Do third-party debt collectors need a license in Colorado?

Yes. Colorado requires third-party debt collection agencies to hold a Colorado Collection Agency License. This is administered by the Colorado Attorney General's office. Original creditors collecting their own debts do not need this license.

Does the Colorado Fair Debt Collection Practices Act apply to B2B debt collection?

The Colorado Fair Debt Collection Practices Act (CFDCPA) primarily mirrors the federal FDCPA for consumer debts. However, the CFDCPA has broader language that courts have applied to some B2B collection situations, particularly involving smaller businesses or sole proprietorships. Collectors should follow CFDCPA standards as a best practice for all Colorado collections.

B2B Debt Collection Laws in Colorado

Q: What is the statute of limitations for B2B debt collection in Colorado?

In Colorado, the statute of limitations for written commercial contracts is 6 years (CRS §13-80-103.5). The same 6-year period applies to oral contracts and open account debts in Colorado, making it one of the more creditor-friendly SOL regimes.

Overview

Colorado B2B Debt Collection Rules

Colorado is a rapidly growing commercial state anchored by technology, aerospace, energy, and professional services. Colorado has a 6-year statute of limitations that applies uniformly to written contracts, oral contracts, and open accounts — giving creditors a reasonable window to pursue overdue commercial debts.

Key distinction: Colorado has its own Fair Debt Collection Practices Act (CFDCPA) that goes beyond the federal FDCPA. While primarily consumer-focused, Colorado courts have applied the CFDCPA to some commercial collection scenarios involving smaller businesses. Third-party collectors must hold a Colorado Collection Agency License.

Statute of Limitations

How Long You Have to Collect

Colorado Revised Statutes §13-80-103.5

Colorado applies a uniform 6-year statute of limitations to most commercial debt claims — written contracts, oral contracts, and open accounts all receive the same 6-year window.

Contract Type	Time Limit	Code Section
Written contract	6 years	CRS §13-80-103.5
Oral contract	6 years	CRS §13-80-103.5
Open account (invoices)	6 years	CRS §13-80-103.5
Promissory note	6 years	CRS §13-80-103.5

Important: The clock starts from the date the debt became due. Colorado's uniform 6-year SOL across contract types simplifies tracking. A partial payment or written acknowledgment may restart the period.

Licensing

Who Needs a License

Colorado Collection Agency License

Colorado requires third-party debt collection agencies to hold a Collection Agency License administered by the Colorado Attorney General's office. This covers both consumer and commercial collection activity.

Third-party collectors must hold a Colorado Collection Agency License
Original creditors collecting their own debts do not need a license
Out-of-state agencies must register before collecting Colorado debts
Bond requirement and annual renewal apply
Violations can result in license revocation and civil penalties

How AgentCollect Handles This

AgentCollect holds its own Colorado Collection Agency License
Clients do not need to obtain a separate license
All CFDCPA-required disclosures are automatically included in every campaign

Key Regulations

Laws That Apply to B2B Collections

Colorado Fair Debt Collection Practices Act (CFDCPA)

Colorado's CFDCPA (CRS §12-14-101 et seq.) is broader than the federal FDCPA. It has been applied by Colorado courts to certain commercial collection scenarios, particularly involving small businesses and sole proprietors.

Mirrors federal FDCPA prohibitions: no harassment, threats, or deceptive practices
Broader scope — courts have extended it to some B2B collections
Requires written validation notice within 5 days of initial communication
Violations can result in actual damages, statutory penalties, and attorney fees

UCC Article 2 — Commercial Transactions

Colorado has adopted the Uniform Commercial Code, which governs commercial sales transactions and provides the framework for B2B payment disputes.

Governs sale of goods between businesses
Allows contractual modification of remedies and payment terms
Commercial reasonableness standard applies to all collection activity

Interest on Commercial Debts

Colorado allows parties to contract for any interest rate on commercial debts. In the absence of a written agreement, Colorado's statutory rate applies.

Contractual rate: parties may agree to any rate in B2B contracts
Colorado statutory rate: 8% per year if no rate is specified (CRS §5-12-101)
Include explicit interest terms in all commercial agreements

AgentCollect Compliance

Automatic Colorado Compliance

Every AgentCollect account is pre-configured for Colorado's specific requirements. No manual setup needed.

Requirement	How AgentCollect Handles It
Contact hours (8am–9pm MT)	AI agents auto-detect Mountain timezone from area code. Never calls outside permitted hours.
Collection Agency License	AgentCollect holds its own Colorado license. No client action needed.
SOL monitoring (6 years)	Accounts approaching the 6-year SOL are flagged automatically for prioritization.
CFDCPA validation notice	Sent within 5 days of initial contact with all required CFDCPA disclosures.
Cease-and-desist	Immediately stops all contact. Account moved to legal review queue.

FAQ

Colorado B2B Debt Collection FAQ

What is the statute of limitations for B2B debt collection in Colorado?

Colorado applies a uniform 6-year statute of limitations to written contracts, oral contracts, and open account debts including unpaid invoices (CRS §13-80-103.5). The clock starts from the date the debt became due or the date of last payment.

Do third-party collectors need a license in Colorado?

Yes. Colorado requires a Collection Agency License from the Colorado Attorney General's office for third-party debt collectors. This covers both consumer and commercial collection activity. Original creditors collecting their own debts do not need this license. AgentCollect holds its own license.

Does the Colorado Fair Debt Collection Practices Act (CFDCPA) apply to B2B debt collection?

The CFDCPA is primarily a consumer protection statute, but Colorado courts have applied it to some commercial collection scenarios involving small businesses and sole proprietorships. AgentCollect follows CFDCPA standards for all Colorado collections as a best practice.

What interest rate applies to overdue B2B invoices in Colorado?

Colorado allows any contractual interest rate for commercial debts. If no rate is specified, Colorado's statutory rate of 8% per year applies (CRS §5-12-101). Always include explicit interest terms in your commercial contracts to maximize recovery.

Is Colorado a one-party or two-party consent state for call recording?

Colorado is a one-party consent state for call recording. Only one party to the call needs to consent. AgentCollect provides a disclosure at the start of every call as a best practice regardless.

Commercial Debt Collection in Colorado