Collections Demand Letter - Colorado

COLLECTIONS DEMAND LETTER

State of Colorado

SECTION A: BUSINESS-TO-BUSINESS (B2B) COLLECTIONS

Note: The federal FDCPA and Colorado FDCPA generally do not apply to B2B collections. However, certain provisions may apply if the debt was originally a consumer debt. Consult counsel.

[________________________________]
Attorneys at Law
[________________________________]
[________________________________], Colorado [____]
Telephone: [________________________________]
Facsimile: [________________________________]
Email: [________________________________]
Colorado Attorney Registration No. [________________________________]

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[__/__/____]

[________________________________]
[________________________________]
[________________________________]
[________________________________], [____] [____]

Re: FINAL DEMAND FOR PAYMENT
Creditor: [________________________________]
Account/Invoice Number(s): [________________________________]
Total Amount Due: $[________________________________]
Days Past Due: [________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Creditor") regarding your outstanding and delinquent account. Despite prior demands and the passage of considerable time, you have failed to remit payment. This constitutes our FINAL DEMAND FOR PAYMENT before the commencement of legal proceedings.

I. STATEMENT OF ACCOUNT

II. INTEREST AND CHARGES

Under Colorado law (C.R.S. § 5-12-102), when money has been wrongfully withheld, interest accrues at the rate of eight percent (8%) per annum compounded annually, or at the contract rate if specified.

III. TOTAL AMOUNT DUE

IV. COLORADO LAW PROVISIONS

Statute of Limitations:
☐ General contract claims (C.R.S. § 13-80-101): Three (3) years from accrual.
☐ Liquidated debt / actions of debt (C.R.S. § 13-80-103.5): Six (6) years for actions on a liquidated debt or unliquidated determinable amount.
☐ UCC sale of goods (C.R.S. § 4-2-725): Four (4) years from tender of delivery.

This debt is well within the applicable limitations period. Our Client's claim is timely.

Interest: Under C.R.S. § 5-12-102, interest at 8% per annum compounded annually or at the contractual rate.

Attorney Fees: If the contract provides for attorney fee recovery, or under applicable statute, the prevailing party may recover reasonable attorney fees.

Post-Judgment Remedies Available Under Colorado Law:

• Wage garnishment: The lesser of 25% of disposable earnings or the amount exceeding 40 times the federal minimum hourly wage per week (C.R.S. § 13-54-104)
• Bank account levy and execution
• Real property liens (judgment lien attaches to all real property in the county upon recording)
• Personal property execution
• Debtor examination under C.R.C.P. 69

V. DEMAND

Pay the total sum of $[________________________________] within fifteen (15) calendar days of your receipt of this letter.

Payment shall be made by certified check or wire transfer payable to [________________________________] and delivered to:

[________________________________]
[________________________________]
[________________________________], Colorado [____]

If you wish to propose a payment arrangement, contact the undersigned within ten (10) calendar days. Any payment plan must be in writing and approved by our Client.

VI. CONSEQUENCES OF NON-PAYMENT

Failure to remit payment within the time specified will result in:

1. Immediate filing of a civil action in the appropriate Colorado District Court or County Court seeking judgment for the full amount due, plus accruing interest, attorney fees, and costs;
2. Pursuit of all post-judgment collection remedies including wage garnishment, bank levies, property liens, and execution on assets;
3. Reporting to credit bureaus to the extent permitted by law; and
4. Recovery of all litigation costs and attorney fees to the fullest extent permitted by contract and law.

Govern yourself accordingly.

[________________________________]

By: _______________________________
[________________________________]
Colorado Attorney Registration No. [________________________________]

SECTION B: BUSINESS-TO-CONSUMER (B2C) COLLECTIONS

FEDERAL FDCPA AND COLORADO FDCPA COMPLIANCE REQUIRED

This section is designed for use when collecting consumer debts and must comply with the federal Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.), CFPB Regulation F (12 C.F.R. Part 1006), and the Colorado Fair Debt Collection Practices Act (C.R.S. § 5-16-101 et seq.).

[________________________________]
[________________________________]
[________________________________], Colorado [____]
Telephone: [________________________________]

[__/__/____]

[________________________________]
[________________________________]
[________________________________], Colorado [____]

Account/Reference Number: [________________________________]

NOTICE OF DEBT AND VALIDATION RIGHTS

THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

I. DEBT INFORMATION

Itemization of Amount Owed (Required under Regulation F, 12 C.F.R. § 1006.34)

II. YOUR RIGHTS UNDER FEDERAL AND COLORADO LAW

Federal Rights Under the FDCPA (15 U.S.C. § 1692g) and Regulation F:

Unless you notify this office within thirty (30) days after receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within the thirty-day period that the debt, or any portion thereof, is disputed, this office will obtain verification of the debt or a copy of a judgment against you and mail a copy of such verification or judgment to you. Upon your written request within the thirty-day period, this office will provide you with the name and address of the original creditor, if different from the current creditor.

Colorado Rights Under the Colorado FDCPA (C.R.S. § 5-16-101 et seq.):

☐ A debt collector may not use threats, coercion, or criminal means to collect a debt (C.R.S. § 5-16-108)
☐ A debt collector may not use fraudulent, deceptive, or misleading representations (C.R.S. § 5-16-109)
☐ A debt collector may not engage in unfair or unconscionable practices (C.R.S. § 5-16-110)
☐ A debt collector must be licensed with the Colorado Collection Agency Board
☐ Any legal action on consumer debt must be filed in the judicial district where the consumer resides or where the real property is located (C.R.S. § 5-16-111)
☐ Violations of the Colorado FDCPA may result in actual damages plus additional damages up to $1,000 (C.R.S. § 5-16-113)

III. COLORADO EXEMPTIONS FROM EXECUTION

Under Colorado law, the following property is exempt from execution on a judgment:

IV. PAYMENT OPTIONS

☐ Full payment of $[________________________________] within thirty (30) days
☐ Payment plan - contact us to discuss arrangements
☐ Settlement offer - contact us to discuss a potential resolution

Payment should be made to:

[________________________________]
[________________________________]
[________________________________], Colorado [____]

V. DISPUTE AND RESPONSE FORM

☐ I dispute this debt in its entirety and request verification
☐ I dispute the following portion of this debt: $[________________________________]
☐ I request the name and address of the original creditor
☐ I request that you cease further communications (note: we may still pursue legal remedies)
☐ I am enclosing payment in the amount of $[________________________________]
☐ I wish to discuss a payment arrangement

Name: [________________________________]
Signature: _______________________________ Date: [__/__/____]
Address: [________________________________]

☐ TIME-BARRED DEBT NOTICE (Use only if the statute of limitations has expired):

The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it. If you do not pay the debt, [creditor name] may continue to report it to the credit reporting companies as unpaid for as long as the law permits this reporting. This notice is required by law.

[________________________________]

Sources and References

• C.R.S. § 5-16-101 et seq. - Colorado Fair Debt Collection Practices Act
• C.R.S. § 5-16-108 - Prohibited threats and coercion
• C.R.S. § 5-16-109 - Fraudulent and misleading representations prohibited
• C.R.S. § 5-16-110 - Unfair or unconscionable practices prohibited
• C.R.S. § 5-16-111 - Legal actions by collection agencies (venue requirements)
• C.R.S. § 5-16-113 - Penalties for violations
• C.R.S. § 13-80-101 - General limitation of actions (three years)
• C.R.S. § 13-80-103.5 - Liquidated debt limitation (six years)
• C.R.S. § 5-12-102 - Statutory interest (8% per annum compounded annually)
• C.R.S. § 13-54-104 - Wage garnishment limitations
• C.R.S. § 38-41-201 - Homestead exemption ($75,000)
• C.R.S. § 13-54-102 - Personal property exemptions
• 15 U.S.C. § 1692 et seq. - Federal Fair Debt Collection Practices Act
• 12 C.F.R. Part 1006 - CFPB Regulation F (FDCPA implementing rules)