S.B. 10-155 Gift cards - limitations on issuance. An issuer of a gift card is required to redeem the gift card for cash if the amount remaining is less than $5 on request of the holder. The act prohibits an issuer of a gift card from charging any fees in connection with the issuance of the card.
The act excludes from the definition of "gift card" a prefunded tangible or electronic record issued by, or on behalf of, any government agency; a gift certificate that is issued only on paper; a prepaid telecommunications or technology card; a card or certificate issued to a consumer pursuant to an awards, loyalty, or promotional program for which no money or other item of monetary value was exchanged; and a card that is donated or sold below face value at a volume discount to an employer or charitable organization for fundraising purposes.
The act also makes violation of the limitations regarding gift cards a deceptive trade practice.
APPROVED by Governor April 29, 2010
EFFECTIVE August 11, 2010
NOTE: This act was passed without a safety clause. For further explanation concerning
the effective date, see
page vi of this digest.
H.B. 10-1133 Consumer protection - Foreclosure Protection Act - equity purchasers - short sales - definitions - disclosures. The act amends key provisions of the "Colorado Foreclosure Protection Act", enacted in 2006, including the definition of an "equity purchaser", and imposes additional duties on equity purchasers.
A person who acquires title to a residence in foreclosure as a result of a short sale in which an appropriate addendum to the contract is included and all statutorily required disclosures are made is exempted from the definition of an "equity purchaser". "Home owner" is redefined to mean the owner of a dwelling who occupies it as a principal place of residence, rather than the owner of a residence in foreclosure.
For purposes of the equity purchaser provisions, "residence in foreclosure" is defined as a residence that is occupied as the home owner's principal residence, is encumbered by a residential mortgage loan, and as to which an equity purchaser knows or should know that the loan is at least 30 days in default. A "short sale" is defined as a transaction in which a residence in foreclosure is sold for less than the amount due under a recorded lien, and the lien is released.
The requirement that a sales contract be in "bold-faced" type is eliminated and, instead, contracts must be "legible". A uniform 9-point type size is adopted for certain documents. If the equity purchaser knows or should know that the home owner's principal language is other than English, a separate disclosure form in the home owner's principal language must be provided along with the contract.
In a short sale transaction in which the equity purchaser intends to sell the property to another purchaser within 14 days, the equity purchaser must disclose to the seller and the seller's lender, as well as to any subsequent purchasers and their lenders, the terms of the intended resale including the amount to be paid.
APPROVED by Governor June 7, 2010
EFFECTIVE January 1, 2011
NOTE: This act was passed without a safety clause. For further explanation concerning
the effective date, see
page vi of this digest.
H.B. 10-1351 Deferred deposit loans - limitation on lender charges. The act creates a 6-month minimum loan term and no maximum loan term for each deferred deposit loan. Lenders must accept prepayment from a consumer with no penalty for the early payment. In addition to the finance charge currently allowed for each loan, lenders may charge an interest rate of 45% and must pay a prorated refund of the interest rate back to the consumer if the loan is prepaid. A lender may charge a monthly maintenance fee for each outstanding deferred deposit loan and charge an interest rate of 45% upon renewal of a deferred deposit loan. A lender is no longer required to offer a consumer a payment plan after a 4th consecutive loan. The act creates an unfair or deceptive trade practice for specific violations of the "Deferred Deposit Loan Act".
APPROVED by Governor May 25, 2010
EFFECTIVE August 11, 2010
NOTE: This act was passed without a safety clause. For further explanation concerning
the effective date, see
page vi of this digest.
H.B. 10-1400 Refund anticipation loans - facilitators - electronic return originator registration - mandatory disclosures to consumers - investigation and enforcement - penalties - repeal. A "refund anticipation loan" is a loan that is made to a Colorado consumer based on the consumer's anticipated income tax refund. Currently, Colorado does not regulate issuers of refund anticipation loans, commonly known as "refund anticipation loan facilitators". In order to implement the recommendations of the "2010 Sunrise Review: Refund Anticipation Loan Facilitators" conducted by the department of regulatory agencies, the act creates the "Refund Anticipation Loans Act", which:
• Requires a refund anticipation loan facilitator to be registered with the federal internal revenue service as an electronic return originator or directly employed by a person so registered;
• Specifies information that a refund anticipation loan facilitator is required to disclose to a consumer;
• Makes a willful violation of the "Refund Anticipation Loans Act" a misdemeanor that is punishable by a fine of up to $500, imprisonment in county jail for up to one year, or by both such fine and imprisonment; and
• Requires the administrator of the "Uniform Consumer Credit Code" (code) to enforce the act and applies to the act the same civil actions available to the administrator under the code.
The act takes effect on November 1, 2010, and, unless extended by bill, is repealed on September 1, 2019.
APPROVED by Governor May 19, 2010
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The information on this page is presented as an informational service only and should not be relied upon as an official record of action or legal position of the State of Colorado, the Colorado General Assembly, or the Office of Legislative Legal Services.