C.R.S. § 5-18-101 Short title
5-18-101. Short title. The short title of this article 18 is the "Colorado Consumer Credit Reporting Act".
Colorado Consumer Credit Reporting Act
C.R.S. tit. 5, art. 18
in effectC.R.S. § 5-18-102 Legislative declaration
5-18-102. Legislative declaration. The general assembly finds and declares that the use of consumer reporting agencies is increasing rapidly as consumer credit transactions become the rule rather than the exception in every-day consumer purchasing. Consumer credit reports by consumer reporting agencies may report on a consumer's credit worthiness, credit standing, credit capacity, debts, character, general reputation, personal characteristics, or mode of living as factors to establish a consumer's eligibility for credit insurance or employment. When a consumer reporting agency undertakes a business that has the potential to profoundly affect an individual consumer's life, whether for good or ill, it is incumbent upon such agencies to ensure that the information they are providing is accurate. Inaccurate consumer credit reports directly impair the efficiency of the banking system and unfair credit reporting methods undermine the public confidence in the banking system. There is a need to ensure that consumer reporting agencies exercise their responsibilities with fairness, impartiality, and respect for the consumer's rights. The general assembly further finds and declares that, in the event the information provided by a consumer reporting agency in a consumer credit report is inaccurate, the consumer has the right to have that information corrected in a swift and uncomplicated way.
C.R.S. § 5-18-103 Definitions
5-18-103. Definitions. As used in this article 18, unless the context otherwise requires:
(1) "Adverse action" includes:
(a) The denial of, increase in any charge for, or reduction in the amount of insurance for personal, family, or household purposes;
(b) The denial of employment or any other decision for employment purposes that adversely affects a current or prospective employee; and
(c) An action or determination with respect to a consumer's application for credit under a credit arrangement that is adverse to the consumer's interests.
(2) "Consumer" means a natural person residing in the state of Colorado.
(3) (a) "Consumer report" means any written, oral, or other communication or any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, debts, character, general reputation, personal characteristics, or mode of living, that is used or expected to be used or collected, in whole or in part, as a factor to establish a consumer's eligibility for credit or insurance to be used for personal, family, or household purposes, employment purposes, or any other purpose authorized pursuant to applicable provisions of the federal "Fair Credit Reporting Act", 15 U.S.C. secs. 1681a and 1681b, as amended.
(b) "Consumer report" does not include:
(I) Any report containing information solely as to a transaction between the consumer and the person making the report;
(II) Any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device;
(III) Any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys a decision with respect to the request, if the third party advises the consumer of the name and address of the person to whom the request was made and the person makes the disclosures that must be made to the consumer pursuant to the provisions of the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681m, as amended, in the event of adverse action.
(4) "Consumer reporting agency" means any person that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties. "Consumer reporting agency" shall not include any business entity that provides check verification or check guarantee services only.
(5) "Credit scoring" means the practice of quantifying the credit risk a person presents using the person's history, characteristics, or attributes in a formula designed to objectively rate credit risk or insurance risk of loss.
(6) "Creditworthiness" means any entry in a consumer's credit file that impacts the ability of a consumer to obtain and retain credit, employment, business or professional licenses, investment opportunities, or insurance. Entries contained in a consumer file or in a consumer report that affect creditworthiness shall include, but not be limited to, payment information, defaults, judgments, liens, bankruptcies, collections, records of arrest and indictments, and multiple-credit inquiries.
(7) "Dwelling" means a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes any individual condominium unit, cooperative unit, mobile home, or trailer, if it is used as a residence.
(8) "Employment purposes", when used in connection with a consumer report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee.
(9) "File" means all of the information on the consumer that is recorded and retained by a consumer reporting agency regardless of how the information is stored.
if it is used as a residence.
(8) "Employment purposes", when used in connection with a consumer report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee.
(9) "File" means all of the information on the consumer that is recorded and retained by a consumer reporting agency regardless of how the information is stored.
(10) "Investigative consumer report" means a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer, reported on or with others with whom the consumer is acquainted or who may have knowledge concerning any of the items of information. The term does not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when the information was obtained directly from a creditor of the consumer or from the consumer.
(11) "Key factors" means all relevant elements or reasons adversely affecting a specific credit score assigned to a consumer, listed in the order of importance, based on the respective effects on the credit score.
(11.5) "Medical debt" means debt arising from health-care services, as defined in section 10-16-102 (33), or health-care goods, including products, devices, durable medical equipment, and prescription drugs. "Medical debt" does not include debt charged to a credit card unless the credit card is issued under an open-end or closed-end credit plan offered specifically for the payment of health-care services or health-care goods.
(12) "Person" means any natural person, firm, corporation, or partnership.
(13) "Proper identification" means information generally deemed sufficient to identify a person. If the consumer is unable to reasonably identify himself or herself with the information described above, a consumer reporting agency may require additional information concerning the consumer's employment and personal or family history in order to verify his or her identity.
(13.5) "Protected consumer" means a consumer who, at the time a security freeze request is made, is:
(a) Under sixteen years of age; or
(b) Represented by a representative.
(13.7) "Record" means a compilation of information that:
(a) Identifies a protected consumer;
(b) Is created by a consumer reporting agency solely for the purpose of complying with section 5-18-112.5; and
(c) Is not created or used to consider the protected consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or eligibility for other financial services.
(13.9) "Representative" means a:
(a) Parent of an individual who is under sixteen years of age; or
(b) Legal guardian who, pursuant to a testamentary or other trusteeship, power of attorney, or court appointment, is qualified to make decisions regarding the support, care, education, health, or welfare of an individual.
(14) "Reviewing the account" means activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.
(15) (a) "Security freeze" or "freeze" means a notice placed in a consumer report or record, at the request of a consumer or a protected consumer's representative and subject to certain exemptions, that prohibits the consumer reporting agency from releasing the consumer report or record or any information from it without the express authorization of the consumer or of the protected consumer's representative.
ecurity freeze" or "freeze" means a notice placed in a consumer report or record, at the request of a consumer or a protected consumer's representative and subject to certain exemptions, that prohibits the consumer reporting agency from releasing the consumer report or record or any information from it without the express authorization of the consumer or of the protected consumer's representative.
(b) "Security freeze" includes a notice:
(I) Placed on a record created under section 5-18-112.5 for a protected consumer for whom the consumer reporting agency does not have a consumer report; and
(II) That prohibits the consumer reporting agency from releasing the protected consumer's record except as provided in section 5-18-112.5.
(16) (a) "Sufficient proof of authority" means documentation demonstrating that a representative has authority to act on behalf of a protected consumer.
(b) "Sufficient proof of authority" includes:
(I) A court order, a copy of a valid power of attorney, a valid trust document, or another legal document that clearly establishes the authority of the representative to act on behalf of the protected consumer; or
(II) In the case of a representative who is a parent of the protected consumer, a certified or official copy of the protected consumer's birth certificate.
(17) (a) "Sufficient proof of identification" means documentation identifying a protected consumer or a representative.
(b) "Sufficient proof of identification" includes a copy of a social security card, a certified or official copy of a birth certificate, a copy of a valid driver's license, or a copy of a government-issued photo identification document.
C.R.S. § 5-18-104 Permissible purposes - prohibition
5-18-104. Permissible purposes - prohibition. (1) A consumer reporting agency may furnish a consumer report only under the following circumstances:
(a) In response to an order of a court having jurisdiction to issue such an order;
(b) In accordance with the written instructions of the consumer to whom it relates; and
(c) To a person which the consumer reporting agency has reason to believe:
(I) Intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving an extension of credit to, or review or collection of an account of, the consumer and if the consumer chooses to provide his or her social security number to the user, the user shall include the social security number with, or as a supplement to, a request for a consumer report, and include the social security number when transmitting subsequent credit information to a consumer reporting agency; or
(II) Intends to use the information for employment purposes only if an applicant or employee is first informed that a credit report may be requested in connection with his or her application for employment and the consumer consents in writing to the same; or
(III) Intends to use credit scoring information in connection with the underwriting or rating of insurance involving the consumer and the person establishes that the consumer has received written notification, or notification in the same medium as the application for insurance, that a credit report may be requested in connection with his or her application for insurance, and that credit scoring information may be used to determine either the consumer's eligibility for insurance or the premium to be charged to the consumer; or
(IV) Intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(V) Otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer; or
(VI) Intends to use the information for any purpose allowed under the federal "Fair Credit Reporting Act" and rules promulgated pursuant to that act.
(2) A consumer reporting agency may not, by contract or otherwise, prohibit a user of any consumer report or investigative consumer report from, upon request of the consumer, disclosing and explaining the contents of the report or providing a copy of the report to the consumer to whom it relates if adverse action against the consumer has been taken or is contemplated by the user of the consumer report or investigative consumer report, based in whole or in part on the report. No user or consumer reporting agency shall be held liable or otherwise responsible for a disclosed or copied report when acting pursuant to this subsection (2) nor shall disclosure or provision of a copy of the report, by themselves, make the user a consumer reporting agency.
C.R.S. § 5-18-105 Consumer reports - accuracy of information
5-18-105. Consumer reports - accuracy of information. Whenever a consumer reporting agency prepares a consumer report, including reports that include criminal justice records, the agency shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the consumer about whom the report relates, including the use of the consumer's social security number if, in accordance with section 5-18-104 (1)(c)(I), the consumer's social security number is provided to the consumer reporting agency by a person intending to use the information contained in a consumer report in connection with a credit transaction involving the consumer and the social security number was initially provided to the user by the consumer in connection with that transaction. A consumer reporting agency shall exclude sealed and expunged records from a consumer report, unless the user of the report demonstrates that the user is otherwise required to consider the information pursuant to state or federal statute, rule, or regulation.
C.R.S. § 5-18-106 Disclosures to consumers
5-18-106. Disclosures to consumers. (1) A consumer reporting agency shall, upon written or verbal request and proper identification of any consumer, clearly, accurately, and in a manner that is understandable to the consumer, disclose to the consumer, in writing, all information in its files at the time of the request pertaining to the consumer, including but not limited to:
(a) The names of all persons requesting credit information pertaining to the consumer during the prior twelve-month period and the date of each request;
(b) A set of instructions, presented in a manner that is understandable to the consumer, describing how information is presented on its written disclosure of the file; and
(c) A toll-free number for use in resolving the dispute if the consumer submitted a written dispute to the consumer reporting agency, which operates on a nationwide basis.
(2) (a) A consumer reporting agency shall notify a consumer, by letter sent by first-class mail, that the consumer reporting agency will provide the consumer with a disclosure copy of his or her consumer file at no charge and a toll-free telephone number to call to provide the consumer reporting agency with the information necessary to request a copy, when one of the following events occurs within a twelve-month period:
(I) The consumer reporting agency has received eight credit inquiries pertaining to the consumer; or
(II) The consumer reporting agency has received a report that would add negative information to a consumer's file.
(b) A consumer reporting agency need only send one letter to a consumer per twelve-month period pursuant to subsection (2)(a) of this section even if more than one event occurs in that period.
(c) Any letter mailed to a consumer pursuant to subsection (2)(a) of this section shall not contain any identifying information particular to that consumer including, but not limited to, social security number, place of employment, date of birth, or mother's maiden name.
(d) Any letter mailed to a consumer pursuant to subsection (2)(a) of this section may be a form letter; except that each letter shall advise the consumer of the number and type of events that occurred relating to the consumer that initiated the letter. The letter shall also include a notice or separate form the consumer may complete and return to the consumer reporting agency to request a free copy of the consumer's credit report.
(e) Each consumer reporting agency shall, upon request of a consumer, provide the consumer with one disclosure copy of his or her file per year at no charge whether or not the consumer has made the request in response to the notification required in subsection (2)(a) of this section. If the consumer requests more than one disclosure copy of his or her file per year pursuant to this subsection (2)(e), the consumer reporting agency may charge the consumer up to eight dollars for each additional disclosure copy.
C.R.S. § 5-18-107 Credit scoring related to the extension of credit secured by a dwelling - definition
5-18-107. Credit scoring related to the extension of credit secured by a dwelling - definition. (1) In connection with an application for an extension of credit for a consumer purpose that is to be secured by a dwelling, the consumer reporting agency shall, upon the written request of the consumer, contained either in the application for an extension of credit or in a separate document, disclose to the consumer the following:
(a) The consumer's current credit score or the most recent credit score of the consumer that was previously calculated by the consumer reporting agency;
(b) The range of possible credit scores under the model used;
(c) The key factors, if any, not to exceed four, that adversely affected the credit score of the consumer in the model used;
(d) The date on which the credit score was created; and
(e) The name of the person or entity that provided the credit score or the credit file on the basis of which the credit score was created.
(2) (a) Nothing in subsection (1) of this section shall be construed to compel a consumer reporting agency to develop or disclose a credit score if the agency does not:
(I) Distribute scores that are used in connection with extensions of credit secured by residential real estate; or
(II) Develop credit scores that assist creditors in understanding the general credit behavior of the consumer and predicting future credit behavior.
(b) Nothing in subsection (1) of this section shall be construed to require a consumer reporting agency that distributes credit scores developed by another person or entity to provide further explanation of those scores or to process a dispute that may arise about information; except that the consumer reporting agency shall be required to provide to the consumer the name of, and current contact information for, the person or entity that developed the score or developed the methodology for the score.
(c) Nothing in subsection (1) of this section shall be construed to require a consumer reporting agency to maintain credit scores in its files.
(d) Nothing in subsection (3) of this section shall be construed to compel disclosures of a credit score except upon specific request of a consumer. If a consumer requests a credit file and not the credit score, then the consumer shall be provided with the credit file together with a statement that the consumer may request and obtain a credit score.
(3) Pursuant to subsection (1) of this section, a consumer reporting agency shall supply to a consumer:
(a) A credit score that is derived from a credit scoring model that is widely distributed to users of credit scores by that consumer reporting agency in connection with any extension of credit secured by a dwelling; or
(b) A credit score accompanied by information specifically required to be disclosed pursuant to subsection (1) of this section that assists the consumer in understanding the credit scoring assessment of the credit behavior of the consumer and predictions about future credit behavior.
(4) For purposes of this section, "credit score" means a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default. The numerical value or the categorization derived from this analysis may also be referred to as a "risk predictor" or "risk score". "Credit score" does not include any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including, but not limited to, the loan value ratio, the amount of down payment, or a consumer's financial assets. "Credit score" does not include other elements of the underwriting process or underwriting decision.
(5) Notwithstanding any other provision of this article 18 to the contrary, a consumer reporting agency may charge a reasonable fee for disclosing a credit score.
C.R.S. § 5-18-108 Charges for certain disclosures
5-18-108. Charges for certain disclosures. (1) A consumer reporting agency shall not impose a charge for:
(a) A request for a copy of the consumer's file made within sixty days after adverse action is taken; or
(b) Notifying any person designated by the consumer, pursuant to the applicable provisions of the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681i, as amended, of the deletion of information that is found to be inaccurate or that can no longer be verified; or
(c) A set of instructions for understanding the information presented on the consumer report and a toll free telephone number that consumers may utilize to obtain additional assistance concerning the consumer report; or
(d) The first copy of a consumer disclosure provided to a consumer each calendar year pursuant to section 5-18-106 (2)(a).
(2) For all other disclosures to consumers of information pertaining to the consumer, the consumer reporting agency may impose a reasonable charge, not to exceed the retail price of a written report rendered in the normal course of business to the customers of the agency for each request for information.
C.R.S. § 5-18-109 Reporting of information prohibited - exceptions - repeal
5-18-109. Reporting of information prohibited - exceptions - repeal. (1) Except as authorized under subsection (2) of this section, a consumer reporting agency shall not make any consumer report containing any of the following items of information:
(a) Cases under title 11 of the United States Code, or under the federal bankruptcy act that, from the date of entry of the order for relief or the date of adjudication, predate the report by more than ten years;
(b) Suits and judgments that, from the date of entry, predate the report by more than seven years or by more than the governing statute of limitations, whichever is the longer period;
(c) Paid tax liens that, from the date of payment, predate the report by more than seven years;
(d) Accounts placed for collection or charged to profit and loss that predate the report by more than seven years;
(e) Records of arrest, indictment, or conviction of a crime that, from the date of disposition, release, or parole, predate the report by more than seven years;
(e.5) Sealed records, expunged records, and records that did not result in a conviction;
(f) (I) Any adverse item of information that the consumer reporting agency knows or should know concerns medical debt.
(II) This subsection (1)(f) is repealed, effective July 1, 2028.
(g) Any other adverse item of information that predates the report by more than seven years.
(2) The provisions of subsection (1) of this section do not apply to the case of any consumer report to be used in connection with a credit transaction involving, or that may reasonably be expected to involve, a principal amount that exceeds the national conforming loan limit value for a one-unit property as determined annually by the federal housing finance agency.
(3) A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction or a direct marketing transaction, a consumer report that contains medical information about a consumer unless the consumer consents to the furnishing of the report.
(4) A consumer reporting agency shall not include, in a consumer report made to a person requesting credit information pertaining to a consumer, the names of any other persons who have requested credit information pertaining to that consumer or the number of such inquiries made more than one year preceding the date of the consumer report; except that such information shall be retained for two years and provided to the consumer as provided in this article 18.
(5) Notwithstanding the provisions of subsection (4) of this section, a consumer reporting agency shall not furnish to any person, including a developer of credit scoring, a record of inquiries in connection with a credit or insurance transaction that is not initiated by the consumer. The term "credit or insurance transaction that is not initiated by the consumer" does not include inquiries resulting from the collection of an account or for purposes of reviewing an account.
(6) (a) The department of revenue shall contract with one or more entities to conduct a study to consider the impact of subsection (1)(f) of this section on consumers' creditworthiness, access to credit, medical debt burden, and economic stability, including consideration of the impacts of subsection (1)(f) of this section on persons of different racial groups and income levels. On or before January 1, 2028, the department of revenue shall deliver the conclusions of the study to the business affairs and labor committee of the house of representatives and the business, labor, and technology committee of the senate, or to any successor committees.
(b) This subsection (6) is repealed, effective July 1, 2028.
C.R.S. § 5-18-110 Procedure for disputed information
5-18-110. Procedure for disputed information. (1) If the completeness or accuracy of any item of information contained in the consumer's file is disputed by the consumer and the consumer notifies the consumer reporting agency directly of the dispute, the agency shall reinvestigate the item free of charge and record the current status of the disputed information on or before thirty business days after the date the agency receives notice conveyed by the consumer. The consumer reporting agency shall provide the consumer with the option of speaking directly to a representative of the agency to notify the agency of disputed information contained in the consumer's file.
(2) On or before five business days after the date a consumer reporting agency receives notice of a dispute from a consumer in accordance with subsection (1) of this section, the agency shall provide notice of the dispute to all persons who provided any item of information in dispute.
(3) Notwithstanding subsection (1) of this section, a consumer reporting agency may terminate a reinvestigation of information disputed by a consumer under subsection (1) if the agency reasonably determines that the consumer's dispute is frivolous or irrelevant. Upon making such a determination, a consumer reporting agency shall promptly notify the consumer of its determination and reasons, by mail, or if authorized by the consumer for that purpose, by telephone. The presence of contradictory information in the consumer's file does not in and of itself constitute reasonable grounds for determining the dispute is frivolous or irrelevant.
(4) If, after a reinvestigation under subsection (1) of this section of any information disputed by a consumer, the information is inaccurate or cannot be verified, the consumer reporting agency shall promptly delete the information from the consumer's file, revise the file, provide the consumer and, at the request of the consumer, any person that, within the last twelve months, requested the disputed information with a revised consumer report indicating that it is a revised consumer report, and refrain from reporting the information in subsequent reports. The consumer reporting agency shall advise the consumer that he or she has the right to have a copy of the revised consumer report sent by the consumer reporting agency to any person that requested the disputed information within the last twelve months.
(5) Information deleted pursuant to subsection (4) of this section may not be reinserted in the consumer's file unless the person who furnishes the information reinvestigates and states in writing or by electronic record to the consumer reporting agency that the information is complete and accurate.
(6) A consumer reporting agency shall provide written notice of the results of any reinvestigation or reinsertion made pursuant to this section within five business days of the completion of the reinvestigation or reinsertion. The notice shall include:
(a) A statement that the reinvestigation is complete;
(b) A statement of the determination of the consumer reporting agency on the completeness or accuracy of the disputed information;
(c) A copy of the consumer's file or consumer report and a description of the results of the reinvestigation;
(d) A notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the consumer reporting agency, including the name, business address, and, if available, the telephone number of any person contacted in connection with that information;
(e) A notification that the consumer has the right, pursuant to the applicable provisions of the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681i, as amended, to add a statement to the consumer's file disputing the accuracy or completeness of the information; and
e name, business address, and, if available, the telephone number of any person contacted in connection with that information;
(e) A notification that the consumer has the right, pursuant to the applicable provisions of the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681i, as amended, to add a statement to the consumer's file disputing the accuracy or completeness of the information; and
(f) A notification of the consumer's rights to dispute resolution under section 5-18-116, which are available after the consumer has followed all dispute procedures described in this section and has received the notice specified under this subsection (6).
(7) Nothing in this section shall be construed to require a person who obtains a consumer report for resale to alter or correct any inaccuracy in the consumer report if the consumer report was not assembled or prepared by the person.
(8) The consumer reporting agency shall provide a person who provides credit information to the agency with the option to speak directly with a representative of the agency or to submit corrections to previously reported information by facsimile or other automated means when inaccurate information that was reported by the credit information provider appears on a consumer's file. The consumer reporting agency shall, in a period not to exceed five business days from the receipt of the faxed or automated information regarding the corrections, correct the inaccuracies on the consumer's file and, upon request, communicate the corrections to the person who submitted the initial request for corrections. The credit information provider's communication shall include information established by the consumer reporting agency that identifies him or her as the credit information provider who provided the original inaccurate information. Nothing in this subsection (8) shall be construed to prohibit a consumer reporting agency from correcting inaccurate information in a consumer's file or a consumer report at any time.
C.R.S. § 5-18-111 Consumer report information block
5-18-111. Consumer report information block. (1) (a) A consumer reporting agency shall, within thirty days after the receipt of a police report or order pursuant to this subsection (1)(a), permanently block the reporting of any information that a consumer identifies on his or her consumer report as being subject to either a police report or a court order referenced in subsection (1)(a)(I) or (1)(a)(II) of this section if the consumer provides a consumer reporting agency with proof of the consumer's identification and a copy of:
(I) A police report that alleges that a person other than the consumer obtained or recorded, by means of fraud, theft, or other violation of the "Colorado Criminal Code", personal identifying information of the consumer without authorization from the consumer and that the person used the information to obtain, or attempt to obtain, credit, goods, services, or money in the name of the consumer without the consumer's consent; or
(II) A certified court order issued pursuant to section 18-1.3-603 (7).
(b) The consumer reporting agency shall promptly notify the person who furnished the information that a police report or court order has been filed, that a block has been requested, and the effective date of the block.
(2) (a) A consumer reporting agency may decline to block or may rescind any block of consumer information if, in the exercise of good faith and reasonable judgment, the consumer reporting agency believes:
(I) The information was blocked due to a misrepresentation of fact by the consumer relevant to the request to block under this section;
(II) The consumer agrees that the blocked information or portions of the blocked information were blocked in error;
(III) The consumer knowingly obtained possession of goods, services, or money as a result of the blocked transaction or transactions or the consumer should have known that he or she obtained possession of goods, services, or money as a result of the blocked transaction or transactions; or
(IV) The consumer so requests in writing and presents proof of the consumer's identity.
(b) A consumer reporting agency shall decline to block or shall rescind any block of consumer information if, in the case of a block or block request based upon the filing of an order, the sentencing court amends, dismisses, or withdraws its prior order to correct records issued pursuant to section 18-1.3-603 (7), and the consumer provides documentation from the court and proof of the consumer's identity.
(3) If a block of credit information is declined or rescinded pursuant to this section, the consumer reporting agency shall promptly notify the consumer in the same manner as consumers are notified of the reinsertion of information pursuant to section 5-18-110. The prior presence of the blocked information in the consumer reporting agency's file on the consumer is not evidence of whether the consumer knew or should have known that he or she obtained possession of any goods, services, or money.
(4) This section does not apply to a consumer reporting agency that acts as a reseller of information by assembling and merging information contained in the data base of one or more other consumer reporting agencies and that does not maintain a data base of the assembled or merged information from which new consumer reports are produced.
C.R.S. § 5-18-112 Security freeze - timing - covered entities - cost
5-18-112. Security freeze - timing - covered entities - cost. (1) (a) A consumer may elect to place a security freeze on his or her consumer report by making a request in writing by certified mail to a consumer reporting agency.
(b) Except as provided in subsections (6)(b) and (11) of this section, if a security freeze is in place, information from a consumer report may not be released to a third party without prior, express authorization from the consumer.
(c) This section does not prevent a consumer reporting agency from advising a third party that a security freeze is in effect with respect to the consumer report.
(2) (a) A consumer reporting agency shall place a security freeze on a consumer report no later than five business days after receiving the request from the consumer.
(b) The consumer reporting agency shall send a written confirmation of the security freeze to the consumer within ten business days and, with the confirmation, shall provide the consumer with a unique personal identification number or password to be used by the consumer when providing authorization for the release of his or her consumer report to a specific party or for a specific period of time.
(3) If a consumer wishes to allow his or her consumer report to be accessed by a specific party or for a specific period of time while a freeze is in place, he or she shall contact the consumer reporting agency, request that the freeze be temporarily lifted, and provide the following:
(a) Proper identification;
(b) The unique personal identification number or password provided by the consumer reporting agency pursuant to subsection (2)(b) of this section; and
(c) The proper information regarding the third party who is to receive the consumer report or the time period that the report shall be available to users of the consumer report.
(4) A consumer reporting agency that receives a request from a consumer to temporarily lift a freeze on a consumer report pursuant to subsection (3) of this section, shall comply with the request no later than three business days after receiving the request.
(5) A consumer reporting agency may develop procedures involving the use of telephone, fax, internet, or other electronic media to receive and process a request from a consumer to place a freeze or to temporarily lift a freeze on a consumer report pursuant to subsection (3) of this section in an expedited manner.
(6) A consumer reporting agency shall remove or temporarily lift a freeze placed on a consumer report only in the following cases:
(a) Upon consumer request, pursuant to subsection (3) or (9) of this section; or
(b) If the consumer report was frozen due to a material misrepresentation of fact by the consumer or somebody purporting to be the consumer. If a consumer reporting agency intends to remove a freeze on a consumer report pursuant to this subsection (6)(b), the consumer reporting agency shall notify the consumer in writing prior to removing the freeze placed on the consumer report.
(7) If a third party requests access to a consumer report on which a security freeze is in effect, and the request is in connection with an application for credit or other use, and the consumer does not allow his or her consumer report to be accessed by that specific party or during that period of time, the third party may treat the application as incomplete.
(8) If a consumer requests a security freeze, the consumer reporting agency shall disclose the process of placing and temporarily lifting a freeze and the process for allowing access to information from the consumer report to a specific party or for a specific period of time while the freeze is in place.
party or during that period of time, the third party may treat the application as incomplete.
(8) If a consumer requests a security freeze, the consumer reporting agency shall disclose the process of placing and temporarily lifting a freeze and the process for allowing access to information from the consumer report to a specific party or for a specific period of time while the freeze is in place.
(9) Except as otherwise provided pursuant to subsection (6)(b) of this section, a security freeze shall remain in place until the consumer requests that the security freeze be removed. A consumer reporting agency shall remove a security freeze within three business days of receiving a request for removal from the consumer, who provides both of the following:
(a) Proper identification; and
(b) The unique personal identification number or password provided by the consumer reporting agency pursuant to subsection (2)(b) of this section.
(10) A consumer reporting agency shall require proper identification of the person making a request to place a security freeze in a manner consistent with the requirements of this section.
(11) The provisions of this section shall not apply to the use of a consumer report by or for any of the following:
(a) A person or entity, or a subsidiary, affiliate, or agent of that person or entity that owns a financial obligation owing by the consumer to that person or entity, including a demand deposit account, or to whom the consumer issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, debt, or negotiable instrument, and lawful associated costs;
(b) An assignee or a prospective assignee of a financial obligation owing by the consumer to a person or entity in subsection (11)(a) of this section;
(c) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under subsection (3) of this section for purposes of facilitating the extension of credit or other permissible use;
(d) A state or local agency, law enforcement agency, trial court, private collection agency, or person acting pursuant to a court order, warrant, or subpoena authorizing the use of the consumer report;
(e) A child support enforcement agency acting to enforce child support obligations;
(f) The department of health care policy and financing or its agents or assigns acting to investigate fraud;
(g) The department of human services or its agents or assignees acting to investigate fraud;
(h) The department of revenue or its agents or assigns acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities or exercise any of its statutory authority;
(i) The use of credit information for the purposes of prescreening as provided for by the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681 et seq.;
(j) Any person or entity administering a credit file monitoring subscription service to which the consumer has subscribed;
(k) Any person or entity for the purpose of providing a consumer with a copy of his or her consumer report upon the consumer's request;
(l) Any person or entity for use in setting or adjusting a rate, adjusting a claim, or underwriting for insurance purposes;
(m) A pension plan acting to determine the consumer's eligibility for plan benefits or payments authorized by law or to investigate fraud;
(n) A person conducting a pre-sentence investigation in a criminal matter or a probation officer using this information for supervision of an offender;
(o) A collections investigator or other person engaged in the collecting of fees, fines, or restitution assessed in a court proceeding;
(p) A licensed hospital with which the consumer has or had a contract, or a debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the contract, account, or debt;
on for supervision of an offender;
(o) A collections investigator or other person engaged in the collecting of fees, fines, or restitution assessed in a court proceeding;
(p) A licensed hospital with which the consumer has or had a contract, or a debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the contract, account, or debt;
(q) A law enforcement agency or its agents acting to investigate a crime or conducting a criminal background check.
(12) (a) Fees for requesting a security freeze, temporarily lifting a security freeze, and permanently removing a security freeze from consumer reports may be charged only in accordance with this subsection (12).
(b) A consumer reporting agency may not charge a fee for a consumer's first request to place a security freeze on his or her consumer report.
(c) Except as provided for in subsections (12)(a) and (12)(b) of this section, a consumer reporting agency may charge a consumer a reasonable fee of no more than ten dollars for:
(I) A temporary lift for a period of time or permanent removal of a security freeze from the consumer report; or
(II) A subsequent request for a security freeze of the consumer report after the consumer's first request for a security freeze has been permanently removed from his or her consumer report.
(d) Except as provided for in subsections (12)(a) and (12)(b) of this section, a consumer reporting agency may charge a fee not to exceed twelve dollars for temporarily lifting a security freeze on the consumer report for a specific party.
C.R.S. § 5-18-112.5 Security freeze for protected consumers
5-18-112.5. Security freeze for protected consumers. (1) A representative may place a security freeze on a protected consumer's consumer report or record by:
(a) Submitting a written request to a consumer reporting agency in the manner prescribed by that agency; and
(b) Providing the consumer reporting agency with sufficient proof of authority and sufficient proof of identification of the representative.
(2) (a) If a consumer reporting agency does not have a consumer report pertaining to a protected consumer when the consumer reporting agency receives a request for a security freeze under subsection (1) of this section, the consumer reporting agency shall create a record for the protected consumer and place a security freeze on the record, only if the protected consumer's representative requests, in writing, a security freeze and provides required documentation in accordance with subsection (1) of this section.
(b) A protected consumer's record created pursuant to subsection (2)(a) of this section shall not be used to consider the protected consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or eligibility for other financial services.
(3) A consumer reporting agency shall place a security freeze on a consumer report or record within ten business days after confirming the authenticity of a security freeze request made in accordance with this section.
(4) (a) Except as provided in subsections (7)(c) and (9) of this section, if a security freeze is in place on a protected consumer's consumer report or record, information from the consumer report or record shall not be released to a third party without prior, express authorization from the protected consumer's representative or, if a protected consumer has provided the documentation required by subsection (7)(b) of this section, from the protected consumer.
(b) A consumer reporting agency may advise a third party that a security freeze is in effect with respect to a protected consumer's consumer report or record.
(5) Within ten business days after instituting a security freeze on a protected consumer's consumer report or record, the consumer reporting agency shall:
(a) Send written confirmation of the security freeze to the address on file; and
(b) Provide the representative with instructions for removing the security freeze.
(6) A consumer reporting agency shall not state or imply to any person that a security freeze reflects a negative credit score, a negative credit history, or a negative credit rating.
(7) (a) A security freeze on a protected consumer's consumer report or record remains in effect until the protected consumer's representative or, if authorized under this subsection (7), the protected consumer requests removal of the security freeze.
(b) Within ten business days after confirming the authenticity of a request, a consumer reporting agency shall remove a security freeze from a protected consumer's consumer report or record if a protected consumer or the protected consumer's representative requests that the security freeze be removed and provides to the consumer reporting agency sufficient proof of identification, and:
(I) If the protected consumer's representative makes the request, sufficient proof of authority; or
(II) If the protected consumer makes the request, documentation demonstrating that the representative's proof of authority used to request the security freeze is no longer valid. Such documentation may include proof that the protected consumer is sixteen years of age or older or that the representative's appointment is no longer valid.
entative makes the request, sufficient proof of authority; or
(II) If the protected consumer makes the request, documentation demonstrating that the representative's proof of authority used to request the security freeze is no longer valid. Such documentation may include proof that the protected consumer is sixteen years of age or older or that the representative's appointment is no longer valid.
(c) If the consumer report or record was frozen due to a material misrepresentation of fact by the protected consumer's representative or someone purporting to be the protected consumer's representative, the consumer reporting agency shall remove the security freeze from the protected consumer's consumer report or record after notifying the protected consumer in writing.
(8) Pursuant to any procedures developed in accordance with section 5-18-112 (5), a consumer reporting agency may use e-mail or other electronic media to receive and process a security freeze request.
(9) This section does not apply to:
(a) The use of a consumer report or record by or for any of the users or uses listed in section 5-18-112 (11);
(b) A consumer reporting agency providing a copy of the protected consumer's consumer report or record to the protected consumer or the protected consumer's representative if requested by the protected consumer or protected consumer's representative; or
(c) An entity listed in section 5-18-115 (2).
(10) A consumer reporting agency shall not charge a fee to create a record in accordance with this section or for a request to place or remove a security freeze on a protected consumer's consumer report or record. A consumer reporting agency also shall not charge a fee to place, temporarily lift, temporarily lift for a specific party, or permanently remove a security freeze on the consumer report or record of any consumer under eighteen years of age.
(11) A third party may treat a protected consumer's application for credit as incomplete if:
(a) The third party requested access to the protected consumer's consumer report or record in connection with an application for credit; and
(b) The protected consumer's consumer report or record is frozen pursuant to this section.
(12) If a consumer reporting agency violates a security freeze placed on a protected consumer's consumer report or record by releasing information subject to the security freeze without proper authorization to release the information, the consumer reporting agency shall notify the protected consumer's representative or protected consumer in writing of the release of information within five business days after discovering the release of information. The notice must include the specific information released and the name, address, phone number, and, if available, e-mail address of the recipient of the information.
(13) A protected consumer's representative or, if a protected consumer has demonstrated that his or her representative's proof of authority is no longer valid pursuant to subsection (7)(b)(II) of this section, a protected consumer may dispute information in the protected consumer's consumer report or record pursuant to the procedures set forth in section 5-18-110 and may request that a consumer reporting agency block the reporting of information in the protected consumer's consumer report or record pursuant to section 5-18-111.
C.R.S. § 5-18-113 Notice of rights
5-18-113. Notice of rights. (1) At any time that a consumer is required to receive a summary of rights required under section 609 of the federal "Fair Credit Reporting Act" or under state law, the following notice shall be included:
State Consumers Have the Right to Obtain a Security Freeze
You may obtain a security freeze on your consumer report to protect your privacy and ensure that credit is not granted in your name without your knowledge, except as provided by law. You have a right to place a security freeze on your consumer report to prohibit a consumer reporting agency from releasing any information in your consumer report without your express authorization or approval, except as the law allows.
You will not be initially charged to place a security freeze on your consumer report. However, you will be charged a fee of no more than ten dollars to temporarily lift the freeze for a period of time, to permanently remove the freeze from your consumer report, or when you make a subsequent request for a freeze to be placed on your consumer report. As well, you may be charged a fee of no more than twelve dollars to temporarily lift the freeze for a specific party.
The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. When you place a security freeze on your consumer report, within five business days you will be provided procedures for the temporary release of your consumer report to a specific party or parties or for a period of time after the security freeze is in place. To provide that authorization, you must contact the consumer reporting agency and provide the proper information regarding the third party or parties who are to receive the consumer report or the period of time for which the report shall be available to users of the consumer report.
A consumer reporting agency that receives a request from a consumer to temporarily lift a security freeze on a consumer report shall comply with the request no later than three business days after receiving the request.
A security freeze does not apply to circumstances where you have an existing account relationship, and a copy of your report is requested by your existing creditor or its agents or affiliates for certain types of account review, collection, fraud control, or similar activities.
You should be aware that using a security freeze to take control over who gains access to the personal and financial information in your consumer report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding new loans, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular phone, utilities, digital signature, internet credit card transaction, or other services, including an extension of credit at the point of sale. You should plan ahead and lift a security freeze either completely if you are shopping around, or specifically for a certain creditor a few days before actually applying for new credit.
You have the right to bring a civil action or submit to binding arbitration against a consumer reporting agency to enforce an obligation under the security freeze law after following specified dispute procedures and having received the necessary notice.
C.R.S. § 5-18-113.5 Notice of rights regarding protected consumers
5-18-113.5. Notice of rights regarding protected consumers. Whenever a consumer reporting agency is required to provide a summary of rights to a consumer under section 609 of the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681g, as amended, or under state law, the following notice must be included:
State Consumers Have the Right to Obtain a
Security Freeze for Their Children or Legal Wards
You may obtain from a consumer reporting agency a credit report security freeze for your child who is under sixteen years of age or for your legal ward. If a consumer report has not yet been created for your child or legal ward, you may request that a consumer reporting agency create a consumer record for him or her and place a security freeze on his or her consumer record. You will not be charged to have a security freeze placed on your child's or legal ward's consumer report or to have a consumer record created for your child or legal ward and to have a security freeze placed on the consumer record. You will not be charged to have a security freeze placed on or removed from your child's or legal ward's credit report or record.
C.R.S. § 5-18-114 Security freeze - prohibition of changing official information in credit report or record
5-18-114. Security freeze - prohibition of changing official information in credit report or record. If a security freeze is in place, a consumer reporting agency shall not change any of the following official information in a consumer report or record without sending a written notice of the change to the consumer or to a protected consumer's representative within thirty days after the change is posted to the consumer's or protected consumer's file: Name, date of birth, social security number, and address. Written notice is not required for technical modifications of a consumer's or protected consumer's official information, including name and street abbreviations, complete spellings, or transposition of numbers or letters. In the case of an address change, the consumer reporting agency shall send the written notice to both the new address and the former address.
C.R.S. § 5-18-115 Security freeze - exemptions
5-18-115. Security freeze - exemptions. (1) (a) Except as specified in subsection (1)(b) of this section, sections 5-18-112 to 5-18-114 do not apply to a consumer reporting agency that:
(I) Acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer reporting agency or multiple consumer reporting agencies; and
(II) Does not maintain a permanent database of credit information from which new consumer reports or records are produced.
(b) A consumer reporting agency shall honor any security freeze placed on a consumer report or record by another consumer reporting agency.
(2) The following entities are not required to place a security freeze in a consumer report or record:
(a) A check service or company or fraud prevention service or company that issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payments;
(b) A deposit account information service or company that issues reports regarding account closures due to fraud, substantial overdrafts, or automatic teller machine abuse or similar negative information regarding a consumer or protected consumer to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution;
(c) A fraud prevention service or company issuing reports to prevent or investigate fraud.
C.R.S. § 5-18-116 Consumer's right to file action in court or arbitrate disputes
5-18-116. Consumer's right to file action in court or arbitrate disputes. (1) A consumer, protected consumer, or protected consumer's representative may bring an action to enforce any obligation a consumer reporting agency has to a consumer, protected consumer, or protected consumer's representative under this article 18 in any court of competent jurisdiction as provided by the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681 et seq., as amended, or submit an enforcement action to binding arbitration, in the manner set forth in the rules of the American Arbitration Association, to determine whether the consumer reporting agency met its obligations under this article 18 after the consumer, protected consumer, or protected consumer's representative has followed, as applicable:
(a) All dispute procedures in section 5-18-110 and has received the notice specified in section 5-18-110 (6);
(b) All of the block procedures in section 5-18-111; or
(c) All of the freeze procedures in section 5-18-112 or 5-18-112.5.
(2) An arbitrator's decision pursuant to this section does not affect the validity of any obligations or debts owed to any party. A successful party to any arbitration proceeding shall be compensated for the costs and attorney fees of the proceeding as determined by the court or arbitration. A consumer, protected consumer, or protected consumer's representative shall not submit more than one action to arbitration against any consumer reporting agency during any one-hundred-twenty-day period.
(3) The results of an arbitration action brought against a consumer reporting agency doing business in this state shall be communicated in a timely manner with all other consumer reporting agencies doing business in this state. If, as a result of an arbitration, a determination is made in favor of the consumer, protected consumer, or protected consumer's representative, any adverse information in the consumer's or protected consumer's file, report, or record shall be blocked, removed, or stricken in a timely manner, or the consumer report or record shall be frozen within five days after receipt of the determination by the consumer reporting agency. If the adverse information is not blocked, removed, or stricken, or the file is not frozen, the consumer, protected consumer, or protected consumer's representative may bring an action against the noncomplying agency pursuant to this section notwithstanding the one-hundred-twenty-day waiting period.
C.R.S. § 5-18-117 Violations
5-18-117. Violations. (1) A consumer reporting agency that willfully violates this article 18 or the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681c, as amended, is liable for three times the amount of actual damages or one thousand dollars, whichever is greater, for a violation of section 5-18-112 or 5-18-112.5, or for each inaccurate or unblocked entry in the consumer's or protected consumer's file that was disputed or alleged to be unauthorized in accordance with section 5-18-111 by the consumer, protected consumer, or protected consumer's representative, plus reasonable attorney fees and costs.
(2) (a) A consumer reporting agency that negligently violates this article 18 or the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681c, as amended, is liable for the greater of actual damages or one thousand dollars for each violation of section 5-18-112 or 5-18-112.5, or for each inaccurate or unblocked entry in the consumer's or protected consumer's file that was disputed or alleged by the consumer, protected consumer, or protected consumer's representative to be unauthorized in accordance with section 5-18-111, that affects the consumer's or protected consumer's creditworthiness, as defined in section 5-18-103 (6), plus reasonable attorney fees and costs if:
(I) Within thirty days after receiving notice of dispute from a consumer, protected consumer, or protected consumer's representative in accordance with section 5-18-110, the consumer reporting agency does not:
(A) Correct the complained of items or activities; and
(B) Send the consumer, protected consumer, or protected consumer's representative and, upon request of the consumer, protected consumer, or protected consumer's representative, any person who has requested the consumer information, written notification of the corrective action, in accordance with section 5-18-110 (6), 5-18-112, or 5-18-112.5; or
(II) Within thirty days after receiving a copy of a police report alleging, or a certified court order finding, unauthorized activity, the consumer reporting agency does not block the information in accordance with section 5-18-111.
(b) A consumer reporting agency that negligently violates this article 18 or the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681c, as amended, is liable for the greater of actual damages or one thousand dollars for all violations of section 5-18-112 or 5-18-112.5 or all inaccurate or unblocked entries in the consumer's or protected consumer's file that were disputed or alleged by the consumer, protected consumer, or protected consumer's representative to be unauthorized in accordance with section 5-18-111, 5-18-112, or 5-18-112.5 and that did not affect the consumer's or protected consumer's creditworthiness, plus reasonable attorney fees and costs if:
(I) Within thirty days after receiving notice of dispute from a consumer, protected consumer, or protected consumer's representative in accordance with section 5-18-110, the consumer reporting agency does not:
(A) Correct the complained of items or activities; and
(B) Send to the consumer, protected consumer, or protected consumer's representative and, if requested by the consumer, protected consumer, or protected consumer's representative, to any person who has requested the consumer information, written notification of the corrective action, in accordance with section 5-18-110 (6), 5-18-112, or 5-18-112.5; or
(II) Within thirty days after receiving a copy of a police report alleging, or a certified court order finding, unauthorized activity, the consumer reporting agency does not block the information in accordance with section 5-18-111.
person who has requested the consumer information, written notification of the corrective action, in accordance with section 5-18-110 (6), 5-18-112, or 5-18-112.5; or
(II) Within thirty days after receiving a copy of a police report alleging, or a certified court order finding, unauthorized activity, the consumer reporting agency does not block the information in accordance with section 5-18-111.
(3) In addition to the damages assessed under subsections (1) and (2) of this section, if, ten days after the entry of any judgment for damages, the consumer's or protected consumer's file is still not corrected, blocked, or frozen by the consumer reporting agency, the assessed damages shall be increased to one thousand dollars per day per unfrozen consumer report or record or inaccurate or unblocked entry that remains in the consumer's or protected consumer's file until the inaccurate entry is corrected or blocked, or the consumer report or record is frozen.
C.R.S. § 5-18-118 Provisions of article cumulative
5-18-118. Provisions of article cumulative. The provisions of this article 18 are cumulative, and any action taken under the provisions of this article 18 shall not constitute an election to take any such action to the exclusion of any other action authorized by law; except that a credit reporting agency shall not be subject to suit with respect to any issue that was the subject of an arbitration proceeding brought pursuant to section 5-18-116.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-05.docxFetched: 10/6/2026