Legal Question in Credit and Debt Law in Colorado
Collection Agency reporting law in CO
My husband a year ago went out and purchased a car...put down $1000 and had an issue with it, so he placed a stop pymt on the check to try to resolve the issue...in the meantime they sent him to a collection agency. I just did a credit check on my credit & noticed this collection agency was on my credit. I called them to tell them that I was not on this loan and that I should not have a negative mark against my credit. They told me since my name was on the check that was wrote, I was also responsible even though I was NOT on the loan. They said it was the law in Colorado. My question is, what they told me, is that correct?
1 Answer from Attorneys
Re: Collection Agency reporting law in CO
In my opinion, absolutely not.
Collection agencies which operate in Colorado are required to be licensed by an agency of the State. You should check to see if this one has been licensed.
The statement constitutes a fraudulaent misrepresentation, and as such, is a violation of the Fair Debt Collection Practices laws - both federal and Colorado. Unless the agency gave you a "Miranda warning" during the course of your telephone conversation, such failure constitutes a separate violation. The act of reporting a delinquency in your file, based on the premise they gave you, likely constitutes a separate violation of both federal and Colorado law.
You may be able to get the agency to correct your credit report, based on this opinion. You could likely collect, at a minimum, statutory damages and attorney fees if you decide to engage an attorney to represent you.
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