HB 23-1162

House Bill 23-1162, also known as the "Consumer Legal Funding Transactions" bill, allows Colorado officials to create rules about fees for a type of loan where consumers borrow money using their potential legal settlement or judgment payouts as collateral. This affects people who might need quick cash while waiting for a lawsuit resolution and are considering this kind of financing. The bill was signed into law by the governor on June 1, 2023, and will take effect on August 7, 2023, meaning new rules can be implemented to regulate these transactions starting from that date.

Official Summary

The act authorizes the administrator of the "Uniform Consumer Credit Code" to adopt rules regarding deferral charges for certain consumer credit transactions that are secured by the consumer's potential proceeds from a settlement or judgment obtained in the consumer's associated legal claim. APPROVED by Governor June 1, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

Votes