SENATE BILL 97014
BY SENATORS Mutzebaugh, Bishop, Blickensderfer, Feeley, Hernandez, Johnson, Linkhart, Matsunaka, Norton, Pascoe, Rupert, Schroeder, and Weddig;
also REPRESENTATIVE Kaufman.
CONCERNING CREDITOR AGREEMENT TO A DEBTOR'S SCHEDULE
OF PAYMENTS.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 1220107,
Colorado Revised Statutes, 1991 Repl. Vol., is amended to read:
1220107. Fee of the licensee. The
fee of the licensee shall be agreed upon in advance and stated
in the contract, and provision for settlement in case of cancellation
or prepayment shall be clearly stated therein. The fee of the
licensee shall not exceed ten percent of the total debts to be
adjusted. The fee of the licensee shall be prorated monthly over
the life of the contract. In addition to the prorated amount,
the licensee shall be allowed to deduct from the first month's
payment a reasonable amount for an application fee, said amount
not to exceed twentyfive dollars. In the event of total
payment of the contract before the term of the contract has expired,
the licensee is entitled to an amount equal to twentyfive
percent of the remaining fee, or any lesser amount as may be agreed
upon. In the event of cancellation of the contract by the debtor,
the licensee is entitled to a cancellation fee not to exceed twentyfive
dollars. The licensee shall not be entitled to any fee under this
article until
UNLESS eighty percent of the creditors as listed in the contract
required by section 1220108 (1) have agreed in
writing to a schedule of payments
as required by section 1220108 (6). FOR THE PURPOSE
OF A LICENSEE'S ENTITLEMENT TO A FEE UNDER THIS SECTION ONLY,
IN ADDITION TO ANY OTHER FORM OF AGREEMENT, A CREDITOR'S ACCEPTANCE
OF A SCHEDULED PAYMENT FROM THE DEBT ADJUSTER AFTER THE CREDITOR
HAS RECEIVED THE PROPOSED SCHEDULE OF PAYMENTS CONSTITUTES SUCH
CREDITOR'S AGREEMENT TO THE SCHEDULE OF PAYMENTS, EXCEPT AS OTHERWISE
PROVIDED BY RULE OF THE BANKING BOARD. A CREDITOR SHALL NOT BE
DEEMED TO HAVE AGREED TO A SCHEDULE OF PAYMENTS OTHER THAN FOR
THE PURPOSE OF ALLOWING A LICENSEE TO COLLECT A FEE, UNLESS SUCH
AGREEMENT BY THE CREDITOR IS IN WRITING.
SECTION 2. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO