HB 24-1380 Summary

• Debt collectors and collection agencies that are not creditors or debt buyers cannot sue consumers unless they include the original creditor's name in the case caption and have complete assignment authority with settlement powers.

• Credit services organizations must file annual notifications with the state administrator within 30 days of commencing business and by July 1 each year, paying a nonrefundable annual fee credited to the Consumer Credit Unit Cash Fund.

• The administrator may issue cease-and-desist orders requiring violators to refund unlawful charges and pay administrative penalties of up to $1,500 per violation.

• Debt management service providers must disclose to consumers all creditors expected to participate in repayment plans, those expected to participate without granting concessions, and those expected not to participate.

• The administrator must adopt rules by March 1, 2025 regarding debt settlement fees charged by service providers, ensuring the rules do not unduly limit consumer access to debt management services; most provisions take effect after a 90-day period following adjournment, with fee provisions effective March 1, 2025.