DENVER — Colorado Attorney General Phil Weiser said his office is sending a message to medical debt collectors across the state: follow Colorado’s new consumer protection law or face consequences.
Under a settlement with the state, Wakefield & Associates agreed to pay a $30,000 fine, vacate certain default judgments tied to 44 Colorado accounts and potentially refund some consumers.
Denver7 Investigates reviewed the stipulated final agency order at the center of the case, which accuses the company of trying to win court judgments against consumers without first providing documentation required under a 2023 Colorado law aimed at curbing aggressive medical debt collection practices.
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“We passed this law to protect patients, and in this action, we're now enforcing this law for the first time, sending a message to debt collectors: we're serious,” Weiser told Denver7 Investigates. “Consumers have rights. If you violate them, we'll come after you.”
According to the settlement, Wakefield failed to file evidence the attorney general says was required before seeking default judgments in court.
A default judgment can happen when someone sued over debt fails to respond or appear in court.
“For anyone who's subject to debt collection, say for medical debt, having a default judgment entered against you ... it's serious business,” Weiser said. “It is literally going to be a stain on your credit report. It's going to make it harder for you to get credit.”
The settlement states Wakefield sometimes relied on assignment documents regulators considered insufficient to establish the debt under Colorado law.
Wakefield denies wrongdoing in the agreement and maintains its collection activities “were not in violation of Colorado law.”
The company did not respond to Denver7’s request for comment.
The case marks the first major enforcement action under Senate Bill 23-093, legislation designed to give consumers stronger protections in medical debt cases.
Weiser said the law was inspired in part by a close friend recovering from cancer surgery who was wrongly pursued over medical bills.
“She told me that after she was recovering from cancer surgery, she was the subject of threatened medical debt for a procedure that she shouldn't have been paying for,” Weiser said. “Too often, patients are charged for things they didn't know about they shouldn't be charged for.”
Weiser said debt collection complaints consistently rank among the top complaints received by his office.
“Every single year I've been attorney general, one of the top 10 complaints is how debt collectors treat consumers,” he said. “And last year, it was the No. 4 complaint. And in terms of any type of debt, the number one debt that consumers have is medical debt.”
Under the settlement:
- Wakefield must vacate certain unsatisfied default judgments tied to the 44 identified accounts.
- The company cannot seek new judgments in those cases unless consumers receive new notice and compliant affidavits are filed.
- Some consumers could receive refunds tied to post-judgment payments.
- Wakefield must comply with Colorado's medical debt collection requirements going forward.
Weiser told Denver7 Investigates he worries the issue could extend beyond one company.
“I'm really concerned that this is not the only debt collector ignoring the law,” he said.
He urged Coloradans facing medical debt lawsuits to understand they have rights before judgments are entered against them.
“If you see a threatened default judgment against you, please protect yourself because once it's entered, it's going to hang over you,” Weiser said.
Consumers who believe they have been targeted by unfair or predatory debt collection practices can file a complaint with the Colorado Attorney General’s Office at stopfraudcolorado.gov.
