Debt Statute of Limitations in Colorado
In Colorado, the statute of limitations for debt varies depending on the type of debt. If you are dealing with debt, it is essential to understand the statute of limitations to know the time limit for creditors to sue you for collections.
Statute of Limitations for Debt in Colorado
In Colorado, the time limit for creditors to sue over unpaid debts is called the statute of limitations. The statute of limitations varies depending on the type of debt. Below are the statute of limitations for different types of debt in Colorado:
Credit card debt: The statute of limitations for credit card debt is six years in Colorado. This means that creditors have six years after the debt has gone unpaid to sue.
Written contracts: The statute of limitations for debts on written contracts, including personal loans, is six years.
Oral contracts: The statute of limitations for oral contracts is three years in Colorado. Oral contracts are unwritten agreements between two parties, often referred to as verbal contracts.
Promissory notes: The statute of limitations for promissory notes in Colorado is six years. Promissory notes are written promises to pay back a debt.
Debt Collection Laws in Colorado
In Colorado, the Fair Debt Collection Practices Act (FDCPA) regulates debt collection practices. This law prohibits debt collectors from using unfair, deceptive, or abusive practices to collect a debt. The FDCPA applies to third-party debt collectors, not creditors collecting their debts in-house.
Below are some common debt collection practices that the FDCPA prohibits:
– Calling excessively (more than once a day) or outside certain hours (before 8 am or after 9 pm).
– Threatening a lawsuit or other legal action that the collector has no intention of taking.
– Using obscene language or profanity on the phone or in written communication.
– Revealing debt information to someone without consumer’s permission, besides a spouse or attorney.
– Depositing a post-dated check early.
– Pretending to be someone other than a debt collector, such as a government or law enforcement official.
If a debt collector violates the FDCPA, consumers can file a complaint with the Colorado Attorney General’s office or the Consumer Financial Protection Bureau (CFPB). Consumers can also file a lawsuit against the debt collector for damages.
Frequently Asked Questions About Debt Statute of Limitations in Colorado
Q: What happens when the statute of limitations on debt expires in Colorado?
A: When the statute of limitations on a debt expires, the creditor cannot sue the debtor to collect that debt. However, the debt still exists, and the creditor can still try to collect it by other means.
Q: Can creditors still call after the statute of limitations in Colorado?
A: Yes, a creditor can still call after the statute of limitations expires, but they cannot sue to collect the debt. Creditors may still attempt to collect the debt through letters, phone calls or other methods.
Q: Can debt collectors sue after the statute of limitations in Colorado?
A: No, if the statute of limitations has expired, the debt collector cannot sue the debtor to collect the debt.
Q: Can debts be removed from a credit report after the statute of limitations in Colorado?
A: No, the debt will remain on the credit report for seven years from the date of the first delinquency. After that time, it will fall off the credit report.
Q: Are there any exceptions to the statute of limitations on debt in Colorado?
A: Yes, there are some exceptions to the statute of limitations on debt in Colorado. For example, if the debtor leaves the state for some time, the statute of limitations may be tolled or suspended until the debtor returns.
Q: Should I pay a debt that is past the statute of limitations in Colorado?
A: If the debt is past the statute of limitations, it may not be necessary to pay it. However, some consumers may feel morally obligated to pay the debt or may want to settle with the creditor to avoid future collection attempts. Before making any payments, consumers should get legal advice from an attorney.
Understanding the statute of limitations for debt in Colorado is essential for consumers. By knowing the time limit for creditors to collect a debt, consumers can protect themselves from lawsuits and other collection practices. Additionally, consumers should be aware of the FDCPA and understand their rights when dealing with debt collectors.
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The statute of limitations for debt in Colorado varies according to the type of debt, ranging from three years for oral contracts to six years for credit card debt and written contracts. The Fair Debt Collection Practices Act regulates debt collection practices in Colorado, and third-party debt collectors are prohibited from using unfair, deceptive, or abusive practices to collect debts, such as calling excessively, threatening legal action they have no intention of taking, or depositing post-dated checks early. Consumers can file complaints with the Colorado Attorney General’s office or the Consumer Financial Protection Bureau if debt collectors violate the FDCPA.