Colorado Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Colorado's lemon law covers new private passenger vehicles, including pickups and vans, that carry no more than ten people and are sold to consumers in Colorado for personal, family or household use; it does not cover motor homes, vehicles with three or fewer wheels, or vehicles modified for commercial use. Defects reported within two years or 24,000 miles of delivery, whichever is earlier, must be repaired. A reasonable number of repair attempts is presumed if, in that period, the same defect was repaired three or more times, the vehicle was out of service 24 or more business days, or a safety-related defect (likely to cause death or serious injury, or a fire or explosion risk) was repaired two or more times, and the problem remains. The consumer must first notify the manufacturer by certified mail and give it ten business days to fix the defect. If it cannot be fixed, the manufacturer must, at the manufacturer's option, replace the vehicle or refund the full purchase price, taxes and fees, minus a reasonable allowance for use. Suits must be filed within 30 months of original delivery.

The lemon law covers new vehicles. The Attorney General notes that private-party car sales are generally governed by ordinary contract rules, including vehicles bought "as is," and that there is no three-day right to cancel a car purchase. If a dealer agrees to let a buyer back out, the dealer can keep only $500 of the deposit unless it can show a greater loss.

In a home solicitation sale (a consumer credit sale personally solicited and agreed to at a residence), the buyer may cancel until midnight of the third business day after signing. Cancellation is by written notice in any form to the address in the agreement. A buyer who requests immediate emergency work in a separate, signed, handwritten statement may lose the right if the seller has substantially begun performance. Separately, a roofing contract must let the property owner rescind and get a full refund of any deposit within 72 hours.

The Colorado Consumer Protection Act (C.R.S. § 6-1-101 et seq.) lists deceptive trade practices. A consumer injured by a listed deceptive trade practice can sue and recover the greater of actual damages (with interest), $500, or three times actual damages if bad-faith conduct is shown by clear and convincing evidence, plus costs and reasonable attorney fees. Class actions are limited to actual damages, injunctive relief, and fees and costs.

Under the Motor Vehicle Repair Act, a repair shop must get the customer's written consent before doing repairs and must give a written estimate of the total cost (including the expected completion date) before work begins, unless the customer waives it in writing; for cars towed in or dropped off after hours the waiver is limited to $100. Without further consent, a shop may not collect more than the estimate plus 10 percent or $25, whichever is less. If the customer asks when authorizing repairs, replaced parts must be returned (except body shop parts, airbag components and warranty-exchange parts). Storage charges are limited.

During a disaster period (from a Governor's disaster emergency or presidential national emergency declaration until 180 days after the final declaration expires) and within the designated area, charging a price so excessive as to amount to price gouging for building materials, food, emergency supplies, fuel, medical supplies or other necessities, or for repair, reconstruction, transportation, storage or cleanup services, is an unfair and unconscionable practice. A price is not unreasonably excessive if the seller proves it is directly due to higher supplier or other direct costs caused by the disaster. Only the Attorney General or a district attorney can enforce this section.

It is unlawful to sell a gift card that carries a service, dormancy, inactivity, maintenance or any other fee. If $5 or less remains on a gift card, the issuer must redeem it for cash on request. The law does not cover paper-only gift certificates, cards usable at multiple unaffiliated sellers, government-issued cards, prepaid phone cards, or promotional and loyalty cards given for free.

Credit services organizations (credit repair companies) may not charge or receive any money before fully performing the agreed services, may not advise false statements to credit bureaus or creditors, and must give a written disclosure statement and written contract. Debt-management service providers (including debt settlement) must be registered with the administrator of the Uniform Consumer Credit Code before serving Colorado residents.

Colorado has no statewide general contractor license; the Attorney General advises checking with the Department of Regulatory Agencies and your local government to see whether a contractor is properly licensed. Roofing contractors must give the owner a signed written contract before starting work that states the scope, approximate dates and cost, contact and insurance information, a 72-hour rescission right with full refund of any deposit, and a statement that the contractor will hold payments in trust until materials are delivered or most of the work is done.

A business or other covered entity that maintains computerized personal information about Colorado residents must promptly investigate a possible breach and notify affected residents unless it determines misuse has not occurred and is not reasonably likely. Notice must be given in the most expedient time possible and no later than 30 days after determining that a breach occurred. If 500 or more Colorado residents are affected, the Attorney General must also be notified within 30 days. A waiver of these rights is void.

File a complaint with the Attorney General's office online by choosing the problem area (such as consumer purchases, credit and debt, data privacy, or scams). Some disputes are referred to the department's Consumer Mediation Program for informal negotiation, and consumers selected for it are notified. The office cannot give legal advice or represent you or prosecute your individual case. Car-purchase issues may go to the Department of Revenue's Auto Industry Enforcement Division.

1) Written notice: the presumption that the manufacturer had a reasonable number of repair attempts does not apply unless the manufacturer has received prior written notice by certified mail from or on behalf of the consumer, stating that one or more repair attempts for the same defect have been made and the defect remains. Dealers must include a notice form, with the manufacturer's name and business address, in each owner's manual, and the form must say that written notice by certified mail is required to get lemon law remedies. 2) Final repair attempt: after receiving the notice, the manufacturer has ten business days to fix the defect; that attempt counts as one repair attempt. 3) Arbitration: Colorado has no state-run lemon law arbitration program. If the manufacturer has or takes part in an informal dispute program that substantially complies with federal rules (16 C.F.R. Part 703), the refund/replacement remedy does not apply to a consumer who has not first used that program. 4) Deadline: a lawsuit must be started within thirty months after the vehicle was originally delivered to the consumer; the time is paused while the consumer is in the manufacturer's arbitration program or while the vehicle is unavailable because it is being repaired. The court must award reasonable attorney fees to the prevailing side.