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Judgment Enforcement – The Step-by-Step Course

(7) "Creditor" means any person who offers or extends credit creating a debt or
to which a debt is owed. . .
Got it? Yes, collection agency licenses are required in Colorado, but only if the
“creditor” has extended credit. That means it’s a consumer judgment. If you don’t take

consumer judgments, no license is necessary.

And look at their definition of “debt.”
8) (a) "Debt" means any obligation or alleged obligation of a consumer to pay

money arising out of a transaction, whether or not the obligation has been reduced to
judgment.

A consumer judgment is typically a
judgment resulting from a credit transaction
for personal, family, or household
purposes.

So, another reason you probably don’t want consumer judgments is that there may be
additional licensing requirements.

To Review Consumer and Nonconsumer Judgments:
Consumer
✓ Buying a toaster on time? Yes, a consumer debt. judgments
✓ Buying or leasing a car? Yes, a consumer debt. only –
where
✓ Buying a truck for business? No, not a consumer credit has
debt. It’s a business debt. been
✓ Lending money to someone to start a band? No, not a extended

consumer debt. It’s a business debt.
✓ Car accident? No, not a consumer debt. There wasn’t a credit
transaction.
✓ Tree falls on house? No, not a consumer debt.
✓ Dog bites man? No, not a consumer debt.
✓ Man bites dog? (Kidding, sorry. But that’s not consumer either)
✓ TV purchase on credit? Yes.
✓ Breach of contract after someone lent money to start a business? No.
✓ Breach of oral contract after someone lent money to someone to go to the

races? No.
✓ Employer didn’t pay the employee? No.
✓ Contractor did a crumby job on a remodel, and owes $30K? No.

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