On April 7th, Colorado Governor Jared Polis signed Senate Bill 86 into law as Chapter 74 of the Laws of 2022. This law took effect the day it was signed. The law establishes a $2,500 exemption for garnishments on bank accounts and increases the homestead exemption from $75,000 to $250,000 for the general public and from $105,000 to $350,000 for the elderly and disabled.

RMAI and industry partners fought this bill in a very difficult political environment and while not being able to prevent passage of the bill were able to achieve some concessions during negotiations, including reducing the automatic exemptions on bank accounts from $5,000 to $2,500 and reducing the homestead exemption from $300,000 to $250,000.

RMAI strongly recommends that you share this Member Alert with those individuals responsible for operations and compliance for your business.

This Member Alert is intended for members of the Receivables Management Association International, is for informational purposes only, and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.