Colorado issues remote work guidance to collection agencies

State Issues Colorado State Attorney General Licensing Covid-19

On August 19, the Colorado attorney general published updated guidance on remotely working for employees of entities regulated by the Consumer Credit Unit. Memorandum HB 22-1410, which was signed by the governor on June 7, amended Colorado’s Uniform Consumer Credit Code so that a supervised lender licensee may permit its employees to work from a remote location, so long as the licensee complies with certain requirements. The memorandum also provided that the March 2020 guidance issued by the Consumer Credit Unit Administrator for employees of regulated entities during the COVID-19 pandemic “remains in effect for regulated entities not covered by HB22-1410, including collection agencies, debt management providers, and student loan servicers, and will remain in effect until the last day of the 2023 legislative session of the 74th General Assembly, May 10, 2023.” The memorandum also noted that “due to concerns regarding the COVID-19 outbreak, individuals who work for regulated entities may be required, or wish, to work from home to avoid further spread of the outbreak, even though their homes are not licensed as branches.”

The memorandum also disclosed that the state will not take any administrative, disciplinary, or enforcement actions for individuals working at home in what are technically unlicensed branches as long as certain criteria are met: (i) “The Colorado activity is conducted from the home location of an individual working on behalf of an entity who is licensed, registered, or files notification with the Administrator”; (ii) “The individual is working from home due to a reason connected to the Covid-19 outbreak and has informed the regulated entity in writing”; (iii) “None of the Colorado activity will be conducted in person with members of the public at the home location”; (iv) “Individuals working from home will not advertise, receive official mail directly, or permanently store any books or records at their remote location”; (v) “The Colorado licensee shall at all times exercise reasonable supervision of the licensable activity being performed at the home office and ensure sufficient safeguards to protect consumer information and data security”; and (vi) “The individual ceases conducting the activity from the home location as soon as reasonably possible, consistent with recommendations from the CDC, CDPHE, and applicable state health departments.”