C.R.S. § 5-20-101 Short title
5-20-101. Short title. The short title of this article 20 is the "Colorado Student Loan Equity Act".
Colorado Student Loan Equity
C.R.S. tit. 5, art. 20
in effectC.R.S. § 5-20-102 Scope of article - residence of debtor
5-20-102. Scope of article - residence of debtor. (1) This part 1 applies to any person engaged in servicing a student education loan owed by an individual who is a resident of this state. For the purposes of this article 20, the residence of an individual is the address given by the individual as the individual's residence to the creditor or to the student loan servicer. Until an individual notifies the creditor or the student loan servicer of a new or different address, the given address is presumed to be unchanged.
(2) Part 2 of this article 20 applies to private education creditors and collection agencies in connection with student education loans that are not made, insured, or guaranteed under federal law and that are used for postsecondary education.
C.R.S. § 5-20-103 Definitions
5-20-103. Definitions. As used in this article 20, unless the context otherwise requires:
(1) "Administrator" means the administrator designated in section 5-6-103.
(2) "Consumer reporting agency" has the meaning established in section 5-18-103 (4).
(3) "Education expenses" means any expense related, in whole or in part, expressly to financing postsecondary education, regardless of whether the debt incurred by a student to pay those expenses is owed to the provider of postsecondary education whose school, program, or facility the student attends.
(4) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(5) "Servicing" means:
(a) (I) Receiving any scheduled periodic payments from a borrower or notification of such payments; and
(II) Applying payments to the borrower's account pursuant to the terms of a student education loan or of the contract governing the servicing;
(b) During a period when no payment is required on a student education loan:
(I) Maintaining account records for the student education loan; and
(II) Communicating with the borrower regarding the student education loan, on behalf of the loan's holder; or
(c) Interactions with a borrower, including activities to help prevent default on obligations arising from student education loans, conducted to facilitate the activities described in subsection (5)(a) or (5)(b) of this section.
(6) "Student education loan":
(a) Means a loan that is made, insured, or guaranteed under Title IV of the federal "Higher Education Act of 1965", 20 U.S.C. sec. 1070 et seq., as amended, or that is extended to a student loan borrower for the purpose of funding, in whole or in part, education expenses. The term includes a loan that is extended in order to refinance or consolidate a student loan borrower's existing student education loans.
(b) Does not include a loan under an open-end credit plan, as defined in Regulation Z, 12 CFR 1026.2 (a)(20), or a loan that is secured by real property, regardless of the purpose for the loan.
(7) "Student loan borrower" or "borrower" means:
(a) An individual who has received or agreed to pay a student education loan; and
(b) For purposes of this part 1 only, an individual who shares responsibility with the individual specified in subsection (7)(a) of this section for repaying the student education loan.
(8) "Student loan servicer":
(a) Means a person that:
(I) (A) Receives any scheduled periodic payments from a student loan borrower or notification of the payments; and
(B) Applies payments to the student loan borrower's account pursuant to the terms of the student education loan or of the contract governing the servicing;
(II) During a period when no payment is required on a student education loan:
(A) Maintains account records for the loan; and
(B) Communicates with the student loan borrower regarding the loan, on behalf of the loan's holder; or
(III) Interacts with a student loan borrower, including activities to help prevent default on obligations arising from education loans, conducted to facilitate the activities described in subsection (8)(a)(I) or (8)(a)(II) of this section;
loan:
(A) Maintains account records for the loan; and
(B) Communicates with the student loan borrower regarding the loan, on behalf of the loan's holder; or
(III) Interacts with a student loan borrower, including activities to help prevent default on obligations arising from education loans, conducted to facilitate the activities described in subsection (8)(a)(I) or (8)(a)(II) of this section;
(b) Does not include:
(I) A bank, trust company, or industrial loan company doing business under the authority of, or in accordance with, a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States that is authorized to transact business in this state;
(II) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this state;
(III) A savings and loan association, savings bank, or credit union organized under the laws of this or any other state that is authorized to transact business in this state;
(IV) Except as otherwise provided in section 5-20-203, a collection agency, as defined in section 5-16-103 (3), whether or not licensed pursuant to section 5-16-120, whose student loan debt collection business involves collecting or attempting to collect on defaulted student loans; except that a collection agency that also services nondefaulted student loans as part of its business is a student loan servicer. For the purpose of this subsection (8)(b)(IV), "defaulted student loans" means federal student loans for which no payment has been received for two hundred seventy days or more or private education loans in default according to the terms of the loan documents. This subsection (8)(b)(IV) does not exempt a collection agency from complying with the requirements of the "Colorado Fair Debt Collection Practices Act", article 16 of this title 5.
(V) An agency, instrumentality, or political subdivision of this state, but only to the extent that servicing is performed through section 23-1-112 and pursuant to article 3.1 of title 23. This subsection (8)(b)(V) does not exempt a nongovernmental entity that performs student loan servicing pursuant to a contract with an agency, instrumentality, or political subdivision of the state.
C.R.S. § 5-20-104 Student loan ombudsperson - report - fund - rules
5-20-104. Student loan ombudsperson - report - fund - rules. (1) The administrator shall designate, support, and maintain a student loan ombudsperson to provide timely assistance to student loan borrowers. The student loan ombudsperson, in consultation with the administrator, shall:
(a) Complaints. Receive, review, and attempt to resolve complaints from student loan borrowers, including in collaboration with institutions of higher education, student loan servicers, and any other participants in student loan lending, including originators servicing their own student education loans;
(b) Data. Compile and analyze data on student loan borrower complaints as described in subsection (1)(a) of this section;
(c) Assistance. Assist student loan borrowers in understanding their rights and responsibilities under the terms of student education loans;
(d) Information. Provide information to the public, agencies, legislators, and others regarding the problems and concerns of student loan borrowers and make recommendations for resolving those problems and concerns;
(e) Laws, rules, and policies. Analyze and monitor the development and implementation of federal, state, and local laws, ordinances, regulations, rules, and policies relating to student loan borrowers and recommend any necessary changes;
(f) Student loan history. Review the complete student education loan history for a student loan borrower who provides written consent for the review;
(g) Availability. Disseminate information concerning the availability of the student loan ombudsperson to assist student loan borrowers and potential student loan borrowers, including disseminating the information to institutions of higher education, student loan servicers, and any other participants in student education loan lending with any servicing concerns;
(h) Education course. Establish and maintain a student loan borrower education course within existing resources that includes educational presentations and materials regarding student education loans. The course must include at least key loan terms, documentation requirements, monthly payment obligations, income-based repayment options, loan forgiveness, and disclosure requirements.
(i) Other actions. Take any other actions necessary to fulfill the duties of the student loan ombudsperson as set forth in this section.
(2) Repealed.
(3) Student loan ombudsperson and student loan servicer licensing fund. (a) The student loan ombudsperson and student loan servicer licensing fund, referred to in this section as the "fund", is hereby created in the state treasury. The fund consists of licensing and investigation fees collected pursuant to sections 5-20-107 and 5-20-203 (2)(a), civil penalties collected pursuant to sections 5-20-114, 5-20-117, and 5-20-203 (4), any other money required by law to be deposited in the fund, and any other money that the general assembly may appropriate or transfer to the fund.
(b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.
(c) All money held in the fund is continuously appropriated to the department of law. The administrator shall expend money held in the fund to administer this part 1.
C.R.S. § 5-20-105 License required
5-20-105. License required. On or after January 31, 2020, a person shall not act as a student loan servicer, directly or indirectly, without first obtaining a student loan servicing license from the administrator pursuant to this part 1.
C.R.S. § 5-20-106 Licensure of student loan servicers - definition
5-20-106. Licensure of student loan servicers - definition. (1) Automatic issuance of license for federal student loan servicing contractors. (a) A person seeking to act within this state as a student loan servicer is exempt from the application procedures described in subsection (2) of this section upon a determination by the administrator that the person is a party to a contract awarded by the United States secretary of education under 20 U.S.C. sec. 1078, 1087f, or 1087hh, as amended. The administrator shall prescribe the procedure to document eligibility for the exemption.
(b) Automatic license. With regard to a person deemed exempt by this subsection (1), the administrator shall:
(I) Automatically issue a license upon payment of the fees required by section 5-20-107 (1)(a);
(II) Automatically issue a renewal license upon payment of the fees required by section 5-20-107 (1)(b); and
(III) Deem the person to have met all requirements set forth in subsection (2) of this section.
(c) Procedural exemptions. A person issued a license pursuant to this subsection (1) is exempt from subsections (3) to (9) and (11) of this section. A person issued a license pursuant to this subsection (1) shall comply with the record requirements in subsection (10) of this section except to the extent that the requirements are inconsistent with federal law.
(d) Notice. A person issued a license pursuant to this subsection (1) shall provide the administrator with written notice within seven days after notification of the expiration, revocation, or termination of any contract awarded by the United States secretary of education under 20 U.S.C. sec. 1087f. The person has thirty days after notification to satisfy all requirements established under subsection (2) of this section in order to continue to act within this state as a student loan servicer. At the expiration of the thirty-day period, if the person seeking to act within this state as a student loan servicer has not satisfied the requirements of subsection (2) of this section, the administrator shall summarily suspend any license granted to the person under this section in accordance with section 24-4-104 (4); except that the full investigation requirement specified in section 24-4-104 (4)(a) does not apply.
(e) Preservation of authorities. With respect to student loan servicing not conducted pursuant to a contract awarded by the United States secretary of education under 20 U.S.C. sec. 1087f, nothing in this section prevents the administrator from issuing, or filing a civil action for, an order to temporarily or permanently prohibit or bar any person from acting as a student loan servicer or violating applicable law.
(2) Other student loan servicers. (a) A person seeking to act within this state as a student loan servicer, other than a person deemed exempt by the administrator pursuant to subsection (1) of this section, must apply to the administrator for an initial license in the form the administrator prescribes. The application must be accompanied by:
(I) A financial statement prepared by a certified public accountant or a public accountant, a general partner if the applicant is a partnership, a corporate officer if the applicant is a corporation, or a member duly authorized to execute financial statements if the applicant is a limited liability company or association;
(II) Information regarding the history of criminal convictions of the following:
(A) The applicant;
(B) Partners of the applicant, if the applicant is in a partnership;
(C) Members of the applicant, if the applicant is a limited liability company or association; or
(D) Officers, directors, and principal employees of the applicant, if the applicant is a corporation.
ity company or association;
(II) Information regarding the history of criminal convictions of the following:
(A) The applicant;
(B) Partners of the applicant, if the applicant is in a partnership;
(C) Members of the applicant, if the applicant is a limited liability company or association; or
(D) Officers, directors, and principal employees of the applicant, if the applicant is a corporation.
(b) The information submitted pursuant to subsection (2)(a)(II) of this section must be sufficient, as determined by the administrator, to make the findings required under this section.
(3) Investigation of applicant. (a) Upon the filing of an application for an initial license and the payment of the fees for licensing and investigation pursuant to section 5-20-107, the administrator shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant.
(b) The administrator may issue a license pursuant to this section if the administrator finds that:
(I) The applicant's financial condition is sound;
(II) The applicant's business will be conducted honestly, fairly, equitably, carefully, and efficiently within the purposes and intent of this part 1 and in a manner commanding the confidence and trust of the community;
(III) If the applicant is:
(A) An individual, the individual is in all respects properly qualified and of good character;
(B) A partnership, each partner is in all respects properly qualified and of good character;
(C) A limited liability company or association, each member is in all respects properly qualified and of good character; or
(D) A corporation, the president, chair of the executive committee, senior officer responsible for the corporation's business, chief financial officer or any other person who performs similar functions as determined by the administrator, each director, each trustee, and each shareholder owning ten percent or more of each class of the securities of the corporation are in all respects properly qualified and of good character;
(IV) No person acting on behalf of the applicant knowingly has made an incorrect statement of a material fact in the application or in any report or statement made pursuant to this part 1; and
(V) The applicant has met any other requirements as determined by the administrator.
(4) License expiration. A license issued pursuant to this section expires each January 31 unless renewed or earlier surrendered, suspended, or revoked pursuant to this part 1. No later than fifteen days after a licensee ceases to engage in the business of servicing in this state for any reason, including a business decision to terminate operations in this state, license revocation, bankruptcy, or voluntary dissolution, the licensee shall provide written notice of surrender to the administrator and shall surrender to the administrator its license for each location in which the licensee has ceased to engage in servicing. The written notice of surrender must identify the location where the records of the licensee will be stored and the name, address, and telephone number of a person authorized to provide access to the records. The surrender of a license does not reduce or eliminate the licensee's civil or criminal liability arising from acts or omissions occurring before the surrender of the license, including any administrative actions undertaken by the administrator to revoke or suspend a license, assess a civil penalty, order restitution, or exercise any other authority provided to the administrator.
to the records. The surrender of a license does not reduce or eliminate the licensee's civil or criminal liability arising from acts or omissions occurring before the surrender of the license, including any administrative actions undertaken by the administrator to revoke or suspend a license, assess a civil penalty, order restitution, or exercise any other authority provided to the administrator.
(5) License renewal - annual report. (a) A license issued pursuant to this section may be renewed for the ensuing twelve-month period upon the filing of an application containing all required records and fees, including renewal fees as established by the administrator in accordance with section 5-20-107. A renewal application must be filed on or before January 31 of the year in which the license expires. The administrator may establish a late fee for any renewal applications submitted after January 31.
(b) If an application for a renewal license has been filed with the administrator on or before the date the license expires, the license sought to be renewed continues in effect until the issuance by the administrator of the renewal license applied for or until the administrator has notified the licensee in writing of the administrator's refusal to issue the renewal license together with the grounds upon which the refusal is based.
(c) The administrator may refuse to issue a renewal license on any ground on which the administrator may refuse to issue an initial license.
(d) Along with the application for renewal, every licensee shall file with the administrator, in the form and manner determined by the administrator, an annual report concerning loans serviced by the licensee. Information included in an annual report filed pursuant to this subsection (5)(d) is confidential and may be published only in aggregate form, with no personal identifying information included.
(6) Dishonored check. If a check filed with the administrator to pay a license, investigation, or renewal fee under this section is dishonored, the administrator shall summarily suspend the license or the renewal license that has been issued but is not yet effective in accordance with section 24-4-104 (4); except that the full investigation requirement specified in section 24-4-104 (4)(a) does not apply. The administrator shall give the licensee notice of the summary suspension pending proceedings for revocation or refusal to renew and an opportunity for a hearing on the actions in accordance with section 5-20-113.
(7) Update application information. An applicant or licensee under this section shall notify the administrator, in writing, of any change in the information provided in its initial application for a license or its most recent renewal application for a license, as applicable, not later than ten business days after the occurrence of the event that results in the change.
(8) Incomplete application. The administrator may consider an application for a license under this section abandoned if the applicant fails to respond to any request for information required under this part 1 or any rules adopted pursuant to this part 1, as long as the administrator notifies the applicant, in writing, that the application will be considered abandoned if the applicant fails to submit the information within sixty days after the date on which the request for information was made. Abandonment of an application pursuant to this subsection (8) does not preclude the applicant from submitting a new application for a license under this part 1.
ong as the administrator notifies the applicant, in writing, that the application will be considered abandoned if the applicant fails to submit the information within sixty days after the date on which the request for information was made. Abandonment of an application pursuant to this subsection (8) does not preclude the applicant from submitting a new application for a license under this part 1.
(9) Change of license notification. (a) A licensee under this section shall not act within this state as a student loan servicer under any name or at any place of business other than those named in the license. A licensee shall give prior written notice to the administrator of a change of business location. A licensee shall not operate more than one place of business under the same license, but the administrator may issue more than one license to a licensee that complies with this part 1 as to each license. A license is not transferable or assignable.
(b) (I) Subject to rules adopted by the administrator, nothing in subsection (9)(a) of this section prohibits a licensee from permitting its employees to work from a remote location so long as the licensee:
(A) Ensures that no in-person customer interactions are conducted at the remote location and does not designate the remote location to consumers as a business location;
(B) Maintains appropriate safeguards for licensee and consumer data, information, and records, including the use of secure virtual private networks, also known as "VPNs", where appropriate;
(C) Employs appropriate risk-based monitoring and oversight processes of work performed from a remote location and maintains records of the monitoring and oversight processes;
(D) Ensures consumer information and records are not maintained at a remote location;
(E) Ensures consumer and licensee information and records remain accessible and available for regulatory oversight and examination; and
(F) Provides appropriate employee training to ensure employees working from a remote location keep all conversations about and with consumers that are conducted from the remote location confidential, as if conducted from a commercial location, and to ensure that employees working at a remote location work in an environment that is conducive and appropriate to ensuring privacy and confidential conversations.
(II) As used in this subsection (9)(b), "remote location" means a private residence of an employee of a licensee or another location selected by the employee and approved by the licensee.
(10) Records retention - records request. A student loan servicer shall maintain adequate records of each student education loan transaction and all communications in connection with student education loan servicing for not less than two years after the final payment on the student education loan or the assignment of the student education loan, whichever occurs first, except as otherwise required by federal law, a federal student education loan agreement, or a contract between the federal government and a licensee. Upon request by the administrator, a student loan servicer shall make the records available or shall send the records to the administrator by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt, not later than five business days after requested by the administrator. Upon a licensee's request, the administrator may grant the licensee additional time to make the records available or to send the records to the administrator.
nd the records to the administrator by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt, not later than five business days after requested by the administrator. Upon a licensee's request, the administrator may grant the licensee additional time to make the records available or to send the records to the administrator.
(11) License suspension and revocation - refusal to renew. (a) The administrator may suspend, revoke, annul, limit, modify, or refuse to renew a license issued pursuant to subsection (2) of this section or take any other action in accordance with this part 1 if the administrator finds one or more of the following:
(I) The licensee has violated any provision of this part 1 or any rule lawfully adopted or order lawfully issued pursuant to and within the authority of this part 1; or
(II) Any fact or condition exists that, if it had existed at the time of the original application for the license, clearly would have warranted a denial of the license.
(b) An abatement of the license fee may not be made if the license is surrendered, revoked, or suspended.
C.R.S. § 5-20-107 License and investigation fees
5-20-107. License and investigation fees. (1) A person applying for licensure under section 5-20-106 (1) or (2) shall pay the following nonrefundable fees established by the administrator:
(a) Initial license fee of at least one thousand dollars;
(b) Annual renewal fee of at least one thousand dollars; and
(c) Investigation fee.
(2) The administrator shall determine the amount of the fees required in this section and may periodically reduce or increase the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3) and (4), to reduce the uncommitted reserves of the fund created in section 5-20-104 (3). The fund is subject to the maximum reserve established in section 24-75-402.
C.R.S. § 5-20-108 Affirmative acts required of student loan servicers - definitions
5-20-108. Affirmative acts required of student loan servicers - definitions. (1) Except as otherwise provided in federal law, federal student education loan agreements, or a contract between the federal government and a student loan servicer, a student loan servicer shall take the actions specified in this section.
(2) (a) A student loan servicer shall respond to a written inquiry from a student loan borrower, the representative of a student loan borrower, or the student loan ombudsperson within ten business days after receipt of the request and, within thirty business days after receipt of the request, provide information relating to the request and, if applicable, the action the student loan servicer will take to correct the account or an explanation for the student loan servicer's position that the borrower's account is correct.
(b) The thirty-day period described in subsection (2)(a) of this section may be extended for not more than fifteen days if, before the end of the thirty-day period, the student loan servicer notifies the borrower, the borrower's representative, or the ombudsperson, as applicable, of the extension and the reasons for the delay in responding.
(c) After receipt of a written request related to a dispute on a borrower's payment on a student education loan, a student loan servicer shall not, for the sixty days following receipt, furnish adverse information to a consumer reporting agency regarding a payment that is the subject of the written inquiry.
(3) (a) Except as provided in federal law or required by a student loan agreement, a student loan servicer shall inquire of a borrower how to apply an overpayment to a student education loan. A borrower's direction on how to apply an overpayment to a student education loan stays in effect for any future overpayments during the term of a student education loan until the borrower provides different directions.
(b) For purposes of this subsection (3), "overpayment" means a payment on a student education loan in excess of the monthly amount due from a borrower on a student education loan, also commonly referred to as a prepayment.
(4) (a) A student loan servicer shall apply partial payments in a manner that minimizes late fees and negative credit reporting. Where loans on a borrower's student loan account have an equal level of delinquency, a student loan servicer shall apply partial payments to satisfy as many individual loan payments as possible on a borrower's account.
(b) For purposes of this subsection (4), "partial payment" means a payment on a student loan account that contains multiple individual loans in an amount less than the amount necessary to satisfy the outstanding payment due on all loans in the student loan account, also commonly referred to as an underpayment.
(5) In the event of the sale, assignment, or other transfer of the servicing of a student education loan that results in a change in the identity of the person to whom a student loan borrower is required to send payments or direct any communication concerning the student education loan, the following provisions apply:
oans in the student loan account, also commonly referred to as an underpayment.
(5) In the event of the sale, assignment, or other transfer of the servicing of a student education loan that results in a change in the identity of the person to whom a student loan borrower is required to send payments or direct any communication concerning the student education loan, the following provisions apply:
(a) As a condition of a sale, an assignment, or any other transfer of the servicing of a student education loan, a student loan servicer shall require the new student loan servicer to honor all benefits originally represented as available to a student loan borrower during the repayment of the student education loan and preserve the availability of the benefits, including any benefits for which the student loan borrower has not yet qualified. If a student loan servicer is not also the loan holder or is not acting on behalf of the loan holder, the student loan servicer satisfies the requirement established by this subsection (5)(a) by providing the new student loan servicer with information necessary for the new student loan servicer to honor all benefits originally represented as available to a student loan borrower during the repayment of the student education loan and preserve the availability of the benefits, including any benefits for which the student loan borrower has not yet qualified.
(b) A student loan servicer shall transfer to the new student loan servicer all records regarding the student loan borrower, the account of the student loan borrower, and the student education loan of the student loan borrower.
(c) The records required under subsection (5)(b) of this section include the repayment status of the student loan borrower and any benefits associated with the student education loan of the student loan borrower.
(d) The student loan servicer shall complete the transfer of records required under subsection (5)(b) of this section within forty-five days after the sale, assignment, or other transfer of the servicing of a student education loan.
(e) The parties shall notify affected student loan borrowers of the sale, assignment, or other transfer of the servicing of a student education loan at least seven days before the next payment on the loan is due. The notice must include:
(I) The identity of the new student loan servicer;
(II) The effective date of the transfer of the student loan borrower's student education loan to the new student loan servicer;
(III) The date on which the existing student loan servicer will no longer accept payments; and
(IV) The contact information for the new student loan servicer.
(6) A student loan servicer that services a student education loan shall adopt policies and procedures to verify that the student loan servicer has received all records regarding the student loan borrower, the account of the student loan borrower, and the student education loan of the student loan borrower, including the repayment status of the student loan borrower and any benefits associated with the student education loan of the student loan borrower.
C.R.S. § 5-20-109 Prohibited acts of student loan servicers
5-20-109. Prohibited acts of student loan servicers. (1) A student loan servicer shall not:
(a) Directly or indirectly employ a scheme, a device, or artifice to defraud or mislead student loan borrowers;
(b) Engage in an unfair or deceptive practice toward any person or misrepresent or omit any material information in connection with the servicing of a student education loan, including misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student education loan, the terms and conditions of the loan agreement, or the student loan borrower's obligations under the loan;
(c) Obtain property by fraud or misrepresentation;
(d) Misapply student education loan payments to the outstanding balance of a student education loan;
(e) Provide inaccurate information to a consumer reporting agency;
(f) Fail to report both the favorable and unfavorable payment history of a student loan borrower to a consumer reporting agency at least annually if the student loan servicer regularly reports information to a consumer reporting agency;
(g) Refuse to communicate with an authorized representative of a student loan borrower who provides a written authorization signed by the student loan borrower; except that the student loan servicer may adopt procedures reasonably related to verifying that the representative is in fact authorized to act on behalf of the student loan borrower;
(h) Make any false statement or omit any material fact in connection with information or reports filed with a governmental agency or in connection with an investigation conducted by the administrator or another governmental agency; or
(i) Except as otherwise provided in federal law, federal student loan agreements, or a contract between the federal government and a student loan servicer, fail to properly evaluate a student loan borrower for an income-based or other student loan repayment program or for eligibility for a public service loan forgiveness program before placing the student loan borrower in forbearance or default, if an income-based repayment or other program is available to the student loan borrower.
C.R.S. § 5-20-110 Powers and duties of the administrator - rules
5-20-110. Powers and duties of the administrator - rules. (1) The administrator may conduct investigations and examinations as follows:
(a) For purposes of initial licensing, license renewal, license suspension, license revocation or termination, or general or specific inquiry or investigation to determine compliance with this article 20, the administrator may access, receive, and use any records or information belonging to a licensee or person under examination, including criminal, civil, and administrative history information; personal history and experience information, including independent credit reports obtained from a consumer reporting agency described in section 603 (p) of the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681a, as amended; and any other records or information the administrator considers relevant to the inquiry or investigation regardless of the location, possession, control, or custody of the records or information.
(b) For the purposes of investigating violations or complaints arising under this article 20 or for the purposes of examination, the administrator may review, investigate, or examine any licensee or person subject to this article 20 as often as necessary in order to carry out the purposes of this article 20. The administrator may direct, subpoena, or order the attendance of and examine under oath any person whose testimony may be required about the student education loan or the business or subject matter of an examination or investigation and may direct, subpoena, or order the person to produce records the administrator considers relevant to the inquiry.
(c) (I) In making an examination or investigation authorized by this section, the administrator may control access to any records of the licensee or person under examination or investigation. The administrator may take possession of the records or place a person in exclusive charge of the records in the place where they are usually kept.
(II) During the period of administrator control pursuant to this subsection (1)(c), a person may not remove or attempt to remove any of the records except pursuant to a court order or with the consent of the administrator. Unless the administrator has reasonable grounds to believe that the records of the licensee or person have been, or are at risk of being, altered or destroyed for purposes of concealing a violation of this article 20, the licensee or owner of the records may have access to the records as necessary to conduct its ordinary business affairs.
(2) In order to carry out the purposes of this section, the administrator may:
(a) Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;
(b) Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and records or information obtained under this section;
(c) Use, hire, contract for, or employ publicly or privately available analytical systems, methods, or software to examine or investigate the licensee or person subject to this article 20;
(d) Accept and rely on examination or investigation reports made by other government officials within or outside this state; and
m methods or procedures, and records or information obtained under this section;
(c) Use, hire, contract for, or employ publicly or privately available analytical systems, methods, or software to examine or investigate the licensee or person subject to this article 20;
(d) Accept and rely on examination or investigation reports made by other government officials within or outside this state; and
(e) Accept audit reports made by an independent certified public accountant of the licensee or person subject to this article 20 in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in a report of examination, report of investigation, or other writing of the administrator.
(3) A person subject to investigation or examination under this section shall not knowingly withhold, abstract, remove, mutilate, or destroy any records or other information relating to information regulated under this article 20.
(4) Whenever it appears to the administrator that a person has violated, is violating, or is about to violate a provision of this article 20 or a rule adopted pursuant to this article 20 or that a licensee or an owner, director, officer, member, partner, shareholder, trustee, employee, or agent of the licensee has committed fraud, engaged in dishonest activities, or made a misrepresentation, the administrator may take action against the person or licensee in accordance with this article 20.
(5) The administrator shall adopt rules as necessary to implement this article 20.
C.R.S. § 5-20-111 Compliance with federal law
5-20-111. Compliance with federal law. A student loan servicer shall comply with all applicable federal laws and regulations relating to servicing, including the federal "Truth in Lending Act", 15 U.S.C. secs. 1601 to 1667f, as amended, and the regulations adopted pursuant to that act. In addition to any other remedies provided by law, a violation of that act or regulations adopted pursuant to that act is a violation of this part 1 and a basis upon which the administrator may take enforcement action pursuant to this part 1.
C.R.S. § 5-20-112 Civil action
5-20-112. Civil action. (1) A violation of this part 1 is a deceptive trade practice within the meaning of section 6-1-105.
(2) A student loan servicer who fails to comply with any requirement imposed under this part 1 with respect to a student loan borrower is liable in an amount equal to the sum of:
(a) Any actual damages sustained by the student loan borrower as a result of the failure;
(b) A monetary award equal to three times the total amount the student loan servicer collected from the student loan borrower in violation of this part 1;
(c) Punitive damages as the court may allow; and
(d) In the case of any successful action by a student loan borrower to enforce the liability set out in this section, the costs of the action, together with reasonable attorney fees as determined by the court.
(3) The remedies provided in this section are not the exclusive remedies available to a student loan borrower.
C.R.S. § 5-20-113 Application of administrative procedures - provisions
5-20-113. Application of administrative procedures - provisions. Except as otherwise provided, sections 24-4-102 to 24-4-106 apply to and govern all rules promulgated and all administrative action taken by the administrator pursuant to this part 1; except that section 24-4-104 (3) does not apply to any such action.
C.R.S. § 5-20-114 Administrative enforcement orders
5-20-114. Administrative enforcement orders. (1) After notice and hearing, the administrator may order a student loan servicer or a person acting in the student loan servicer's behalf to cease and desist from engaging in violations of this part 1 or any rule lawfully adopted or order lawfully issued pursuant to this part 1. The order issued by the administrator may also require the student loan servicer or person to make refunds to persons of unlawful charges under this part 1 and an administrative penalty of up to one thousand five hundred dollars per violation, all or part of which may be specifically designated for consumer and creditor educational purposes.
(2) A respondent aggrieved by an order of the administrator may obtain judicial review of the order in the Colorado court of appeals. The administrator may obtain an order of the court for enforcement of the administrator's order in the district court under section 24-4-106. All proceedings under this section are governed by sections 24-4-105 and 24-4-106.
C.R.S. § 5-20-115 Assurance of discontinuance
5-20-115. Assurance of discontinuance. If it is claimed that a person has violated this part 1, the administrator may accept an assurance in writing that the person will not engage in the conduct in the future. The assurance may also require the person to make refunds to persons of unlawful charges under this part 1, pay a penalty authorized in section 5-20-114 (1), all or part of which may be specifically designated for consumer and creditor educational purposes, and reimburse the administrator for the administrator's reasonable costs incurred in investigating the conduct. If a person giving an assurance of discontinuance fails to comply with its terms, the assurance is evidence that prior to the assurance the person engaged in the conduct described in the assurance.
C.R.S. § 5-20-116 Injunctions
5-20-116. Injunctions. The administrator may bring a civil action to restrain a person from violating this part 1 or rules promulgated pursuant to this part 1 and for other appropriate relief, including such orders or judgments as may be necessary to completely compensate or restore any person affected by the violation to the person's original position. The administrator may also apply for a temporary restraining order or a preliminary injunction against a respondent pending final determination of proceedings. No bond or other security is required of the administrator before relief under this section may be granted.
C.R.S. § 5-20-117 Civil actions by the administrator
5-20-117. Civil actions by the administrator. The administrator may bring a civil action against a student loan servicer for any violation of this part 1. An action may relate to transactions with more than one person. The court may order a student loan servicer to refund to a person any charges collected in violation of this part 1 and may also assess civil penalties against the student loan servicer as set forth in section 5-20-112 (2). If the administrator prevails in an action brought under this section, the administrator may recover reasonable costs in investigating and bringing the action and may recover reasonable attorney fees.
C.R.S. § 5-20-118 Limitations
5-20-118. Limitations. Notwithstanding article 80 of title 13, all actions brought under this part 1 must be commenced within four years after the date on which any violation of this part 1 occurred or the date on which the last in a series of such acts or practices occurred or within four years after the plaintiff discovered or in the exercise of reasonable diligence should have discovered the occurrence of a violation of this part 1; except that the period of limitation provided in this section may be extended for a period of one year if the plaintiff proves that failure to timely commence the action was caused by the defendant engaging in conduct calculated to induce the plaintiff to refrain from or postpone the commencement of the action.
C.R.S. § 5-20-119 Confidential information
5-20-119. Confidential information. (1) The administrator shall not make public the name or identity of a person whose acts or conduct the administrator investigates or examines pursuant to this part 1 or the facts disclosed in the investigation or examination.
(2) The administrator may disclose license application and renewal records provided to the administrator and other contents of license records maintained pursuant to this part 1, but the administrator shall not make public the confidential information contained in the records.
(3) The restrictions on the disclosure of information in subsections (1) and (2) of this section do not apply to disclosures by the administrator in actions or administrative enforcement proceedings pursuant to this part 1.
C.R.S. § 5-20-201 Scope of part - construction with other laws - legislative declaration
5-20-201. Scope of part - construction with other laws - legislative declaration. The general assembly finds, determines, and declares that this part 2 is enacted to address issues not fully addressed through the regulation of student loan servicers under part 1 of this article 20. This part 2 is intended to complement, and should be construed in harmony with, part 1 of this article 20 to provide seamless and consistent protection to borrowers whenever possible.
C.R.S. § 5-20-202 Definitions
5-20-202. Definitions. As used in this part 2, unless the context otherwise requires:
(1) "Collection agency" means a collection agency, as defined in section 5-16-103 (3), that collects or attempts to collect, directly or indirectly, a consumer debt resulting from a private education credit obligation. The term includes a debt buyer, as defined in section 5-16-103 (8.5).
(2) (a) "Cosigner" means any individual who is liable for the obligation of another without compensation, regardless of how the individual is designated in the contract or instrument with respect to that obligation, including an obligation under a private education credit obligation extended to consolidate a borrower's preexisting student loans. The term includes any individual whose signature is requested as a condition to grant credit or to forbear on collection.
(b) "Cosigner" does not include a spouse of an individual described in subsection (2)(a) of this section if the spouse's signature is needed solely to perfect the security interest in a loan.
(3) Repealed.
(4) "Postsecondary educational institution" means an institution that provides postsecondary instruction, as defined in section 23-60-103 (3), including an employer that provides education and training to a worker where the expense of the education and training is recoverable pursuant to section 8-2-113 (3)(a).
(5) "Postsecondary education expense" means any expense associated with a student's enrollment in, or attendance at, a postsecondary educational institution, including an employer's recoverable expense of educating and training a worker pursuant to section 8-2-113 (3)(a).
(6) Repealed.
(7) (a) "Private education credit obligation" means a student education credit obligation that, unless otherwise exempt:
(I) Is not made, insured, or guaranteed under Title IV of the federal "Higher Education Act of 1965", 20 U.S.C. sec. 1070 et seq., as amended; and
(II) Is extended to a consumer expressly, in whole or in part, for postsecondary educational expenses, regardless of whether the credit obligation is provided by the postsecondary educational institution that the student attends, including a payment plan or financing.
(b) "Private education credit obligation" does not include:
(I) A loan that is secured by real property, regardless of the purpose of the loan; or
(II) An extension of credit in which the covered postsecondary educational institution is the creditor if:
(A) The term of the extension of credit is ninety days or less; or
(B) An interest rate is not applied to the credit balance and the term of the extension of credit is one year or less, even if the credit is payable in more than four installments.
(7.5) (a) "Private education creditor" or "creditor" means:
(I) Any person engaged in the business of making or extending private education credit obligation;
(II) A holder of a private education credit obligation; or
(III) A seller, lessor, lender, or person that makes or arranges a private education credit obligation and to whom the private education credit obligation is initially payable or the assignee of a creditor's right to payment.
ditor" means:
(I) Any person engaged in the business of making or extending private education credit obligation;
(II) A holder of a private education credit obligation; or
(III) A seller, lessor, lender, or person that makes or arranges a private education credit obligation and to whom the private education credit obligation is initially payable or the assignee of a creditor's right to payment.
(b) "Private education creditor" or "creditor" does not include:
(I) A bank, as defined in 12 U.S.C. sec. 1841 (c);
(II) A credit union;
(III) An industrial bank organized under Title 7, Chapter 8, "Financial Institutions Act", Utah Code Annotated, as amended; or
(IV) A collection agency, as defined in section 5-16-103 (3).
(8) "Private education credit borrower" means any resident of Colorado, including a student loan borrower, who has received or agreed to pay a private education credit obligation for the resident's own postsecondary education expenses or any resident of Colorado who cosigns for a private education credit obligation.
(8.5) "Refinanced" means an existing private education credit obligation is satisfied and replaced by a new private education credit obligation undertaken by the same consumer.
(9) (a) "Total and permanent disability" means, except as otherwise provided in subsection (9)(b) of this section, the condition of an individual who:
(I) Has been determined by the United States secretary of veterans affairs to be unemployable due to a service-connected disability; or
(II) Is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than twelve months, or can be expected to last for a continuous period of not less than twelve months.
(b) "Total and permanent disability" does not include a condition that has not progressed or been exacerbated, or that the individual did not acquire, until after the closing of the loan agreement.
C.R.S. § 5-20-203 Registration of private education creditors - penalties - rules
5-20-203. Registration of private education creditors - penalties - rules. (1) On or after September 1, 2021, a person shall not offer or make a private education loan to a resident of Colorado without first registering with the administrator as provided in this section.
(2) A private education creditor shall:
(a) Register with the administrator pursuant to any registration procedures set forth by the administrator and pay the fee set by the administrator by rule; and
(b) Provide the administrator, at the time of registration and not less than once per year thereafter, as established by the administrator by rule, and at other times upon the administrator's request, with the following documents and information:
(I) A list of all schools at which the private education creditor has provided a private education credit obligation to a private education credit borrower; except that this requirement does not apply to a private education credit obligation that is refinanced;
(II) The volume of private education loans made annually to private education loan borrowers;
(III) The volume of private education credit obligations made annually at each school identified under subsection (2)(b)(I) of this section; except that this requirement does not apply to a private education credit obligation that is refinanced;
(IV) The default rate for private education credit borrowers obtaining private education credit obligations from the private education creditor, including the default rate for private education credit obligations made to private education credit borrowers at each school listed pursuant to subsection (2)(b)(I) of this section; except that this requirement does not apply to a private education credit obligation that is refinanced;
(V) A copy of each model promissory note, agreement, contract, or other instrument used by the private education lender during the previous year to substantiate that a private education loan has been extended to a private education loan borrower or that a private education loan borrower owes a debt to the lender; and
(VI) The name and address of the private education lender and any officer, director, partner, or owner of a controlling interest of the lender.
(3) The administrator shall create a publicly accessible website that includes the following information about private education lenders registered in Colorado:
(a) The name, address, telephone number, and website for all registered private education lenders;
(b) A summary of the information required under subsections (2)(b)(I) to (2)(b)(VI) of this section; and
(c) Copies of all model promissory notes, agreements, contracts, and other instruments provided to the administrator under subsection (2)(b)(V) of this section.
(4) The administrator may impose civil penalties on private education lenders and collection agencies in the same amounts, in substantially the same manner, and on substantially the same grounds as provided in sections 5-20-114 to 5-20-117 for the imposition of civil penalties on student loan servicers.
(5) The administrator may order that any person who has been found to have violated any provision of this part 2, or of the rules issued pursuant to this part 2, and has thereby caused financial harm to a consumer be barred for a term not exceeding ten years from acting as a private education lender or a stockholder, officer, director, partner or other owner, or employee of a private education lender.
(6) The administrator may prescribe an alternative registration process and fee structure for public and private nonprofit postsecondary educational institutions.
(7) An entity that is required to file a notification with the administrator pursuant to section 5-6-202 or required to hold a license pursuant to section 5-2-301, 5-16-118, or 5-20-106 is exempt from registration under this section but is subject to all other requirements of this part 2.
(8) The administrator may waive registration fees for:
ate nonprofit postsecondary educational institutions.
(7) An entity that is required to file a notification with the administrator pursuant to section 5-6-202 or required to hold a license pursuant to section 5-2-301, 5-16-118, or 5-20-106 is exempt from registration under this section but is subject to all other requirements of this part 2.
(8) The administrator may waive registration fees for:
(a) Private education creditors that make, extend, or hold fewer than five private education credit obligations in the year starting September 1 preceding the registration; and
(b) State or local governmental entities.
C.R.S. § 5-20-204 Cosigner disclosures
5-20-204. Cosigner disclosures. (1) Before extending a private education credit obligation that requires a cosigner, a private education creditor shall disclose to the cosigner:
(a) How the private education credit obligation will appear on the cosigner's credit;
(b) How the cosigner will be notified if the private education credit obligation becomes delinquent, including how the cosigner can cure the delinquency in order to avoid negative credit furnishing and loss of cosigner release eligibility; and
(c) Eligibility for release of the cosigner's obligation on the private education credit obligation, including the number of on-time payments and any other criteria required to approve the release of the cosigner from the credit obligation.
(2) For any private education credit obligation that obligates a cosigner, a creditor shall provide the private education credit borrower and the cosigner an annual written notice containing information about cosigner release, including the administrative, objective criteria the creditor requires to approve the release of the cosigner from the credit obligation and the process for applying for cosigner release. If the private education credit borrower has met the applicable payment requirement to be eligible for cosigner release, the creditor shall send the private education credit borrower and the cosigner a written notification by mail, and by electronic mail if a private education credit borrower or cosigner has elected to receive electronic communications from the creditor, informing the private education credit borrower and cosigner that the payments requirement to be eligible for cosigner release has been met. The notification must also include information about any additional criteria to qualify for cosigner release and the procedure to apply for cosigner release.
(3) A creditor shall provide written notice to a private education credit borrower who applies for cosigner release but whose application is incomplete. The written notice must include a description of the information needed to consider the application complete and the date by which the applicant must furnish the missing information in order to complete the application.
(4) Within thirty days after a private education credit borrower submits a completed application for cosigner release, the creditor shall send the private education credit borrower and cosigner a written notice that informs the private education credit borrower and cosigner whether the creditor has approved or denied the cosigner release application. If the creditor denies a request for cosigner release, the private education credit borrower may request copies of any documents or information used in the determination, including the credit score threshold used by the creditor, the private education credit borrower's consumer report, the private education credit borrower's credit score, and any other documents or information specific to the private education credit borrower. The creditor shall also provide any adverse action notices required under applicable federal law if the denial is based in whole or in part on any information contained in a consumer report.
(5) In response to a written or oral request by the private education credit borrower for cosigner release, a creditor shall provide to the private education credit borrower the information described in subsection (2) of this section.
C.R.S. § 5-20-205 Cosigner release - definition
5-20-205. Cosigner release - definition. (1) A creditor shall not impose any restriction that permanently bars a private education credit borrower from qualifying for cosigner release, including restricting the number of times a private education credit borrower may apply for cosigner release.
(2) A creditor shall not impose any negative consequences on a private education credit borrower or cosigner during the sixty days following the issuance of the notice required pursuant to section 5-20-204 (3) or until the creditor makes a final determination about a private education credit borrower's cosigner release application, whichever occurs later. As used in this subsection (2), "negative consequences" includes the imposition of additional eligibility criteria, negative credit reporting, lost eligibility for cosigner release, late fees, interest capitalization, or other financial injury.
(3) For any private education credit obligation issued on or after June 29, 2021, a creditor shall not require proof of more than twelve consecutive, on-time payments as part of the criteria for cosigner release. A private education credit borrower who has paid the equivalent of twelve months of principal and interest payments within any twelve-month period is deemed to have satisfied the consecutive, on-time payment requirement even if the private education credit borrower has not made payments monthly during the twelve-month period. If a private education credit borrower or cosigner requests a change in terms that restarts the count of consecutive, on-time payments required for cosigner release, the creditor shall notify the private education credit borrower and cosigner in writing of the impact of the change and provide the private education credit borrower or cosigner the right to withdraw or reverse the request to avoid that impact.
(4) A private education credit borrower may request an appeal of a creditor's determination to deny a request for cosigner release, and the creditor shall permit the private education credit borrower to submit additional documentation evidencing the private education credit borrower's ability, willingness, and stability to meet the payment obligations. The private education credit borrower may request that another employee of the creditor review the cosigner release determination.
(5) A creditor shall establish and maintain a comprehensive record management system reasonably designed to ensure the accuracy, integrity, and completeness of information about cosigner release applications and to ensure compliance with applicable state and federal laws, including the federal "Equal Credit Opportunity Act", 15 U.S.C. sec. 1691 et seq., as amended, and the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681 et seq., as amended. This system must include the number of cosigner release applications received, the approval and denial rate, and the primary reasons for any denial.
C.R.S. § 5-20-206 Cosigner rights
5-20-206. Cosigner rights. (1) A creditor shall provide a cosigner with access to all documents or records related to the cosigned private education credit obligation that are available to the private education credit borrower.
(2) (a) If a creditor provides electronic access to documents and records for a private education credit borrower, the creditor shall provide equivalent electronic access to the cosigner.
(b) Upon the private education credit borrower's request, the creditor shall redact the private education credit borrower's contact information from documents and records provided to a cosigner.
(3) A creditor shall not include in a private education credit obligation executed after June 29, 2021, a provision that permits the creditor to accelerate payments, in whole or in part, except upon a payment default. A creditor shall not place any credit obligation or account into default or accelerate a credit obligation for any reason other than payment default.
(4) A private education credit obligation executed before June 29, 2021, may permit the creditor to accelerate payments only if the promissory note or credit obligation agreement explicitly authorizes an acceleration and only for the reasons stated in the note or agreement.
C.R.S. § 5-20-207 Bankruptcy or death of cosigner
5-20-207. Bankruptcy or death of cosigner. (1) If a cosigner dies, the creditor shall not attempt to collect against the cosigner's estate other than for payment default.
(2) With regard to the death or bankruptcy of a cosigner, if a private education creditor is not more than sixty days delinquent at the time the creditor is notified of the cosigner's death or bankruptcy, the creditor shall not change any terms or benefits under the promissory note, repayment schedule, repayment terms, or monthly payment amount or any other provision associated with the credit obligation.
C.R.S. § 5-20-208 Total and permanent disability of the private education credit borrower or cosigner
5-20-208. Total and permanent disability of the private education credit borrower or cosigner. (1) For any private education credit obligation issued on or after June 29, 2021, a private education creditor, when notified of the total and permanent disability of a private education credit borrower or cosigner, shall release any cosigner from the obligations of the cosigner under a private education credit obligation. The creditor shall not attempt to collect a payment from a cosigner following a notification of total and permanent disability of the private education credit borrower or cosigner.
(2) A creditor shall, when notified of the total and permanent disability of a private education credit borrower, discharge the liability of the private education credit borrower and cosigner on the credit obligation.
(3) After receiving a notification described in subsection (2) of this section, the creditor shall not:
(a) Attempt to collect on the outstanding liability of the private education credit borrower or cosigner; or
(b) Monitor the disability status of the private education credit borrower at any point after the date of discharge.
(4) A creditor shall, within thirty days after the release of either a cosigner or private education credit borrower from the obligations of a private education credit obligation pursuant to subsection (1) or (2) of this section, notify both the private education credit borrower and cosigner of the release.
(5) A creditor shall, within thirty days after receiving notice of the total and permanent disability of a private education credit borrower pursuant to subsection (1) of this section, provide the private education credit borrower an option to designate an individual to have the legal authority to act on behalf of the private education credit borrower.
(6) If a cosigner is released from the obligations of a private education credit obligation pursuant to subsection (1) of this section, the creditor shall not require the private education credit borrower to obtain another cosigner on the credit obligation.
(7) A creditor shall not declare a default or accelerate the debt against the private education credit borrower on the sole basis of the release of the cosigner from the credit obligation due to total and permanent disability pursuant to subsection (1) of this section.
C.R.S. § 5-20-209 Refinancing - additional disclosures - limitations on default pending approval
5-20-209. Refinancing - additional disclosures - limitations on default pending approval. (1) Before offering a person a private education credit obligation that is being used to refinance an existing education credit obligation, a private education creditor shall provide the person a disclosure explaining that benefits and protections applicable to the existing credit obligation may be lost due to the refinancing. The disclosure must be provided on a one-page information sheet in at least twelve-point type and must be written in simple, clear, understandable, and easily readable language.
(2) If a private education creditor offers any private education credit borrower modified or flexible repayment options in connection with a private education credit obligation, the creditor shall offer those modified or flexible repayment options to all of the creditor's private education credit borrowers. In addition, the creditor shall:
(a) Provide on its website a description of any modified or flexible repayment options offered by the creditor for private education credit obligations;
(b) Establish policies and procedures and implement modified or flexible repayment options consistently in order to facilitate the evaluation of private education credit obligation modified or flexible repayment option requests, including providing accurate information regarding any such options that may be available to the private education credit borrower through the promissory note or that may have been marketed to the private education credit borrower through marketing materials; and
(c) Consistently present and offer private education credit obligation modified or flexible repayment options to private education credit borrowers with similar financial circumstances, if the creditor offers such repayment options.
(3) A private education creditor shall not place a credit obligation or account into default or accelerate a credit obligation while a private education credit borrower is seeking a credit obligation modification or enrollment in a modified or flexible repayment plan; except that a creditor may place a credit obligation or account into default or accelerate a credit obligation for payment default ninety days after the private education credit borrower's default.
C.R.S. § 5-20-210 Prohibited conduct
5-20-210. Prohibited conduct. (1) A private education creditor shall not:
(a) Offer any private education credit obligation that does not comply with this part 2 or with rules or orders of the administrator that are issued under this part 2 or that violates any other state or federal law;
(b) Engage in any unfair, deceptive, or abusive act or practice;
(c) (I) Take an assignment of earnings of the private education credit borrower or cosigner for payment or as a security for payment of a debt arising out of a private education credit obligation. An assignment of earnings in violation of this section is unenforceable by the assignee of the earnings and revocable by the borrower or cosigner.
(II) A sale of unpaid earnings made in consideration of the payment of money to or for the account of the seller of the earnings is deemed to be a credit obligation to the seller, secured by an assignment of earnings.
(d) Make, advertise, print, display, publish, distribute, electronically transmit, telecast, or broadcast, in any manner, any statement or representation that is false, misleading, or deceptive.
C.R.S. § 5-20-211 Record retention - confidentiality
5-20-211. Record retention - confidentiality. (1) A private education creditor shall establish and maintain records and permit the administrator to access and copy any records or records systems required to be maintained pursuant to this part 2 or rules of the administrator adopted to implement this part 2. The creditor shall retain loan files, including any records specified for retention under rules of the administrator, for not less than six years after the termination of the credit obligation account.
(2) The administrator shall not make public the name or identity of a person whose acts or conduct the administrator investigates or examines pursuant to this part 2 or the facts disclosed in the investigation or examination.
(3) The administrator may disclose registration application and renewal records provided to the administrator and other contents of registration records maintained pursuant to this part 2, but the administrator shall not make public the confidential information contained in the records.
(4) The restrictions on the disclosure of information in subsections (2) and (3) of this section do not apply to disclosures made by the administrator in furtherance of actions or administrative enforcement proceedings pursuant to this part 2.
C.R.S. § 5-20-212 Collection on debt - prerequisites - documentation
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;
st 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.
irty 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.
C.R.S. § 5-20-213 Actions - counterclaims
5-20-213. Actions - counterclaims. (1) (a) For litigation proceedings commenced on or after June 29, 2021, a court shall not enter a judgment on a private education credit obligation if the collection agency does not comply with the requirements of section 5-20-212.
(b) For litigation proceedings commenced before June 29, 2021, the court shall not enter a judgment until the collection agency is provided an opportunity to submit proof of compliance with section 5-20-212.
(2) If a creditor or collection agency fails to comply with the requirements of this part 2, a private education credit borrower may bring an action, including a counterclaim, against the creditor or collection agency to recover or obtain:
(a) An order setting aside or vacating any default judgment entered against the private education credit borrower;
(b) A judgment in favor of the private education credit borrower;
(c) Actual damages or five hundred dollars, whichever is greater;
(d) Restitution of all money taken from or paid by the private education credit borrower after a judgment was obtained by a creditor;
(e) Punitive damages;
(f) Injunctive relief;
(g) Correction of the private education credit borrower's credit report;
(h) Attorney fees and court costs; and
(i) Any other relief that the court deems proper.
C.R.S. § 5-20-214 Remedies - civil actions - limitations - deceptive trade practice
5-20-214. Remedies - civil actions - limitations - deceptive trade practice. (1) In addition to any other remedies provided by this part 2 or otherwise provided by law, whenever it is proven by a preponderance of the evidence that a creditor or collection agency has filed with a court or provided to the private education credit borrower information required under this part 2 that is false, the court shall award to the private education credit borrower the greater of:
(a) Treble damages; or
(b) One thousand five hundred dollars.
(2) A private education credit borrower or cosigner who suffers damage as a result of a violation of this part 2 may bring an action in a court of competent jurisdiction to recover:
(a) The greater of actual damages or five hundred dollars;
(b) An order requiring the creditor or collection agency to take all actions necessary to correct the private education loan borrower's credit report;
(c) Punitive damages;
(d) Attorney fees and court costs; and
(e) Any other relief that the court deems proper.
(2.5) A court shall not award monetary damages under both this part 2 and article 16 of this title 5 or 15 U.S.C. sec. 1692k for violations of law arising from specific instances of the same conduct.
(3) Notwithstanding article 80 of title 13, all actions brought under this part 2 must be commenced within six years after the date on which any violation of this part 2 occurred, within six years after the date on which the last in a series of such acts or practices occurred, or within six years after the plaintiff discovered, or in the exercise of reasonable diligence should have discovered, the occurrence of a violation of this part 2; except that the period of limitation provided in this subsection (3) may be extended for a period of one year if the plaintiff proves that failure to timely commence the action was caused by the defendant engaging in conduct calculated to induce the plaintiff to refrain from or postpone the commencement of the action.
(4) A violation of this part 2 is a deceptive trade practice as specified in section 6-1-105. A private education creditor or collection agency that fails to comply with any requirement imposed under this part 2 with respect to a private education credit borrower or cosigner is liable in an amount equal to the sum of:
(a) Any actual damages sustained by the private education credit borrower or cosigner as a result of the failure;
(b) A monetary award equal to three times the total amount the private education creditor or collection agency collected from the private education credit borrower or cosigner in violation of this part 2;
(c) Punitive damages as the court may allow; and
(d) In the case of any successful action by a private education credit borrower to enforce the liability set out in this section, the costs of the action, together with reasonable attorney fees as determined by the court.
(5) The remedies provided in this section are not the exclusive remedies available to a private education credit borrower or cosigner.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-05.docxFetched: 10/6/2026