligation;
(b)
The name of the true original creditor and every subsequent credit obligation holder, if applicable;
(c)
The true original creditor's account number used to identify the private education credit obligation at the time of default, if the true original creditor used an account number to identify the credit obligation at the time of default, and the account number assigned to the credit obligation by each subsequent credit obligation holder, if known;
(d)
The amount due when the private education credit obligation was referred to collections;
(e)
An itemization of interest and fees, if any, claimed to be owed and whether those were imposed by the true original creditor or any subsequent owners of the private education creditor. The collection agency may rely on information provided by the creditor.
(f)
The date that the private education credit obligation was incurred;
(g)
A billing statement or other account record indicating the date of the last payment made on the private education credit obligation, if applicable;
(h)
(I)
A log of all collection attempts made by the collection agency in the immediately preceding twelve months, including the date and time of all calls and letters; and
(II)
For private education credit obligations referred to collections on or after June 29, 2021, copies of all settlement letters or, in the alternative, a statement that the collection agency has not attempted to settle or otherwise renegotiate the credit obligation;
(i)
A copy of all pages of the contract, application, or other documents evidencing the private education credit borrower's liability for the private education credit obligation, stating all terms and conditions applicable to the credit obligation; and
(j)
Documentation establishing that the collection agency is the owner, or acting on behalf of the owner, of the specific, individual private education credit obligation at issue. If the private education credit borrower disputes the ownership or assignment of the credit obligation, the collection agency has the burden of establishing the unbroken chain of ownership, beginning with the true original creditor to the first subsequent credit obligation holder and each additional credit obligation holder.
(3)
Upon a private education credit borrower's default in payment on a private education credit obligation, and before a creditor may accelerate the maturity of the credit obligation or commence a legal action against the private education credit borrower, the creditor shall provide to the private education credit borrower a notice of intention to accelerate the credit obligation. The creditor shall provide the notice at least thirty days, but not more than one hundred days, in advance of the action.
(4)
(a)
A creditor or debt buyer that intends to collect or attempt to collect a private education credit obligation shall provide written notice of that intention to the private education credit borrower by registered or certified mail, return receipt requested, at the private education credit borrower's last-known address.
(b)
The notice required by this subsection (4):
(I)
Is effective on the date it is delivered in person or mailed, as applicable; and
(II)
Must contain all information required by subsection (2) of this section.
(5)
An action to enter a judgment against a private education credit borrower must be commenced within six years of the date the private education credit borrower failed to make a payment.
(6)
A creditor or collection agency that, on or after June 29, 2021, commences a legal action against a private education credit borrower shall attach the following documentation and information to the complaint filed in a court of competent jurisdiction:
(a)
A copy of the notice of intention provided pursuant to subsection (4) of this section;
(b)
The date of the partial or missed payment that led to the referral of the private education credit obligation to collections;
(c)
The date of the last payment, if applicable;
(d)
A statement as to whether the creditor or collection agency is willing to renegotiate the terms of the credit obligation;
(e)
A statement as to whether the debt is eligible for any modified or flexible repayment option.
Amended by 2023 Ch. 360,§ 27, eff. 8/7/2023.
Added by 2021 Ch. 378, §5, eff. 6/29/2021.
2023 Ch. 360, was passed without a safety clause. See Colo. Const. art. V, § 1(3).