Colorado

The relevant statute is the Uniform Consumer Credit Code, Colo. Rev. Stat. §§5-1-101 et seq. (“CO-UCCC”).

A. Actions creditor may take: CO-UCCC §5-2-209(1) - If buyer has covenanted to insure the vehicle and has failed to perform, creditor may, in good faith and in a commercially reasonable manner, pay for insurance on behalf of buyer and add the amount paid to the debt.

B. Notices required: CO-UCCC §5-2-209(2) - Creditor must mail to buyer a written notice of nonperformance and allow buyer a reasonable opportunity to perform. After advancing any sums, creditor must state to buyer in writing:

(i) the amount advanced;

(ii) any charges pertaining to this amount;

(iii) any revised payment schedule; and

(iv) a brief description of the insurance paid for by creditor including the type and amount of coverage.

C. Charges permitted: CO-UCCC §5-2-209(2) - By implication, the notice provision may allow additional charges.

D. Finance charge allowed on creditor's payment: CO-UCCC §5-2-209(3) - A finance charge may be made for sums advanced at rate not in excess of rate contracted with borrower.

Click here to view relevant Colorado Code and Regulations.