§ 5-5-103 — Restrictions on deficiency judgments in consumer credit sales

Colorado § 5-5-103

• Jurisdiction: Colorado
• Title 05: Consumer
• Art.: Remedies and Penalties

Text

(1)
This section applies to a consumer credit sale of goods or services. A consumer is
not liable for a deficiency unless the creditor has disposed of the goods in
accordance with the provisions on the disposition of collateral of the Uniform
Commercial Code contained in part 6 of article 9 of title 4, C.R.S.

(2) If the creditor repossesses, with or without the aid of judicial process, or
voluntarily accepts surrender of goods that were the subject of the sale and in
which the creditor has a security interest, the parties obligated are not personally
liable to the creditor for the unpaid balance of the debt arising from the sale of a
commercial unit of goods of which the cash sale price was three thousand dollars or
less, and the creditor's duty to dispose of the collateral is governed by the
provisions on the disposition of collateral of the Uniform Commercial Code
contained in part 6 of article 9 of title 4, C.R.S.

(3) If the creditor repossesses, with or without the aid of judicial process, or
voluntarily accepts surrender of goods that were not the subject of the sale but in
which the creditor has a security interest to secure a debt arising from a sale of
goods or services or a combined sale of goods and services and the cash price of
the sale was three thousand dollars or less, the parties obligated are not personally
liable to the creditor for the unpaid balance of the debt arising from the sale, and
the creditor's duty to dispose of the collateral is governed by the provisions on
disposition of collateral of the Uniform Commercial Code contained in part 6 of
article 9 of title 4, C.R.S.

(4) For the purpose of determining the unpaid balance of consolidated debts
or debts pursuant to revolving credit accounts, the allocation of payments to a debt
shall be determined in the same manner as provided for determining the amount of
debts secured by various security interests under sections 5-3-202 and 5-3-203.

(5) The consumer may be liable in damages to the creditor if the consumer
has misused, abused, or wrongfully damaged the collateral or if, after default and
demand in writing, the consumer has wrongfully failed to make the collateral
available to the creditor. Nothing in this section shall limit or restrict the remedies
of the holders of a security interest for damage to the collateral because of
conversion, destruction, or other wrongful acts.

(6) If the creditor elects to bring an action against the consumer for a debt
arising from a consumer credit sale of goods or services, when under this section
the creditor would not be entitled to a deficiency judgment if the creditor took
possession of the collateral, and obtains judgment:

(a) The creditor may not take possession of the collateral; and

(b) The collateral is not subject to levy or sale on execution or similar
proceedings pursuant to the judgment.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1233, � 1, effective July 1. L. 2001: (1), (2), and (3) amended, p. 1444, � 36, effective July 1. L. 2003: (3) amended, p. 1896, � 13, effective July 1.