COCODE

5-5-110. Notice of right to cure.

Statute text

(1) With respect to a consumer credit transaction, after a consumer has been in default for ten days for failure to make a required payment and has not voluntarily surrendered possession of goods or the mobile home that are collateral, a creditor may give the consumer the notice described in this section. A creditor gives notice to the consumer pursuant to this section when the creditor delivers the notice to the consumer or mails the notice to the consumer at the consumer's residence, as defined in section 5-1-201 (6).

(2) Except as provided in subsection (3) of this section, the notice shall be in writing and conspicuously state: The name, address, and telephone number of the creditor to which payment is to be made, a brief identification of the credit transaction, the right to cure the default, and the amount of payment and date by which payment must be made to cure the default. A notice in substantially the following form complies with this subsection (2):

(Name, address, and telephone number of creditor)
(Account number, if any)
(Brief identification of credit transaction)

(Date) is the LAST DATE FOR PAYMENT.
(Amount) is the AMOUNT NOW DUE.
You are late in making your payment(s). If you pay the AMOUNT NOW DUE (above) by the LAST DAY FOR PAYMENT (above), you may continue with the contract as though you were not late. If you do not pay by this date, we may exercise our rights under the law.
If you are late again in making your payments, we may exercise our rights without sending you another notice like this one. If you have questions, write or telephone the creditor promptly.

(3) If the consumer credit transaction is a consumer insurance premium loan, the notice shall conform to the requirements of subsection (2) of this section, and a notice in substantially the form specified in subsection (2) of this section shall be deemed compliance with this subsection (3) except for the following:

(a) In lieu of a brief identification of the credit transaction, the notice shall identify the transaction as a consumer insurance premium loan and shall identify each policy or contract that may be canceled;

(b) In lieu of the statement in the form of notice specified in subsection (2) of this section that the creditor may exercise its rights under law, a statement shall be included that each policy or contract identified in the notice may be canceled; and

(4) A notice of right to cure delivered or mailed to a cosigner pursuant to this section shall be modified to state that the consumer is late in making his or her payment, include the consumer's name, and that if the amount now due is not paid by the last date for payment, the creditor may exercise its rights against the consumer, cosigner, or both.

History

Source: L. 2000: Entire article R&RE, p. 1237, 1, effective July 1.

Annotations

Editor's note: (1) This section is similar to former 5-5-111, as it existed prior to 2000.

(2) Although this section was effective on July 1, 2000, section 5 of chapter 265, Session Laws of Colorado 2000, provides that the disclosures described in subsection (4) are effective January 1, 2001.

Annotations

ANNOTATION

Annotations

Law reviews. For article, "Mechanic's Liens -- The 'Intent' Provisions Explored", see 11 Colo. Law. 1492 (1982). For article, "Secured Transactions -- Part II: Default, Foreclosure and Bankruptcy", see 12 Colo. Law. 13 (1983). For article, "Setoff and Security Interests In Deposit Accounts", see 17 Colo. Law. 2108 (1988). For article, "Default Judgments Against Consumers: Has the System Failed?", see 67 Den. U. L. Rev. 357 (1990).

Annotator's note. Since 5-5-110 is similar to 5-5-111 as it existed prior to the 2000 repeal and reenactment of articles 1 to 3 and 4 to 6 of this title, relevant cases construing that provision have been included in the annotations to this section.

Buyer may also be entitled to redeem. In addition to the right to cure, as provided by this section and 5-5-112, a buyer may be entitled to redeem, but only if the trial court determines that the equities so warrant. Woods v. Monticello Dev. Co., 656 P.2d 1324 (Colo. App. 1982).

Creditor choosing not to effect actual delivery must use method of mail likely to insure that the notice is actually delivered to the debtors' residence. Aetna Fin. Co. v. Summers, 44 Colo. App. 491, 618 P.2d 726 (1980), aff'd, 642 P.2d 926 (Colo. 1982).

Mailing by certified mail return receipt requested does not per se constitute notice to the debtor under subsection (1). Aetna Fin. Co. v. Summers, 44 Colo. App. 491, 618 P.2d 726 (1980), aff'd, 642 P.2d 926 (Colo. 1982).

Statutory notice method required when debtor had knowledge alternate method failed. Once the creditor has actual knowledge that the debtor has not received a notice mailed by certified mail, return receipt requested, it was incumbent upon creditor to satisfy the statutory notice requirement by personal service or by sending the notice by regular mail to debtor's home. Aetna Fin. Co. v. Summers, 642 P.2d 926 (Colo. 1982).