Collection Agency Licensing Requirements:

It is unlawful for any collection agency, debt collector, solicitor or collection manager to conduct any collection activities in the State of Colorado without first obtaining a license from the appropriate state agency.  The licensing regulations are a part of  Colorado's Fair Debt Collection Practices Act.  (C.R.S. 12-14-101 et seq.)  The Colorado Collection Agency Board, created pursuant to C.R.S. 12-14-116,   oversees and regulates all registration and licensing requirements.

While creditors who collect their own debts, and agencies collecting only commercial, business, investment, and agricultural debts generally may not be required to obtain a collection agency license, many others are covered under Colorado law.  (C.R.S. 12-14-102, 12-14-103(6)(b).)

The Colorado Fair Debt Collection Practices Act ("CFDCPA") regulates debt collection, and requires covered parties to obtain a collection agency license prior to soliciting clients or collecting debts in Colorado. Certain exclusions may apply, but the consumer protection provisions of the CFDCPA generally must be followed even by those who need not obtain a license, according to the Colorado Collection Agency Board.

Out of State Agencies. Out of state collection agencies must be licensed in Colorado and are subject to the CFDCPA if they solicit clients in Colorado or if they collect for clients who have a place of business in Colorado. Colorado has a limited "open borders" law, which may apply for debts incurred outside of Colorado, (2) collected using only interstate communications (telephone calls, letters, faxes) to collect these debts, (3) if you are are located in a licensing state which offers reciprocal treatment to the citizens of Colorado.

Colorado Office. Every licensee must maintain an office in the State of Colorado which is open to the public during normal business hours where payments may be made and which has access to consumer payment records and client account records. This  office may be shared with other businesses if certain requirements are met.

Collections Manager
Debt Collectors and Solicitors

Each collection agency must employ a collections manager to supervise debt collectors and be responsible for compliance with Colorado's collection laws. The collections manager may be an owner, partner, corporate officer, or other person. All Colorado   collection agencies must compell all  debt collectors and solicitors in their employ to register annually by each July 1.

A license fee of $300.00, completed registrations for debt collectors and solicitors, and fees of $12.00 per registration, and a  surety bond, savings account or certificate of deposit in the amount of $12,000-$20,000 round out some of the requirements. All of your questions will be answered in this extremely well-written concise summary of  Licensing Requirements provided by the Colorado Collection Agency Board.

State of Colorado
Department of Law
Collection Agency Board
     1525 Sherman 5th Floor
     Denver CO 80203
      Phone: (303) 866-4500
     FAX (303) 866-5691 or from the Colorado Attorney General's web site at http://www.state.co.us/gov_dir/dol/index.htm.

GALE A. NORTON, the First Woman to be Attorney General in the history of Colorado, also provides some electronic publications which explain the Colorado Consumer Protection Act, and include the text of that law. Consumer Protection

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