Signed by Governor Jared Polis

Vote Smart's Synopsis:

A vote to concur with senate amendments and pass a bill that restructures regulations of guaranteed asset protection agreements.

Highlights:

• Specifies that a creditor may charge for debt cancellation contracts and guaranteed asset protection agreements (Sec. 1). 

• Defines several financial agreement terms related to guaranteed asset protection agreements (Sec. 3). 

• Specifies that this act applies to every creditor in the state of Colorado (Sec. 3).

• Authorizes a creditor to sell, offer, provide, and administer a Guaranteed Asset Protection agreement if they meet certain requirements  (Sec. 3). 

• Specifies that a Guaranteed asset protection agreement may be allowed if they agree to the conditions (Sec. 3): 

• A written notice must be delivered  on how the consumer is not required to purchase a GAP agreement and other details; 

• The consumer is provided is provided with a means to cancel the agreements; 

• Provision of a written agreement for the purchase of GAP agreement if one is purchased;

• Details of the GAP agreement if purchased 

• Specifies that the fee for a GAP agreement may not exceed $600 (Sec. 3). 

• Requires a statement to be given along with a GAP agreement regarding consumer claims against creditors (Sec. 3). 

• Specifies that the creditor must provide a refund if the agreement has been resigned to someone who is not the original creditor and other reasons (Sec. 3). 

• Specifies that an insured customer has 90 days to file a loss settlement from property damage insurance till they can file a claim under the GAP agreement to seek debt cancellation from the creditor (Sec. 3). 

• Specifies that this act goes into effect  January 1st 2024 (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that restructures regulations of guaranteed asset protection agreements.

Highlights:

• Specifies that a creditor may charge for debt cancellation contracts and guaranteed asset protection agreements (Sec. 1). 

• Defines several financial agreement terms related to guaranteed asset protection agreements (Sec. 3). 

• Specifies that this act applies to every creditor in the state of Colorado (Sec. 3).

• Authorizes a creditor to sell, offer, provide, and administer a Guaranteed Asset Protection agreement if they meet certain requirements  (Sec. 3). 

• Specifies that a Guaranteed asset protection agreement may be allowed if they agree to the conditions (Sec. 3): 

• A written notice must be delivered  on how the consumer is not required to purchase a GAP agreement and other details; 

• The consumer is provided is provided with a means to cancel the agreements; 

• Provision of a written agreement for the purchase of GAP agreement if one is purchased;

• Details of the GAP agreement if purchased 

• Specifies that the fee for a GAP agreement may not exceed $600 (Sec. 3). 

• Requires a statement to be given along with a GAP agreement regarding consumer claims against creditors (Sec. 3). 

• Specifies that the creditor must provide a refund if the agreement has been resigned to someone who is not the original creditor and other reasons (Sec. 3). 

• Specifies that an insured customer has 90 days to file a loss settlement from property damage insurance till they can file a claim under the GAP agreement to seek debt cancellation from the creditor (Sec. 3). 

• Specifies that this act goes into effect  January 1st 2024 (Sec. 4).

Full Bill Text