(1) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector or collection agency shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice with the disclosures specified in subsections (1)(a) to (1)(e) of this section. If the disclosures are placed on the back of the notice, the front of the notice shall contain a statement notifying consumers of that fact. The disclosures shall state:
(a) The amount of the debt;
(b) The name of the creditor to whom the debt is owed;
(c) That, unless the consumer disputes the validity of the debt or any portion of the debt within thirty days after the consumer's receipt of the notice, the debt will be assumed to be valid by the debt collector or collection agency;
(d) That, if the consumer notifies the debt collector or collection agency in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector or collection agency will obtain verification of the debt or a copy of a judgment against the consumer and a copy of the verification or judgment will be mailed to the consumer by the debt collector or collection agency;
(e) That upon the consumer's written request within the thirty-day period, the debt collector or collection agency will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(2) If the consumer notifies the debt collector or collection agency in writing within the thirty-day period described in subsection (1)(c) of this section that the debt, or any portion thereof, is disputed or that the consumer requests the name and address of the original creditor, the debt collector or collection agency shall cease collection of the debt, or any disputed portion thereof, until the debt collector or collection agency obtains verification of the debt or a copy of a judgment or the name and address of the original creditor and mails a copy of the verification or judgment or name and address of the original creditor to the consumer.
(3) The failure of a consumer to dispute the validity of a debt under this section shall not be construed by any court as an admission of liability by the consumer.
(4) It shall be an affirmative defense to any action based upon failure of a debt collector or collection agency to comply with this section that the debt collector or collection agency believed, in good faith, that the debtor was other than a natural person.
(5) Upon written request by the consumer and without fee to the consumer, a debt collector or collection agency collecting on a medical debt shall cease collection until it can provide an itemized statement to the consumer after the request is received. The itemized statement must include:
(a) The name and address of the medical creditor;
(b) The date or dates of service;
(c) The date or dates the medical debt was incurred;
(d) A detailed list of the specific health-care services and medical products or devices, if any, provided to the consumer;
(e) The name of the facility where health-care services were provided or the name of the merchant where the consumer purchased medical products, devices, or durable medical goods;
(f) The amount of the principal for any medical debt incurred;
(g) An itemization of the current amount of the debt due at the time the itemized statement is generated, reflecting interest, fees, payments, and credits since the dates described in subsections (5)(b) and (5)(c) of this section, and including negotiated insurance rates, financial assistance applied, or other discounts;
(h) For medical debt from a health-care facility, as defined in section 25.5-3-501 (1), whether the consumer was screened for financial assistance; and
(i) For medical debt from a health-care facility, as defined in section 25.5-3-501 (1), whether the consumer was found eligible for financial assistance and, if so, the amount due after all financial assistance is applied to the itemized statement.
Source: L. 2017: Entire article added with relocations, (HB 17-1238), ch. 260, p. 1088, � 1, effective August 9. L. 2023: (1)(c) amended and (5) added, (SB 23-093), ch. 152, p. 643, � 3, effective May 4.
Editor's note: This section is similar to former � 12-14-109 as it existed prior to 2017.
5-16-109.5. Medical debt - requirements related to payment plans - collection prohibited during health insurance appeals - definition. (1) (a) A debt collector or collection agency collecting on a medical debt that agrees to a payment plan with a consumer for the medical debt that is payable in four or more installments shall provide a written copy of the payment plan to the consumer within seven days after entering into the payment plan. The payment plan must prominently disclose the rate or rates of interest and the date by which the account will be paid in full if payments set by the schedule in the payment plan are made without interruption or that the plan is a temporary arrangement that will not pay off the debt in full.
(b) Before accelerating or declaring the payment plan no longer operative, if the consumer has not invoked the right to cease communication, the debt collector or collection agency collecting on a medical debt shall:
(I) Make at least two reasonable attempts to contact the consumer; and
(II) Provide notice to the consumer in writing that the payment plan may be accelerated or become inoperative.
(c) For purposes of this section, the notice to the consumer pursuant to subsection (1)(b)(II) of this section must be to the last-known address of the consumer.
(2) (a) A debt collector or collection agency collecting on a medical debt that knows or reasonably should know about an internal review, external review, or other appeal proceeding of a health insurance decision that is pending or was pending within the previous sixty-three days shall not:
(I) Provide information relating to a consumer's unpaid charges for health-care services to a consumer reporting agency;
(II) Communicate with the consumer regarding the unpaid charges for health-care services in an attempt to collect on the charges, unless requested by the consumer;
(III) Initiate a civil action or arbitration proceeding against the consumer to collect or attempt to collect the unpaid charges for health-care services; or
(IV) Sell the medical debt to a debt buyer.
(b) If a medical debt has already been reported to a consumer reporting agency or a legal action or arbitration proceeding has already been initiated, and the debt collector or collection agency collecting on the medical debt that reported the information learns that an internal review, external review, or other appeal proceeding of a health insurance decision is pending or was pending within the previous sixty-three days, that person shall instruct the consumer reporting agency to delete the information about the medical debt.
(c) As used in this section, health-care services means health-care services or medical products or devices.
Source: L. 2023: Entire section added, (SB 23-093), ch. 152, p. 644, � 4, effective May 4.