Colorado debt: the Attorney General polices collectors, and pay is protected more than federal law requires
In Colorado, debt collection is policed by the Attorney General's office, which licenses agencies, requires them to post a bond and takes action against those that break the rules. Lawsuits must usually come within six years, and since 2019 a judgment can take no more than a fifth of each paycheck.
Free check first. If a dispute letter makes sense, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Colorado at a glance
- Debts for a set sum
- 6 years (13-80-103.5)
- Some unliquidated claims
- 3 years (13-80-101)
- After the limit
- Debt still exists; no lawsuit
- Wage garnishment
- At most 20% (since 2019)
- Agency license and bond
- Required (CFDCPA)
- Enforcer
- Attorney General's office
General information about Colorado law, with sources below. Not legal advice.
Six years for most debts in Colorado
Six years for actions to recover a liquidated debt, meaning a set sum, which covers most consumer debts including open accounts, written contracts and medical debt (C.R.S. 13-80-103.5). Some claims where the amount is not a set sum fall under a three-year period instead (C.R.S. 13-80-101).
Colorado courts have said the time limit takes away the remedy but does not extinguish the debt itself. So a collector can still ask, but not sue, once the time has run.
Wage garnishment in Colorado
Since a 2019 law (HB 19-1189), a garnishment can take no more than the lesser of 20% of weekly disposable earnings or the amount above 40 times the federal or state minimum wage, whichever minimum is higher (C.R.S. 13-54-104). A continuing garnishment lasts six months unless the debt is paid off sooner, and your employer cannot fire you because your earnings are garnished. Income such as Social Security, unemployment, workers' compensation and many pensions is exempt.
For the federal floor beneath Colorado's rule, and what to do if your pay is already being garnished, see how much of your wages can be garnished.
After the 6-year limit runs out, a collector must not sue or threaten to; read what to do about an old debt before paying anything.
Limits vary a lot between states: by comparison, Idaho sets 4 years and Mississippi sets 3 years for similar debts.
Not sure a Colorado collector is genuine? Check our guide to fake debt collectors, then ask for validation in writing.
Most debt lawsuits end in default because people do not respond; our page on what to do if a debt collector sues you explains how to avoid that in Colorado.
Licensing and the Attorney General
The Colorado Fair Debt Collection Practices Act requires collection agencies to be licensed and bonded, and is enforced by an administrator in the Attorney General's office. The Attorney General enforces these rules: in 2024 it settled with collector TrueAccord over collecting high-interest loans whose rates broke Colorado law, barring it from collecting any debt where the original APR exceeded state limits. See our TrueAccord page for details.
The federal dispute right applies on top: a written dispute inside the validation period makes the collector stop until it mails verification.
If your letter comes from a national company such as Enterprise Recovery Systems or Harris & Harris, our collector guides explain who they are and how to dispute.
Questions people ask about debt in Colorado
What is the statute of limitations on credit card debt in Colorado?
Generally six years under C.R.S. 13-80-103.5, which covers debts for a set sum.
Is it ever three years in Colorado?
Some claims where the amount is not a set sum fall under the three-year rule in C.R.S. 13-80-101.
How much of my paycheck can be garnished in Colorado?
No more than the lesser of 20% of weekly disposable earnings or the amount above 40 times the higher of the federal or state minimum wage, a rule in place since 2019.
Do collection agencies need a license in Colorado?
Yes. The Colorado Fair Debt Collection Practices Act requires agencies to be licensed and bonded.
Who enforces Colorado's collection law?
An administrator in the Attorney General's office, which also brings enforcement actions such as its 2024 settlement with TrueAccord.