Colorado Native Americans are set to receive restitution following a settlement between the Colorado Attorney General’s Office and TrueAccord, a Kansas-based debt collection firm. The company’s actions targeted Native American consumers in Colorado, violating state laws with exorbitant interest rates exceeding 500% APR.
Unlawful Debt Collection Practices
TrueAccord’s unlawful debt collection practices came to light after an investigation by the Colorado Attorney General’s Office. Between 2017 and 2022, the firm pursued debts from 29,000 consumers who had defaulted on loans issued by tribal lending entities. Despite claims of tribal jurisdiction, these loans exceeded Colorado’s legal interest rate limit of 12% per year.
In violation of the Colorado Fair Debt Collections Act, TrueAccord attempted to collect outstanding amounts at the same terms as the tribal entities, exploiting vulnerable Colorado Native Americans. Attorney General Phil Weiser emphasized the state’s commitment to protecting consumers from illegal debt practices, irrespective of loan origin.
Colorado Native Americans, disproportionately affected by TrueAccord’s actions, were subjected to interest rates as high as 900% APR. The settlement mandates a $500,000 refund to affected consumers, with TrueAccord prohibited from collecting debts surpassing state-mandated APR limits.
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Accountability and Restitution
As part of the settlement, TrueAccord must furnish the state with a comprehensive list of affected Colorado Native American consumers within 30 days. The refunded amount will also support consumer and creditor education initiatives and future enforcement efforts.
Despite TrueAccord’s location in Lenexa, Kansas, its illegal practices targeted Colorado Native Americans, a population exceeding 74,000 according to the 2020 Census. Many reside in urban areas along the Front Range, facing predatory lending practices.
The Ute Mountain and Southern Ute tribes, the only Native American reservations in Colorado, represent communities impacted by TrueAccord’s exploitative tactics. The settlement underscores the importance of upholding consumer rights and combating financial exploitation, particularly among marginalized groups.
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