If you are considering debt management instead of bankruptcy, you should know that debt management companies in Colorado are regulated by the Uniform Debt Management Services Act.
The Uniform Debt Management Services Act (DMSA) regulates companies that offer and provide debt management services to Colorado residents. It also provides consumer protections.
Under Colorado law, Debt Management Services Providers (Providers) include non-profit and for-profit Credit Counseling and Debt Settlement companies. Providers typically work with unsecured debt such as credit card debt.
The law also applies to law firms and attorneys unless the attorney is licensed to practice law in Colorado and is providing legal services in an attorney-client relationship.
Important Things to Consider:
- You may be able to negotiate a favorable settlement yourself, without paying fees to debt settlement providers, by contacting your creditors directly.
- Creditors are not required to participate in or cooperate with a debt management or settlement plan.
- Plans may negatively affect your credit score and ability to obtain credit.
- Providers cannot stop collection activity, including collection calls, wage garnishment, judgments, and litigation.