{"data":{"id":"us-co/c.r.s.-5-19-228","jurisdiction":"us-co","citation":"C.R.S. § 5-19-228","heading":"Prohibited acts and practices.","body":"(a) A provider may not, directly or indirectly:\n\n(1) Misappropriate or misapply money held in trust;\n\n(2) Settle a debt on behalf of an individual without the individual's agreement to the settlement terms pursuant to a written settlement agreement or other valid written contractual agreement executed by the individual;\n\n(3) Exercise or attempt to exercise a power of attorney after an individual has terminated an agreement;\n\n(4) Initiate a transfer from an individual's account at a bank or with another person unless the transfer is:\n\n(A) A return of money to the individual; or\n\n(B) Before termination of an agreement, properly authorized by the agreement and this part 2, and for:\n\n(i) Payment to one or more creditors pursuant to a plan; or\n\n(ii) Payment of a fee;\n\n(5) Offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement;\n\n(6) Offer, pay, or give a gift or bonus, premium, reward, or other compensation to a person for referring a prospective customer, except for a sales lead, if the person making the referral has a financial interest in the outcome of debt-management services provided to the customer, unless neither the provider nor the person making the referral communicates to the prospective customer the identity of the source of the referral;\n\n(7) Receive a bonus, commission, or other benefit for referring an individual to a person;\n\n(8) Structure a plan in a manner that would result in a negative amortization of any of an individual's debts, unless a creditor that is owed a negatively amortizing debt agrees to refund or waive the finance charge upon payment of the principal amount of the debt;\n\n(9) Compensate its employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements;\n\n(10) Settle a debt or lead an individual to believe that a payment to a creditor is in settlement of a debt to the creditor unless, at the time of settlement, the individual receives a certification by the creditor that the payment is in full settlement of the debt;\n\n(11) Make a representation that:\n\n(A) The provider will furnish money to pay bills or prevent attachments;\n\n(B) Payment of a certain amount will permit satisfaction of a certain amount or range of indebtedness; or\n\n(C) Participation in a plan will or may prevent litigation, collection activity, garnishment, attachment, repossession, foreclosure, eviction, or loss of employment;\n\n(12) Misrepresent that it is authorized or competent to furnish legal advice or perform legal services;\n\n(13) Represent that it is a not-for-profit entity unless it is organized and properly operating as a not-for-profit under the law of the state in which it was formed or that it is a tax-exempt entity unless it has received certification of tax-exempt status from the federal internal revenue service; except that, if the provider represents that it is a not-for-profit entity and the provider does not have tax-exempt status under section 501 (c) (3) of the federal \"Internal Revenue Code of 1986\", as amended, the provider shall state, in a clear and conspicuous manner and in close proximity to the representation: \"We are not an educational, charitable, or religious organization granted tax-exempt status by the Internal Revenue Service.\"\n\n(14) Take a confession of judgment or power of attorney to confess judgment against an individual;\n\n(15) Employ an unfair, unconscionable, or deceptive act or practice, including the knowing omission of any material information; or\n\n(16) Advise, encourage, or suggest to the individual not to make a payment to creditors under the plan.\n\n(b) If a provider furnishes debt-management services to an individual, the provider may not, directly or indirectly:\n\n(1) Purchase a debt or obligation of the individual;\n\n(2) Receive from or on behalf of the individual:\n\n(A) A promissory note or other negotiable instrument other than a check or a demand draft; or\n\n(B) A post-dated check or demand draft;\n\n(3) Lend money or provide credit to the individual, except as a deferral of a settlement fee at no additional expense to the individual;\n\n(4) Obtain a mortgage or other security interest from any person in connection with the services provided to the individual;\n\n(5) Except as permitted by federal law, disclose the identity or identifying information of the individual or the identity of the individual's creditors, except to:\n\n(A) The administrator, upon proper demand;\n\n(B) A creditor of the individual, to the extent necessary to secure the cooperation of the creditor in a plan; or\n\n(C) The extent necessary to administer the plan;\n\n(6) Except as otherwise provided in section 5-19-223 (d)(2), provide the individual less than the full benefit of a compromise of a debt arranged by the provider;\n\n(7) Charge the individual for or provide credit or other insurance, coupons for goods or services, membership in a club, access to computers or the internet, or any other matter not directly related to debt-management services or educational services concerning personal finance; or\n\n(8) Furnish legal advice or perform legal services, unless the person furnishing that advice to or performing those services for the individual is licensed to practice law.\n\n(c) This part 2 does not authorize any person to engage in the practice of law.\n\n(d) A provider may not receive a gift or bonus, premium, reward, or other compensation, directly or indirectly, for advising, arranging, or assisting an individual in connection with obtaining an extension of credit or other service from a lender or service provider, except for educational or counseling services required in connection with a government-sponsored program.\n\n(e) Unless a person supplies goods, services, or facilities generally and supplies them to the provider at a cost no greater than the cost the person generally charges to others, a provider may not purchase goods, services, or facilities from the person if an employee or a person that the provider should reasonably know is an affiliate of the provider:\n\n(1) Owns more than ten percent of the person; or\n\n(2) Is an employee or affiliate of the person.","path":["Title 5 - CONSUMER CREDIT CODE","Article 19 - Debt-management Services","Part 2 - UNIFORM DEBT-MANAGEMENT SERVICES ACT"],"source_url":"https://olls.info/crs/crs2026-title-05.htm","current_through":"Colorado Revised Statutes 2026","vintage":"","retrieved_at":"2026-09-14T18:37:45Z","sha256":"57357c50f27f9029e66618753360aac3f4e5e9eb78bd845a6bcdd2fb2ff9471d","source_id":"us-co","stale":false,"prev":"us-co/c.r.s.-5-19-227","next":"us-co/c.r.s.-5-19-229"},"notice":"GroundRules: Original legal text. Not legal advice."}