Section 40-12-80 Collection Agencies
Each collection agency shall pay the following license tax: In towns and cities of 20,000 or more inhabitants, $100; in towns and cities of less than 20,000 inhabitants, $25. Each person who shall employ agents to solicit claims for collection from persons, firms, or corporations in the state shall be deemed a collection agency within the meaning of this section. This section shall not apply to any person who is excluded from the definition of the term “debt collector” under the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692a(6).
(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §492; Act 2001-454, p. 595, §1.)
Alabama Statutes Online:
http://www.legislature.state.al.us/codeofalabama/1975/coatoc.htm
3 AAC 01.210. Communications in debt collection
Article 3. Prohibited Practices and Sanctions
Section 210. Communications in debt collection.
(a) A creditor may not communicate with a debtor regarding the collection of a debt without the prior written consent of the debtor or pursuant to an order by a court of competent jurisdiction
(1) after written notification from an attorney representing the debtor that all further communications regarding the loan must be addressed to the attorney, unless the attorney fails to respond within a reasonable time to the creditor’s inquiries regarding the debt or the attorney consents to direct communication with the debtor;
(2) at the debtor’s place of employment unless the debtor’s employer permits employees to receive those communications during working hours.
(b) Any creditor communicating with any person for the purpose of acquiring information regarding the whereabouts of the debtor, e.g., the debtor’s residence, telephone number, or place of employment, may not in any way use a form of communication or otherwise indicate that the debtor owes any debt.
(c) A creditor who has assigned an alleged debt to a credit reporting agency shall, upon receipt of a written notice from the debtor that any part of the alleged debt is disputed, forward a copy of the written notice to the credit reporting agency.
(d) A creditor may not
(1) take or threaten to take any nonjudicial action to effect dispossession or disablement of property if
(A) there is no present right to possession of the property through an enforceable security interest;
(B) in the case of a threat, there is no present intention to effect dispossession or disablement of the property;
(C) the property is exempted by law from dispossession or disablement;
(2) threaten to take any action which, if taken, would violate any law;
(3) obtain a signed confession of judgment, when permitted to do so by Alaska law, by deception or coercion or on a document which is not clearly labeled “Confession of Judgment.”
3 AAC 01.220. False or misleading representations
A creditor may not use any false, deceptive or misleading representation or means in connection with the collection of any debt, including but not limited to the following:
(1) any false representation
(A) that the lender is vouched for, bonded by, or affiliated with the United States or any state;
(B) of the character, amount or legal status of any debt;
(C) of any services rendered or compensation due the creditor for the collection of any debt;
(D) that documents are not legal process forms or do not require action by the debtor;
(2) communicating or threatening to communicate to any person credit information which is known to be false or, if a debt is disputed, failing to communicate that fact when giving credit information.
Alaska Legislative Website: http://www.legis.state.ak.us
Title 32 Professions and Occupations, Chapter 9, Articles 1-3.
32-1001. Definitions and exemptions
A. In this chapter, unless the context otherwise requires:
1. “Claim” means an obligation for the payment of money or its equivalent and a sum or sums owed, due or asserted to be owed or due to another, for which a person is employed to demand payment and collect or enforce such payment, and includes:
(a) Obligations for the payment of money to another, in the form of conditional sales agreements, notwithstanding the personal property sold thereunder, for which payment is claimed or may be or is repossessed in lieu of payment.
(b) An obligation for the payment of money or its equivalent and a sum or sums owed, due or asserted to be owed or due which is sold or assigned to a purchaser or assignee for which either:
(i) The final payment has not been tendered to the seller or assignor.
(ii) Title has not yet passed.
(iii) The purchaser or assignee has a right of recourse against the seller or assignor.
2. “Collection agency” means: (a) All persons engaged directly or indirectly in soliciting claims for collection or in collection of claims owed, due or asserted to be owed or due. (b) Any person who, in the process of collecting debts occurring in the operation of his own business, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts.
3. “Department” means the state banking department.
4. “Financial institution” means a person who does business under any other law of this state or law of another state or the United States relating to banks, trust companies, savings and loan associations, credit unions and savings banks.
5. “Person” means an individual, firm, partnership, association or corporation.
6. “Superintendent” means the superintendent of banks.
32-1004. Exemptions
A. The following persons are exempt from the provisions of this chapter when engaged in the regular course of their respective businesses but shall comply with the requirements of section 32-1051, paragraphs 2 through 7 and section 32-1055, subsection C and subsection D, paragraphs 1, 2, 3 and 5:
1. Attorneys-at-law.
2. A person regularly employed on a regular wage or salary in the capacity of credit person or a similar capacity, except as an independent contractor.
3. Banks, including trust departments of a bank, fiduciaries and financing and lending institutions.
4. Common carriers.
5. Title insurers, title insurance agents and abstract companies while doing an escrow business.
6. Licensed real estate brokers.
7. Employees of licensees under this chapter.
8. Substation payment offices employed by or serving as independent contractors or public utilities.
9. A person licensed pursuant to title 6, chapter 7.
10. A person licensed pursuant to title 6, chapter 9.
11. A person licensed pursuant to title 6, chapter 14, article 1.
12. A participant in a finance transaction in which a lender receives the right to collect commercial claims due the borrower by assignment, by purchase or by the taking of a security interest in those commercial claims.
13. An accounting, bookkeeping or billing service provider that complies with all of the following:
(a) Does not accept accounts that are contractually past due at the time of receipt.
(b) Does not initiate any contact with individual debtors except for the initial written notice of the amount owing and one written follow-up notice.
(c) Does not give or send to any debtor a written communication that requests or demands payment.
(d) Does not receive or have access to monies paid by debtors or their insurers.
(e) All communications with the debtors are done in the name of the creditor.
14. A person collecting claims owed, due or asserted to be owed or due to a financial institution the deposits of which are insured by an agency of the federal government, or any affiliate of the financial institution, if the person is related by common ownership or affiliated by corporate control with the financial institution and collects the claims only for the financial institution or any affiliate of the financial institution.
15. A person who is licensed pursuant to title 20, chapter 2, article 3, 3.1, 3.2, 3.3 or 3.4 and who is authorized to collect premiums under an insurance policy financed by a premium finance agreement as defined in section 6-1401.
B. For the purposes of subsection A, paragraph 12 of this section:
1. A transaction shall not be deemed a finance transaction if the primary purpose is to facilitate the collection of claims.
2. “Commercial claim” does not include an account arising from the purchase of a service or product intended for personal, family or household use.
C. For the purposes of subsection A, paragraph 13, subdivision (b) of this section, the initial written notice and follow-up notice may contain only the following information:
1. The name, address, telephone and telefacsimile numbers of the creditor.
2. The amount due and an itemization of that amount.
3. The date payment is due.
4. The address or place where payment is to be made.
5. If the payment is past due, that payment is past due.
D. For a person who is exempt under subsection A, paragraph 14 of this section, the superintendent shall investigate complaints of residents of this state relating to any violations of section 32-1051, paragraphs 2 through 7 or section 32-1055, subsection C or subsection D, paragraph 1, 2, 3 or 5 and may examine the books, accounts, claims and files of a person that relate to the complaint. A person who is exempt and who violates the provisions of section 32-1051, paragraphs 2 through 7 or section 32-1055, subsection C or subsection D, paragraph 1, 2, 3 or 5 is subject to the provisions of sections 6-132, 6-136 and 6-137.
32-1051. Duties of licensees
An individual, firm, partnership, association or corporation to whom a license is to be issued under this chapter shall:
1. Meet the financial responsibility and bonding requirements of this chapter.
2. Not have been a former licensee under the provisions of this chapter whose license was suspended or revoked and not subsequently reinstated.
3. Deal openly, fairly and honestly in the conduct of the collection agency business.
4. Except for attorneys licensed to practice law, not attempt to collect any collection fee, attorney’s fee, court cost or expenses unless the fees, charges or expenses are justly due from and legally chargeable against the debtor, or have been judicially determined, nor shall any licensee engage in any unfair or misleading practices or resort to any oppressive, vindictive or illegal means or methods of collection.
5. Except for attorneys licensed to practice law, not give or send to any debtor, or cause to be given or sent to any debtor, any notice, letter, message or form which:
(a) Simulates any legal process.
(b) Is ambiguous as to or misrepresents the character, extent or amount of the obligation of the debtor.
(c) Represents or infers that the existing obligation of the debtor may be increased by the addition of attorneys’ fees, investigation fees, service fees, or any other fees or charges when in fact these fees or charges may not legally be added to the existing obligation of the debtor.
(d) Threatens to sell the obligation of the debtor to any person, firm or group.
(e) Uses or sets forth the name of or purports to be from any attorney at law or legal firm.
6. Except for attorneys licensed to practice law, not use any letterhead, or literature bearing any heading, slogan or statement representing or inferring that the licensee practices law, renders legal services or advice, or maintains a legal department.
7. Not by the use of any letterhead, advertisement, agreement, form, circular or other printed matter, or otherwise, convey the impression that the individual, firm, partnership, association or corporation is vouched for or is an instrumentality of the state, a political subdivision of the state, or the department.
32-1055. Unlawful acts
A. It is unlawful for a person to conduct a collection agency in this state without having first applied for and obtained a license under this chapter.
B. A collection agency licensed under this chapter shall not directly or indirectly aid, abet or receive compensation from an unlicensed person. Nothing in this chapter shall prevent a licensed agency from accepting, as forwardee, claims for collection from a collection agency or attorney whose place of business is outside this state.
C. A licensee shall not advertise a claim for sale or threaten to so advertise a claim as a means of endeavoring to enforce payment, nor shall a licensee agree to do so for the purpose of soliciting claims. This subsection shall not be deemed to affect a licensee acting as assignee for the benefit of a creditor or acting under a court order.
D. It is unlawful for a person conducting a collection agency in this state to:
1. Fail to render an account of and pay to the client for whom collection has been made the proceeds collected, less collection charges as agreed to by the person and the client, within thirty days from the last day of the month in which the proceeds were collected. If the amount due the client is less than five dollars, payment may be deferred for an additional thirty days.
2. Fail to deposit with a local depository all monies collected by the person and due to the person’s clients, and to fail to keep these monies deposited until these monies or equivalent amounts are remitted to the person’s clients. Notwithstanding this paragraph, if a person conducting a collection agency does not maintain an office in this state, the person may deposit and keep these monies in a depository in a state where the person maintains the person’s principal office.
3. Fail to keep a record of monies collected and the remittance of these monies.
4. Fail to notify the department within ten days of any change of name under which the person does business as a collection agency or address at which the person conducts business.
5. Aid or abet, directly or indirectly, any person, persons or organizations in evading or violating any of the provisions of this chapter.
Website: http://www.azleg.state.az.us
17-24-101. Definition.
As used in this chapter, unless the context otherwise requires, “collection agency” means any person who works with or employs one (1) or more other persons, or any partnership, corporation, or association which engages in the collection of delinquent accounts, bills, or other forms of indebtedness, or any person, partnership, corporation, or association using a fictitious name or any name other than their own in the collection of their own accounts receivable, or any person, partnership, corporation, or association which solicits claims for collection.
17-24-102. Exemptions.
(a) The provisions of this chapter shall not be applicable to: (1) Regular employees of a single creditor; (2) Banks; (3) Trust companies; (4) Savings and loan associations; (5) Abstract companies doing an escrow business; (6) Licensed real estate brokers and agents when the claims or accounts being handled by the broker or agent are related to or in connection with the broker’s or agent’s regular real estate business; (7) Express and telegraph companies subject to public regulation and supervision; (8) Attorneys at law handling claims and collections in their own names and not operating a collection agency under the management of a layman or under names other than their own; (9) Persons, firms, corporations, or associations handling claims, accounts, or collections under an order of any court. However, child support collection agencies not operating pursuant to Title IV-D of the Social Security Act are not exempt from this chapter and shall be subject to licensure; and (10) Any person, firm, corporation, or association which, for a valuable consideration, purchases accounts, claims, or demands of another which were not in default or delinquent at the time of acquisition and then, in such purchaser’s own name, proceeds to assert or collect the accounts, claims, or demands.
(b) Nothing in §§ 17-24-301, 17-24-309, 17-24-401, or this section with respect to licensure by the State Board of Collection Agencies, or limitations of fees for collection services, shall include or be applicable to attorneys at law licensed to practice in the State of Arkansas who are engaged in rendering legal services for clients in the collection of accounts, debts, or claims, nor shall §§ 17-24-301, 17-24-309, 17-24-401, or this section amend or repeal in any way the exemptions set out in subsection (a) of this section.
17-24-103. Penalties.
(a) Any person, partnership, corporation, or association which engages in the business activities of a collection agency without a valid license issued pursuant to this chapter and any person, partnership, corporation, or association who shall violate any provision of this chapter shall be deemed guilty of a misdemeanor and upon conviction shall be fined in any sum of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500). Each day of the violation shall constitute a separate offense.
(b)(1) The State Board of Collection Agencies is authorized to impose monetary fines as civil penalties to be paid for failure to comply with the provisions of this chapter or the regulations promulgated pursuant thereto.
(2) Prior to the imposition of monetary fines, the board shall provide notice and opportunity to be heard in accordance with hearing procedures in effect for the revocation, suspension, or refusal of licensure.
17-24-104. Sanctions.
(a) Any collection agency required to be licensed under this chapter, which fails to remit to its client funds collected for the client within the calendar month following the month of collection, shall not be entitled to a collection fee and shall remit the total funds collected to the client.
(b) In instances where a collection agency has failed to remit funds collected to its client within the calendar month following the month of collection, if the collection agency does not remit the total funds collected for the client to the client within sixty-one (61) days of the date of collection, the collection agency’s license shall be subject to suspension or revocation by the State Board of Collection Agencies.
17-24-105. Remedies.
When any person, partnership, corporation, or association engages in the business activities of a collection agency without a valid license issued pursuant to this chapter or has had the license revoked, suspended, or refused, in accordance with the provisions of this subchapter, the State Board of Collection Agenices shall have the right to petition the circuit court in the jurisdiction in which the collection activity has occurred and, upon affidavit, secure a writ of injunction, without bond, restraining and prohibiting the person, partnership, corporation, or association from operating the collection agency.
17-24-201. Creation – Members.
(a)(1) There is created a State Board of Collection Agencies composed of five (5) members to be appointed by the Governor. (2) The members shall serve three-year terms without compensation except they may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.
(b)(1)(A)(i) One (1) member shall be selected by the Governor from a list of three (3) names furnished him or her by the Associated Credit Bureaus of Arkansas and another shall be selected from a list of three (3) names submitted by the Arkansas members of the American Collectors Association.
(ii) The persons whose names are submitted to the Governor by the Associated Credit Bureaus of Arkansas and the Arkansas members of the American Collectors Association shall all be actively engaged as the owners or managers of a collection agency or someone employed by collection agencies in an executive capacity.
(B) All nominees on the list submitted to the Governor shall be individuals who have been actively engaged in connection with the operation of a collection agency for five (5) years next preceding their appointment.
(2) One (1) member, who shall not be a member of either such association, shall be selected from the public at large.
(3)(A) One (1) member shall represent the elderly and shall be sixty (60) years of age or older.
(B) This member shall not be actively engaged in or retired from the operation of a collection agency.
(C) He or she shall be selected from the state at large subject to confirmation by the Senate and shall be a full voting member but shall not participate in the grading of examinations.
(4)(A) One (1) member shall be selected to represent the check-cashing industry.
(B) He or she shall be an Arkansas resident who is actively engaged as the owner or manager of a check-cashing operation licensed to do business in the State of Arkansas.
17-24-301. License required.
It shall be unlawful for any person, partnership, association, or corporation to conduct within this state a collection agency or engage within this state in the business of collecting claims for others, or of soliciting the right to collect or receive payment for any other person of any claim, or advertise, either in print, by letter, in person, or otherwise, the right to collect or receive payment for another of any claim, or seek to make collection or obtain payment of any claim on behalf of another person without having first applied for and obtained a license from the State Board of Collection Agencies.
17-24-302. Qualifications – Restriction.
(a) The State Board of Collection Agencies shall have the authority to issue a license to an applicant for a license to do business as a collection agency, provided that the applicant meets the following qualifications:
(1) The applicant is at least twenty-one (21) years of age;
(2) If a partnership, the names of the partners, their ages, sex, and their business address are provided, and the members of the partnership are at least twenty-one (21) years of age; and
(3) The proposed managers of a corporation or the owners of not less than fifty percent (50%) of the stock of the corporation are at least twenty-one (21) years of age.
(b) No sheriff, deputy sheriff, constable, deputy constable, state police officer, or other law enforcement officer shall be licensed in any manner to engage in the business of operating a collection agency or acting as a collector for a collection agency.
17-24-307. Grounds for revocation, suspension, or refusal.
The State Board of Collection Agencies shall have the authority to revoke, suspend, or refuse to issue a license for violation of this chapter, or upon receipt of evidence as follows:
(1) False or misrepresented statements on application;
(2) Sale or transfer of ownership of agency;
(3) Conviction of any crime involving moral turpitude;
(4) Aiding or abetting any unlicensed person to engage in business as a collection agency;
(5) Publishing or posting, or causing to be published or posted, any list of debtors, commonly known as “deadbeat” lists;
(6) Collecting or attempting to collect by the use of any methods contrary to the postal laws and regulations of the United States;
(7) Having in his or her possession or making use of any badge, using a uniform of any law enforcement agency or any simulation thereof, or making any statements which might be construed as indicating an official connection with any federal, state, county, or city law enforcement agency, or any other governmental agency, while engaged in collection agency business;
(8) Distributing any printed matter which is made to be similar or to resemble government forms or documents, or legal forms used in civil or criminal proceedings;
(9) Advertising for sale or threatening to advertise for sale any claim as a means of endeavoring to enforce payment thereof, or agreeing to do so for the purpose of soliciting claims, except where the licensee has acquired claims as an assignee for the benefit of creditors or where the licensee is acting under the order of a court of competent jurisdiction;
(10) Engaging in any unethical practices or resorting to any illegal means or methods of collection;
(11) Using profanity, obscenity, or vulgarity while engaged in the collection of claims;
(12) No licensee shall address a letter to or telephone any debtor at his or her place of employment unless a good-faith attempt has been made to contact the debtor at his or her usual place of abode by letter and the mail has not been returned and no answer has been received; or
(13) Using violence or threats of physical violence while engaged in the collection of claims.
17-24-309. Collection charges – Limits.
(a) No person, partnership, association, or corporation mentioned in § 17-24-301 shall charge as a collection charge or fee an amount in excess of fifty percent (50%) of the total amount actually collected on all accounts held by the person, partnership, association, or corporation for collection for any one (1) client, nor more than fifty percent (50%) of the total amount actually collected on any one (1) account, nor shall a minimum charge in excess of one dollar ($1.00) be made on any partially or totally collected account.
(b) All contracts providing for a greater collection charge or fee or a greater minimum charge than provided in this section entered into between any creditor in this state and any person, partnership, association, or corporation covered by this chapter shall be void. The creditor shall have, in addition to all other remedies now or hereafter provided by law, a cause of action to recover all amounts collected by the person, partnership, association, or corporation on the creditor’s account or accounts.
17-24-310. Annual notice to client of accounting requirement.
(a) Each collection agency required to be licensed under this chapter shall, annually, within the month of April, give written notice to each client for whom it is collecting or attempting to collect that collection agencies licensed by the State of Arkansas are required by law to remit collected funds to the clients within the calendar month following the month of collection.
(b) No such notice is required to a forwarder who is also a licensee of the State of Arkansas.
17-24-401. “Long arm” jurisdiction.
Any nonresident person, partnership, association, or any foreign corporation not authorized to do business in this state whose sole business contact with this state is the soliciting of accounts in this state by mail, telephone, telegraph, or by other like means originating outside this state, or the taking or accepting for collection of any account or accounts in this state by such means, shall by such acts.
(1) Subject himself or herself to the jurisdiction of the proper courts of this state under the procedure provided in §§ 17-24-403 and 17-24-404 on any cause of action arising out of or connected with the collection of any such account or accounts;
(2) Be deemed to have consented to comply with the maximum collection charges or fees provided in § 17-24-309; and
(3) Be deemed to have consented to and designated the Secretary of State to be the true and lawful attorney of the person, partnership, association, or corporation upon whom may be served all legal process in any action, suit, or proceeding in any court by any resident of this state arising out of or connected with the collection of any such account or accounts. Such acts shall be signification of its agreement that any legal process in any court action or suit so served shall be of the same legal force and validity as personal service of process in this state upon the person, partnership, association, or corporation. Service of process shall be made upon the Secretary of State pursuant to § 17-24-403.
17-24-403. Service of process.
(b) The Secretary of State shall immediately mail one (1) copy of the court process to the defendant in the court proceeding by first class mail at the defendant’s last known principal place of business, and shall keep a record of all process which shall show the day and hour of receipt. The Secretary of State shall file an affidavit showing compliance with this section in the court proceedings on or before the date the defendant is required to appear or respond, unless an extension of time is allowed by the court.
(c) No plaintiff or complainant shall be entitled to a judgment or determination by default in any court proceeding in which process is served under this section until the expiration of forty-five (45) days from the date of filing of the affidavit of compliance.
(d) Nothing contained in this section shall limit or abridge the right to serve any process, notice, order, pleading, or demand upon any person, partnership, association, or corporation in any other manner now or hereafter permitted by law.
Website: http://arkieg.state.ar.us
California Civil Code
1788. This title may be cited as the Rosenthal Fair Debt Collection Practices Act.
1788.1 (a) The Legislature makes the following findings:
(1) The banking and credit system and grantors of credit to consumers are dependent upon the collection of just and owing debts. Unfair or deceptive collection practices undermine the public confidence which is essential to the continued functioning of the banking and credit system and sound extensions of credit to consumers.
(2) There is need to ensure that debt collectors and debtors exercise their responsibilities to one another with fairness, honesty and due regard for the rights of the other.
(b) It is the purpose of this title to prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and to require debtors to act fairly in entering into and honoring such debts, as specified in this title.
1788.2 (a) Definitions and rules of construction set forth in this section are applicable for the purpose of this title.
(b) The term “debt collection” means any act or practice in connection with the collection of consumer debts.
(c) The term “debt collector” means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters, and other collection media used or intended to be used for debt collection, but does not include an attorney or counselor at law.
(d) The term “debt” means money, property or their equivalent which is due or owing or alleged to be due or owing from a natural person to another person.
(e) The term “consumer credit transaction” means a transaction between a natural person and another person in which property, services or money is acquired on credit by that natural person from such other person primarily for personal, family, or household purposes.
(f) The terms “consumer debt” and “consumer credit” mean money, property or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction.
(g) The term “person” means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association or other similar entity.
(h) The term “debtor” means a natural person from whom a debt collector seeks to collect a consumer debt which is due and owing or alleged to be due and owing from such person.
(i) The term “creditor” means a person who extends consumer credit to a debtor.
(j) The term “consumer credit report” means any written, oral or other communication of any information by a consumer reporting agency bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for (1) credit or insurance to be used primarily for person, family, or household purposes, or (2) employment purposes, or (3) other purposes authorized under any applicable federal or state law or regulation. The term does not include (a) any report containing information solely as to transactions or experiences between the consumer and the person making the report; (b) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or (c) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his or her decision with respect to that request, if the third party advises the consumer of the name and address of the person to whom the request was made and such person makes the disclosures to the consumer required under any applicable federal or state law or regulation.
(k) The term “consumer reporting agency” means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer credit reports to third parties, and which uses any means or facility for the purpose of preparing or furnishing consumer credit reports.
1788.3. Nothing contained in this title shall be construed to prohibit a credit union chartered under Division 5 (commencing with Section 14000) of the Financial Code or under the Federal Credit Union Act (Chapter 14 (commencing with Section 1751) of Title 12 of the United States Code) from providing information to an employer when the employer is ordinarily and necessarily entitled to receive such information because he is an employee, officer, committee member, or agent of such credit union.
1812.700. (a) In addition to the requirements imposed by Article 2 (commencing with Section 1788.10) of Title 1.6C, third-party debt collectors subject to the federal Fair Debt Collection Practices Act (15 U.S.C. Sec. 1692 et seq.) shall provide a notice to debtors that shall include the following description of debtor rights:
“The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov.”
(b) The notice shall be included with the first written notice initially addressed to a California address of a debtor in connection with collecting the debt by the third-party debt collector.
(c) If a language other than English is principally used by the third-party debt collector in the initial oral contact with the debtor, a notice shall be provided to the debtor in that language within five working days.
1812.701. a) The notice required in this title may be changed only as necessary to reflect changes under the federal Fair Debt Collection Practices Act (15 U.S.C. Sec. 1692 et seq.) that would otherwise make the disclosure inaccurate.
(b) The type-size used in the disclosure shall be in at least the same type-size as that used to inform the debtor of his or her specific debt, but is not required to be larger than 12-point type.
1812.702. Any violation of this act shall be considered a violation of the Rosenthal Fair Debt Collection Practices Act (Title 1.6C (commencing with Section 1788)).
Website: http://www.leginfo.ca.gov/
ARTICLE 14. COLORADO FAIR DEBT COLLECTION PRACTICES ACT
12-14-101. Short title. This article shall be known and may be cited as the “Colorado Fair Debt Collection Practices Act”.
12-14-102. Scope of Article
(1) This article shall apply to any collection agency, solicitor, or debt collector that has a place of business located:
(a) Within this state;
(b) Outside this state and collects or attempts to collect from consumers who reside within this state for a creditor with a place of business located within this state;
(c) Outside this state and regularly collects or attempts to collect from consumers who reside within this state for a creditor with a place of business located outside this state; or
(d) Outside this state and solicits or attempts to solicit debts for collection from a creditor with a place of business located within this state.
12-14-103. Definitions.
As used in this article, unless the context otherwise requires:
(1) “Administrator” means the administrator of the “Uniform Consumer Credit Code”, articles 1 to 9 of title 5, C.R.S., whose office is created in the department of law in section 5-6-103, C.R.S.
(1.5) “Board” means the collection agency board created in section 12-14-116.
(2) (a) “Collection agency” means any:
(I) Person who engages in a business the principal purpose of which is the collection of debts; or
(II) Person who:
(A) Regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another;
(B) Takes assignment of debts for collection purposes;
(C) Directly or indirectly solicits for collection debts owed or due or asserted to be owed or due another;
(D) Collects debt for the department of personnel, but only for the purposes specified in paragraph (d) of this subsection (2);
(b)”Collection agency” does not include:
(I) Any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;
(II) Any person while acting as a collection agency for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a collection agency does so only for creditors to whom it is so related or affiliated and if the principal business of such person is not the collection of debts;
(III) Any officer or employee of the United States or any state to the extent that collecting or attempting to collect any debt is in the performance of such officer’s or employee’s official duties, except as otherwise provided in subsection (7) of this section;
(IV) Any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt;
(V) Any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors;
(VI) Repealed.
(VII) Any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent that:
(A) Such activity is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement;
(B) Such activity concerns a debt which was extended by such person;
(C) Such activity concerns a debt which was not in default at the time it was obtained by such person; or
(D) Such activity concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor;
(VIII) Any person whose principal business is the making of loans or the servicing of debt not in default and who acts as a loan correspondent, or seller and servicer for the owner, or holder of a debt which is secured by a deed of trust on real property whether or not such debt is also secured by an interest in personal property.
(c) Notwithstanding the provisions of subparagraph (VII) of paragraph (b) of this subsection (2), “collection agency” includes any person who, in the process of collecting his or her own debts, uses another name which would indicate that a third person is collecting or attempting to collect such debts.
(d) For the purposes of section 12-14-108 (1) (f), “collection agency” includes any person engaged in any business the principal purpose of which is the enforcement of security interests. For purposes of sections 12-14-104, 12-14-105, 12-14-106, 12-14-107, 12-14-108, and 12-14-109 only, “collection agency” includes a debt collector for the department of personnel.
(e) Notwithstanding paragraph (b) of this subsection (2), “collection agency” includes any person who engages in any of the following activities; except that such person shall be exempt from provisions of this article that concern licensing and licensees:
(I) (Deleted by amendment, L. 2000, p. 935, § 2, effective July 1, 2000.)
(II) Is an attorney-at-law and regularly engages in the collection or attempted collection of debts in this state;
(III) Is a person located outside this state whose collection activities are limited to collecting debts not incurred in this state from consumers located in this state and whose collection activities are conducted by means of interstate communications, including telephone, mail, or facsimile transmission, and who is located in another state that regulates and licenses collection agencies but does not require Colorado collection agencies to obtain a license to collect debts in their state if such agencies’ collection activities are limited in the same manner.
(3) “Communication” means conveying information regarding a debt in written or oral form, directly or indirectly, to any person through any medium.
(4) “Consumer” means any natural person obligated or allegedly obligated to pay any debt.
(4.5) (a) “Consumer reporting agency” means any person that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.
(b) “Consumer reporting agency” shall not include any business entity that provides check verification or check guarantee services only.
(c) “Consumer reporting agency” shall include any persons defined in 15 U.S.C. sec. 1681a (f) or section 12-14.3-102 (4).
(5) “Creditor” means any person who offers or extends credit creating a debt or to which a debt is owed, but such term does not include any person to the extent such person receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.
(6) (a) “Debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction, whether or not such obligation has been reduced to judgment.
(b) “Debt” does not include a debt for business, investment, commercial, or agricultural purposes or a debt incurred by a business.
(7) “Debt collector” means any person employed or engaged by a collection agency to perform the collection of debts owed or due or asserted to be owed or due to another, and includes any person employed by the department of personnel, or any division of said department, when collecting debts due to the state on behalf of another state agency.
(8) (Deleted by amendment, L. 2000, p. 935, § 2, effective July 1, 2000.)
(9) “Location information” means a consumer’s place of abode and his telephone number at such place or his place of employment.
(9.3) “Person” means a natural person, firm, corporation, limited liability company, or partnership.
(9.5) “Principal” means any individual having a position of responsibility in a collection agency, including but not limited to any manager, director, officer, partner, owner, or shareholder owning ten percent or more of the stock.
(10) “Solicitor” means any person employed or engaged by a collection agency who solicits or attempts to solicit debts for collection by such person or any other person.
(11) “State” means any state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of them.
12-14-104. Locationinformation – acquisition
(1) Any debt collector or collection agency communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall:
(a) Identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer;
(b) Not state that such consumer owes any debt;
(c) Not communicate with any such person more than once unless requested to do so by such person or unless the debt collector or collection agency reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information;
(d) Not communicate by postcard;
(e) Not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debtor collector or collection agency is in the debt collection business or that the communication relates to the collection of a debt; and
(f) After the debt collector or collection agency knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney’s name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time, not less than thirty days, to communication from the debt collector or collection agency.
12-14-105. Communication in connection with debt collection.
(1) Without the prior consent of the consumer given directly to the debt collector or collection agency or the express permission of a court of competent jurisdiction, a debt collector or collection agency shall not communicate with a consumer in connection with the collection of any debt:
(a) At any unusual time, place, or manner known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector or collection agency shall assume that the convenient time for communicating with a consumer is after 8 a.m. and before 9 p.m. local time at the consumer’s location.
(b) If the debt collector or collection agency knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney’s name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or collection agency or unless the attorney consents to direct communication with the consumer; or
(c) At the consumer’s place of employment if the debt collector or collection agency knows or has reason to know that the consumer’s employer prohibits the consumer from receiving such communication.
(2) Except as provided in section 12-14-104, without the prior consent of the consumer given directly to the debt collector or collection agency or the express permission of a court of competent jurisdiction or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector or collection agency shall not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the collection agency.
(3) (a) If a consumer notifies a debt collector or collection agency in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector or collection agency to cease further communication with the consumer, the debt collector or collection agency shall not communicate further with the consumer with respect to such debt, except to:
(I) Advise the consumer that the debt collector’s or collection agency’s further efforts are being terminated;
(II) Notify the consumer that the collection agency or creditor may invoke specified remedies that are ordinarily invoked by such collection agency or creditor; or
(III) Notify the consumer that the collection agency or creditor intends to invoke a specified remedy.
(b) If such notice from the consumer is made by mail, notification shall be complete upon receipt.
(c) In its initial written communication to a consumer, a collection agency shall include the following statement: “FOR INFORMATION ABOUT THE COLORADO FAIR DEBT COLLECTION PRACTICES ACT, SEE WWW.AGO.STATE.CO.US/CAB.HTM.” If such notification is placed on the back of the written communication, there shall be a statement on the front notifying the consumer of such fact.
(d) (Deleted by amendment, L. 2003, p. 1865, § 2, effective May 21, 2003.)
(4) For the purpose of this section, “consumer” includes the consumer’s spouse, parent (if the consumer is a minor), guardian, executor, or administrator.
(5) It shall be an affirmative defense to any action based upon failure of a debt collector or collection agency to comply with this section that the debt collector or collection agency believed, in good faith, that the debtor was other than a natural person.
12-14-106. Harassment or abuse.
(1) A debt collector or collection agency shall not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt, including, but not limited to, the following conduct:
(a) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person;
(b) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader;
(c) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of 15 U.S.C. sec. 1681b (a) (3) and section 12-14.3-103 (1) (c);
(d) The advertisement for sale of any debt to coerce payment of the debt or agreeing to do so for the purpose of solicitation of claims;
(e) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number;
(f) Except as provided in section 12-14-104, the placement of telephone calls without meaningful disclosure of the caller’s identity within the first sixty seconds after the other party to the call is identified as the debtor.
12-14-107. False or misleading representations.
(1) A debt collector or collection agency shall not use any false, deceptive, or misleading representation or means in connection with the collection of any debt, including, but not limited to, the following conduct:
(a) The false representation or implication that the debt collector or collection agency is vouched for, bonded by, or affiliated with the United States government or any state government, including the use of any misleading name, badge, uniform, or facsimile thereof;
(b) The false representation of:
(I) The character, amount, or legal status of any debt; or
(II) Any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt;
(c) The false representation or implication that any individual is an attorney or that any communication is from an attorney;
(d) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or in the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector, collection agency, or creditor intends to take such action;
(e) The threat to take any action that cannot legally be taken or that is not intended to be taken;
(f) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to:
(I) Lose any claim or defense to payment of the debt; or
(II) Become subject to any practice prohibited by this article;
(g) The false representation or implication that the consumer committed any crime;
(h) The false representation or implication that the consumer has engaged in any disgraceful conduct;
(i) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed;
(j) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any state or which creates a false or misleading impression as to its source, authorization, or approval;
(k) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer;
(l) Except as otherwise provided for communications to acquire location information under section 12-14-104, the failure to disclose clearly, in the initial written communication made to collect a debt or obtain information about a consumer and also, if the initial communication with the consumer is oral, in the initial oral communication, that the debt collector or collection agency is attempting to collect a debt and that any information obtained will be used for that purpose, and, in subsequent communications, that the communication is from a debt collector or collection agency; except that this paragraph (l) shall not apply to a formal pleading made in connection with a legal action;
(m) The false representation or implication that accounts have been turned over to innocent purchasers for value;
(n) The false representation or implication that documents are legal process;
(o) The use of any business, company, or organization name other than the true name of the collection agency’s business, company, or organization;
(p) The false representation or implication that documents are not legal process forms or do not require action by the consumer;
(q) The false representation or implication that a debt collector or collection agency operates or is employed by a consumer reporting agency.
12-14-108. Unfair Practices.
(1) A debt collector or collection agency shall not use unfair or unconscionable means to collect or attempt to collect any debt, including, but not limited to, the following conduct:
(a) The collection of any amount, including any interest, fee, charge, or expense incidental to the principal obligation, unless such amount is expressly authorized by the agreement creating the debt or permitted by law;
(b) The acceptance by a debt collector or collection agency from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector’s or collection agency’s intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit;
(c) The solicitation by a debt collector or collection agency of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution;
(d) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument;
(e) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.
(f) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if:
(I) There is no present right to possession of the property claimed as collateral through an enforceable security interest;
(II) There is no present intention to take possession of the property; or
(III) The property is exempt by law from such dispossession or disablement;
(g) Communicating with a consumer regarding a debt by postcard;
(h) Using any language or symbol, other than the debt collector’s or collection agency’s address, on any envelope when communicating with a consumer by use of the mails or by telegram; except that a debt collector or collection agency may use his business name if such name does not indicate that he is in the debt collection business;
(i) Failing to comply with the provisions of section 13-21-109, C.R.S., regarding the collection of checks, drafts, or orders not paid upon presentment;
(j) Communicating credit information to a consumer reporting agency earlier than thirty days after the initial notice to the consumer has been mailed, unless the consumer’s last-known address is known to be invalid. This paragraph (j) shall not apply to checks, negotiable instruments, or credit card drafts.
12-14-109. Validation of debts.
(1) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector or collection agency shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice with the disclosures specified in paragraphs (a) to (e) of this subsection (1). If such disclosures are placed on the back of the notice, the front of the notice shall contain a statement notifying consumers of that fact. Such disclosures shall state:
(a) The amount of the debt;
(b) The name of the creditor to whom the debt is owed;
(c) That, unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector or collection agency;
(d) That, if the consumer notifies the debt collector or collection agency in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector or collection agency will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector or collection agency;
(e) That upon the consumer’s written request within the thirty-day period, the debt collector or collection agency will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(f) and (g) (Deleted by amendment, L. 2003, p. 1866, § 4, effective May 21, 2003.)
(2) If the consumer notifies the debt collector or collection agency in writing within the thirty-day period described in paragraph (c) of subsection (1) of this section that the debt, or any portion thereof, is disputed or that the consumer requests the name and address of the original creditor, the debt collector or collection agency shall cease collection of the debt, or any disputed portion thereof, until the debt collector or collection agency obtains verification of the debt or a copy of a judgment or the name and address of the original creditor and mails a copy of such verification or judgment or name and address of the original creditor to the consumer.
(3) The failure of a consumer to dispute the validity of a debt under this section shall not be construed by any court as an admission of liability by the consumer.
(4) It shall be an affirmative defense to any action based upon failure of a debt collector or collection agency to comply with this section that the debt collector or collection agency believed, in good faith, that the debtor was other than a natural person.
12-14-110. Multiple debts.
If any consumer owes multiple debts and makes any single payment to any collection agency with respect to such debts, such collection agency shall not apply such payment to any debt which is disputed by the consumer and when so informed shall apply such payment in accordance with the consumer’s directions.
12-14-111. Legal actions by collection agencies.
(1) Any debt collector or collection agency who brings any legal action on a debt against any consumer shall:
(a) In the case of an action to enforce an interest in real property securing the consumer’s obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or
(b) In the case of an action not described in paragraph (a) of this subsection (1), bring such action only in the judicial district or similar legal entity in which:
(I) Such consumer signed the contract sued upon;
(II) Such consumer resides at the commencement of the action; or
(III) Such action may be brought pursuant to article 13 or 13.5 of title 26, C.R.S., section 14-14-104, C.R.S., or article 4 or 6 of title 19, C.R.S., if the action is by a private collection agency acting on behalf of a delegate child support enforcement unit.
12-14-112. Deceptive forms
(1) It is unlawful for any person to design, compile, and furnish any form knowing that such form would be used to create the false belief in a consumer that a person other than the creditor of such consumer is participating in the collection or in the attempted collection of a debt that such consumer allegedly owes such creditor when in fact such person is not so participating.
(2) Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector or collection agency under section 12-14-113 for failure to comply with this article.
(3) This section shall apply if the person supplying or using the forms or the consumer receiving the forms is located within this state.
12-14-113. Civil liability.
(1) In addition to administrative enforcement pursuant to section 12-14-114 and subject to section 12-14-134 and the limitations provided by subsection (9) of this section, and except as otherwise provided by this section, any debt collector or collection agency who fails to comply with any provision of this article with respect to a consumer is liable to such consumer in an amount equal to the sum of:
(a) Any actual damage sustained by such consumer as a result of such failure;
(b) (I) In the case of any action by an individual, such additional damages as the court may allow, but not to exceed one thousand dollars;
(II) In the case of a class action, such amount for each named plaintiff as could be recovered under subparagraph (I) of this paragraph (b) and such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed five hundred thousand dollars or one percent of the net worth of the debt collector or collection agency, whichever is the lesser; and
(c) In the case of any successful action to enforce such liability, the costs of the action, together with such reasonable attorney fees as may be determined by the court.
(1.5) In the case of any unsuccessful action brought under this section, the plaintiff shall be liable to each defendant in an amount equal to that defendant’s cost incurred in defending the action, together with such reasonable attorney fees as may be determined by the court.
(2) In determining the amount of liability in any action under subsection (1) of this section, the court shall consider, among other relevant factors:
(a) In any individual action under subparagraph (I) of paragraph (b) of subsection (1) of this section, the frequency and persistence of noncompliance by the debt collector or collection agency, the nature of such noncompliance, and the extent to which such noncompliance was intentional;
(b) In any class action under subparagraph (II) of paragraph (b) of subsection (1) of this section, the frequency and persistence of noncompliance by the debt collector or collection agency, the nature of such noncompliance, the resources of the debt collector or collection agency, the number of persons adversely affected, and the extent to which the debt collector’s or collection agency’s noncompliance was intentional.
(3) A debt collector or collection agency may not be held liable in any action brought pursuant to the provisions of this article if the debt collector or collection agency shows by a preponderance of evidence that the violation was not intentional or grossly negligent and which violation resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(4) An action to enforce any liability created by the provisions of this article may be brought in any court of competent jurisdiction within one year from the date on which the violation occurs.
(5) No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the board, notwithstanding that, after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(6) The policy of this state is not to award double damages under this article and the federal “Fair Debt Collection Practices Act”, 15 U.S.C. 1692 et seq. No damages under this section shall be recovered if damages are recovered for a like provision of said federal act.
(7) Notwithstanding subsection (1) of this section, harassment of the employer or the family of a consumer shall be considered an invasion of privacy and a civil action may be brought which is not subject to the damage limitations of said subsection (1).
(8) It shall be an affirmative defense to any action based upon failure of a debt collector or collection agency to comply with this section that the debt collector or collection agency believed, in good faith, that the debtor was other than a natural person.
(9) There shall be no private cause of action under this section for any alleged violation of section 12-14-128 (4) (a). Violations of section 12-14-128 (4) (a) may be prosecuted only through administrative enforcement pursuant to section 12-14-114.
Website:
Sec. 36a-805. Prohibited practices.
(a) No consumer collection agency shall:
(1) Furnish legal advice or perform legal services or represent that it is competent to do so, or institute judicial proceedings on behalf of others;
(2) communicate with consumer debtors or property tax debtors in the name of an attorney or upon the stationery of an attorney, or prepare any forms or instruments which only attorneys are authorized to prepare;
(3) purchase or receive assignments of claims for the purpose of collection or institute suit thereon in any court;
(4) assume authority on behalf of a creditor to employ or terminate the services of an attorney unless such creditor has authorized such agency in writing to act as such creditor’s agent in the selection of an attorney to collect the creditor’s accounts;
(5) demand or obtain in any manner a share of the proper compensation for services performed by an attorney in collecting a claim, whether or not such agency has previously attempted collection thereof;
(6) solicit claims for collection under an ambiguous or deceptive contract;
(7) refuse to return any claim or claims upon written request of the creditor, claimant or forwarder, which claims are not in the process of collection after the tender of such amounts, if any, as may be due and owing to the agency;
(8) advertise or threaten to advertise for sale any claim as a means of forcing payment thereof, unless such agency is acting as the assignee for the benefit of creditors;
(9) refuse or fail to account for and remit to its clients all money collected which is not in dispute within sixty days from the last day of the month in which said money is collected;
(10) refuse or intentionally fail to return to the creditor all valuable papers deposited with a claim when such claim is returned;
(11) refuse or fail to furnish at intervals of not less than ninety days, upon the written request of the creditor, claimant or forwarder, a written report upon claims received from such creditor, claimant or forwarder;
(12) commingle money collected for a creditor, claimant or forwarder with its own funds or use any part of a creditor’s, claimant’s or forwarder’s money in the conduct of its business;
(13) add any charge or fee to the amount of any claim which it receives for collection or knowingly accept for collection any claim to which any charge or fee has already been added to the amount of the claim unless the consumer debtor is legally liable therefor, in which case, the collection charge or fee may not be in excess of fifteen per cent of the amount actually collected on the debt;
(14) use or attempt to use or make reference to the term “bonded by the state of Connecticut”, “bonded” or “bonded collection agency” or any combination of such terms or words, except that the word “bonded” may be used on the stationery of any such agency in type not larger than twelve-point; or
(15) engage in any activities prohibited by sections 36a- 800 to 36a-810, inclusive.
(b) No consumer collection agency shall impose a charge or fee for any child support payments collected through the efforts of a governmental agency. If the imposition of a charge or fee is permitted under section 36a-801b, no consumer collection agency shall impose a charge or fee for the collection of any child support overdue at the time of the contract in excess of twenty-five per cent of overdue support actually collected.
(c) No consumer collection agency shall receive any property tax on behalf of a creditor that is a municipality.
Sec. 36a-806. (Formerly Sec. 42-131a). Prohibited practices within and without state. Examination of affairs. (a) No consumer collection agency shall engage in this state in any practice which is prohibited in section 36a-805 or determined pursuant to sections 36a-807 and 36a-808 to be an unfair or deceptive act or practice, nor shall any consumer collection agency engage outside of this state in any act or practice prohibited in said section 36a-805. The commissioner shall have power to examine the affairs of every consumer collection agency in this state in order to determine whether it has been or is engaged in any act or practice prohibited by sections 36a-805 to 36a-808, inclusive.
(b) No creditor shall retain, hire, or engage the services or continue to retain or engage the services of any person who engages in the business of a consumer collection agency and who is not licensed to act as such by the commissioner, if such creditor has actual knowledge that such person is not licensed by the commissioner to act as a consumer collection agency.
State of Connecticut Statutes Online:
http://www.cga.ct.gov/asp/menu/Statutes.asp
http://www.delcode.state.de.us/
Title 33, PART VI. CONSUMER COLLECTION PRACTICES
559.55 Definitions. – The following terms shall, unless the context otherwise indicates, have the following meanings for the purpose of this part:
(1) “Debt” or “consumer debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment.
(2) “Debtor” or “consumer” means any natural person obligated or allegedly obligated to pay any debt.
(3) “Creditor” means any person who offers or extends credit creating a debt or to whom a debt is owed, but does not include any person to the extent that they receive an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.
(4) “Office” means the Office of Financial Regulation of the Financial Services Commission.
(5) “Communication” means the conveying of information regarding a debt directly or indirectly to any person through any medium.
(6) “Debt collector” means any person who uses any instrumentality of commerce within this state, whether initiated from within or outside this state, in any business the principal purpose of which is the collection of debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. The term “debt collector” includes any creditor who, in the process of collecting her or his own debts, uses any name other than her or his own which would indicate that a third person is collecting or attempting to collect such debts. The term does not include:
(a) Any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;
(a) Any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;
(b) Any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector for persons to whom it is so related or affiliated and if the principal business of such persons is not the collection of debts;
(c) Any officer or employee of any federal, state, or local governmental body to the extent that collecting or attempting to collect any debt is in the performance of her or his official duties; M.
(d) Any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt;
(e) Any not-for-profit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; or
(f) Any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent that such activity is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; concerns a debt which was originated by such person; concerns a debt which was not in default at the time it was obtained by such person; or concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor.
(7) “Consumer collection agency” means any debt collector or business entity engaged in the business of soliciting consumer debts for collection or of collecting consumer debts, which debt collector or business is not expressly exempted as set forth in s. 559.553(4).
(8) “Out-of-state consumer debt collector” means any person whose business activities in this state involve both collecting or attempting to collect consumer debt from debtors located in this state by means of interstate communication originating from outside this state and soliciting consumer debt accounts for collection from creditors who have a business presence in this state. For purposes of this subsection, a creditor has a business presence in this state if either the creditor or an affiliate or subsidiary of the creditor has an office in this state.
(9) “Federal Fair Debt Collection Practices Act” or “Federal Act” means the federal legislation regulating fair debt collection practices, as set forth in Pub. L. No. 95-109, as amended and published in 15 U.S.C. ss. 1692 et seq.
599.551 Short title.-Sections 559.55-559.785 may be cited as the “Florida Consumer Collection Practices Act.”
559.552 Relationship of state and federal law-Nothing in this part shall be construed to limit or restrict the continued applicability of the federal Fair Debt Collection Practices Act to consumer collection practices in this state. This part is in addition to the requirements and regulations of the federal act. In the event of any inconsistency between any provision of this part and any provision of the federal act, the provision which is more protective of the consumer or debtor shall prevail.
559.553 Registration of consumer collection agencies required; exemptions.– (1) After January 1, 1994, no person shall engage in business in this state as a consumer collection agency or continue to do business in this state as a consumer collection agency without first registering in accordance with this part, and thereafter maintaining a valid registration.
(2) Each consumer collection agency doing business in this state shall register with the office and renew such registration annually as set forth in s. 559.555.
(3) A prospective registrant shall be entitled to be registered when registration information is complete on its face and the applicable registration fee has been paid; however, the office may reject a registration submitted by a prospective registrant if the registrant or any principal of the registrant previously has held any professional license or state registration which was the subject of any suspension or revocation which has not been explained by the prospective registrant to the satisfaction of the office either in the registration information submitted initially or upon the subsequent written request of the office. In the event that an attempted registration is rejected by the office the prospective registrant shall be informed of the basis for rejection.
(4) This section shall not apply to:
(a) Any original creditor.
(b) Any member of The Florida Bar.
(c) Any financial institution authorized to do business in this state and any wholly owned subsidiary and affiliate thereof.
(d) Any licensed real estate broker.
(e) Any insurance company authorized to do business in this state.
(f) Any consumer finance company and any wholly owned subsidiary and affiliate thereof.
(g) Any person licensed pursuant to chapter 520.
(h) Any out-of-state consumer debt collector who does not solicit consumer debt accounts for collection from credit grantors who have a business presence in this state.
(i) Any FDIC-insured institution or subsidiary or affiliate thereof.
(5) Any out-of-state consumer debt collector as defined in s. 559.55(8) who is not exempt from registration by application of subsection (4) and who fails to register in accordance with this part shall be subject to an enforcement action by the state as specified in s. 559.565.
559.555 Registration of consumer collection agencies; procedure.-Any person required to register as a consumer collection agency shall furnish to the office the registration fee and information as follows:
(1) The registrant shall pay to the office a registration fee in the amount of $200. All amounts collected shall be deposited by the office to the credit of the Regulatory Trust Fund of the office.
(2) Each registrant shall provide to the office the business name or trade name, the current mailing address, the current business location which constitutes its principal place of business, and the full name of each individual who is a principal of the registrant. “Principal of a registrant” means the registrant’s owners if a partnership or sole proprietorship, corporate officers, corporate directors other than directors of a not-for-profit corporation organized pursuant to chapter 617 and Florida resident agent if a corporate registrant. The registration information shall include a statement clearly identifying and explaining any occasion on which any professional license or state registration held by the registrant, by any principal of the registrant, or by any business entity in which any principal of the registrant was the owner of 10 percent or more of such business, was the subject of any suspension or revocation.
(3) Renewal of registration shall be made between October 1 and December 31 of each year. There shall be no proration of the fee for any registration.
559.563 Void registration.–Any registration made under this part based upon false identification or false information, or identification not current with respect to name, address, and business location, or other fact which is material to such registration, shall be void. Any registration made and subsequently void under this section shall not be construed as creating any defense in any action by the office to impose any sanction for any violation of this part.
559.565 Enforcement action against out-of-state consumer debt collector.-The remedies of this section are cumulative to other sanctions and enforcement provisions of this part for any violation by an out-of-state consumer debt collector, as defined in s. 559.55(8).
(1) Any out-of-state consumer debt collector who collects or attempts to collect consumer debts in this state without first registering in accordance with this part shall be subject to an administrative fine not to exceed $1,000 together with reasonable attorney fees and court costs in any successful action by the state to collect such fines.
(2) Any person, whether or not exempt from registration under this part, who violates the provisions of s. 559.72 shall be subject to sanctions for such violations the same as any other consumer debt collector, including imposition of an administrative fine. The registration of a duly registered out-of-state consumer debt collector shall be subject to revocation or suspension in the same manner as the registration of any other registrant under this part.
(3) In order to effectuate the provisions of this section and enforce the requirements of this part as it relates to out-of-state consumer debt collectors, the Attorney General is expressly authorized to initiate such action on behalf of the state as he or she deems appropriate in any federal district court of competent jurisdiction.
559.715 Assignment of consumer debts-This part does not prohibit the assignment, by a creditor, of the right to bill and collect a consumer debt. However, the assignee must give the debtor written notice of such assignment within 30 days after the assignment. The assignee is a real party in interest and may bring an action in a court of competent jurisdiction to collect a debt that has been assigned to such assignee and is in default.
559.72 Prohibited practices generally.–In collecting consumer debts, no person shall:
(1) Simulate in any manner a law enforcement officer or a representative of any governmental agency;
(2) Use or threaten force or violence;
(3) Tell a debtor who disputes a consumer debt that she or he or any person employing her or him will disclose to another, orally or in writing, directly or indirectly, information affecting the debtor’s reputation for credit worthiness without also informing the debtor that the existence of the dispute will also be disclosed as required by subsection (6);
(4) Communicate or threaten to communicate with a debtor’s employer prior to obtaining final judgment against the debtor, unless the debtor gives her or his permission in writing to contact her or his employer or acknowledges in writing the existence of the debt after the debt has been placed for collection, but this shall not prohibit a person from telling the debtor that her or his employer will be contacted if a final judgment is obtained;
(5) Disclose to a person other than the debtor or her or his family information affecting the debtor’s reputation, whether or not for credit worthiness, with knowledge or reason to know that the other person does not have a legitimate business need for the information or that the information is false;
(6) Disclose information concerning the existence of a debt known to be reasonably disputed by the debtor without disclosing that fact. If a disclosure is made prior to such reasonable dispute having been asserted and written notice is received from the debtor that any part of the debt is disputed and if such dispute is reasonable, the person who made the original disclosure shall reveal upon the request of the debtor within 30 days the details of the dispute to each person to whom disclosure of the debt without notice of the dispute was made within the preceding 90 days;
(7) Willfully communicate with the debtor or any member of her or his family with such frequency as can reasonably be expected to harass the debtor or her or his family, or willfully engage in other conduct which can reasonably be expected to abuse or harass the debtor or any member of her or his family;
(8) Use profane, obscene, vulgar, or willfully abusive language in communicating with the debtor or any member of her or his family;
(9) Claim, attempt, or threaten to enforce a debt when such person knows that the debt is not legitimate or assert the existence of some other legal right when such person knows that the right does not exist;
(10) Use a communication which simulates in any manner legal or judicial process or which gives the appearance of being authorized, issued or approved by a government, governmental agency, or attorney at law, when it is not;
(11) Communicate with a debtor under the guise of an attorney by using the stationery of an attorney or forms or instruments which only attorneys are authorized to prepare;
(12) Orally communicate with a debtor in such a manner as to give the false impression or appearance that such person is or is associated with an attorney;
(13) Advertise or threaten to advertise for sale any debt as a means to enforce payment except under court order or when acting as an assignee for the benefit of a creditor;
(14) Publish or post, threaten to publish or post, or cause to be published or posted before the general public individual names or any list of names of debtors, commonly known as a deadbeat list, for the purpose of enforcing or attempting to enforce collection of consumer debts;
(15) Refuse to provide adequate identification of herself or himself or her or his employer or other entity whom she or he represents when requested to do so by a debtor from whom she or he is collecting or attempting to collect a consumer debt;
(16) Mail any communication to a debtor in an envelope or postcard with words typed, written, or printed on the outside of the envelope or postcard calculated to embarrass the debtor. An example of this would be an envelope addressed to “Deadbeat, Jane Doe” or “Deadbeat, John Doe”;
(17) Communicate with the debtor between the hours of 9 p.m. and 8 a.m. in the debtor’s time zone without the prior consent of the debtor;
(18) Communicate with a debtor if the person knows that the debtor is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney’s name and address, unless the debtor’s attorney fails to respond within a reasonable period of time to a communication from the person, unless the debtor’s attorney consents to a direct communication with the debtor, or unless the debtor initiates the communication; or
(19) Cause charges to be made to any debtor for communications by concealment of the true purpose of the communication, including collect telephone calls and telegram fees.
559.725 Consumer complaints; administrative duties.-
(1) The Division of Consumer Services of the Department of Financial Services shall serve as the registry for receiving and maintaining records of inquiries, correspondence, and complaints from consumers concerning any and all persons who collect debts, including consumer collection agencies.
(2) The division shall classify complaints by type and identify the number of written complaints against persons collecting or attempting to collect debts in this state, including credit grantors collecting their own debts, debt collectors generally, and, specifically, consumer collection agencies as distinguished from other persons who collect debts such as commercial debt collection agencies regulated under part V of this chapter. The division shall identify the nature and number of various kinds of written complaints, including specifically those alleging violations of s. 559.72.
(3) The division shall inform and furnish relevant information to the appropriate regulatory body of the state, or The Florida Bar in the case of attorneys, when any consumer debt collector exempt from registration under this part has been named in five or more written consumer complaints alleging violations of s. 559.72 within a 12-month period.
(4) The division shall furnish a form to each complainant whose complaint concerns an alleged violation of s. 559.72 by a consumer collection agency. Such form may be filed with the office. The form shall identify the accused consumer collection agency and provide for the complainant’s summary of the nature of the alleged violation and facts which allegedly support the complaint. The form shall include a provision for the complainant to state under oath before a notary public that the allegations therein made are true.
(5) Upon receipt of such sworn complaint, the office shall promptly furnish a copy of the sworn complaint to the accused consumer collection agency.
(6) The office shall investigate sworn complaints by direct written communication with the complainant and the affected consumer collection agency. In addition, the office shall attempt to resolve each sworn complaint and shall record the resolution of such complaints.
(7) Periodically, the office shall identify consumer collection agencies that have unresolved sworn consumer complaints from five or more different consumers within a 12-month period under the provisions of this part.
(8) The office shall issue a written warning notice to the accused consumer collection agency if the office is unable to resolve all such sworn complaints and fewer than five unresolved complaints remain. Such notice shall include a statement that the warning may constitute evidence in any future investigation of similar complaints against that agency and in any future administrative determination of the imposition of other administrative remedies available to the office under this part.
(9) The office may issue a written reprimand when five or more such unresolved sworn complaints against a consumer collection agency collectively fall short of constituting apparent repeated violations that warrant more serious administrative sanctions. Such reprimand shall include a statement that the reprimand may constitute evidence in any future investigation of similar complaints against that agency and in any future administrative determination of the imposition of other administrative remedies available to the office.
(10) The office shall issue a notice of intent either to revoke or suspend the registration or to impose an administrative fine when the office preliminarily determines that repeated violations of s. 559.72 by an accused registrant have occurred which would warrant more serious administrative sanctions being imposed under this part. The office shall advise each registrant of the right to require an administrative hearing under chapter 120, prior to the agency’s final action on the matter as authorized by s. 559.730.
(11) The office shall advise the appropriate state attorney, or the Attorney General in the case of an out-of-state consumer debt collector, of any determination by the office of a violation of the requirements of this part by any consumer collection agency which is not registered as required by this part. The office shall furnish the state attorney or Attorney General with the office’s information concerning the alleged violations of such requirements.
559.730 Administrative remedies.-
(1) The office may revoke or suspend the registration of any registrant under this part who has engaged in repeated violations which establish a clear pattern of abuse of prohibited collection practices under s. 559.72. Final office action to revoke or suspend the registration of any registrant shall be subject to review in accordance with chapter 120 in the same manner as revocation of a license. The repeated violations of the law by one employee shall not be grounds for revocation or suspension of the registration of the employing consumer collection agency, unless the employee is also the owner of a majority interest in the collection agency.
(2) The registration of a registrant shall not be revoked or suspended if the registrant shows by a preponderance of the evidence that the violations were not intentional and resulted from bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(3) The office shall consider the number of complaints against the registrant in relation to the accused registrant’s volume of business when determining whether suspension or revocation is the more appropriate sanction when circumstances warrant that one or the other should be imposed upon a registrant.
(4) The office shall impose suspension rather than revocation when circumstances warrant that one or the other should be imposed upon a registrant and the accused registrant demonstrates that the registrant has taken affirmative steps which can be expected to effectively eliminate the repeated violations and that the registrant’s registration has never previously been suspended.
(5) The office may impose an administrative fine up to $1,000 against the offending registrant as a sanction for repeated violations of the provisions of s. 559.72 when violations do not rise to the level of misconduct governed by subsection (1). Final office action to impose an administrative fine shall be subject to review in accordance with ss. 120.569 and 120.57.
(6) Any administrative fine imposed under this part shall be payable to the office. The office shall maintain an appropriate record and shall deposit such fine into the Regulatory Trust Fund of the office.
(7) An administrative action by the office to impose revocation, suspension, or fine shall be brought within 2 years after the date of the last violation upon which the action is founded.
(8) Nothing in this part shall be construed to preclude any person from pursuing remedies available under the Federal Fair Debt Collection Practices Act for any violation of such act, including specifically against any person who is exempt from the registration provisions of this part.
559.77 Civil remedies.–
(1) A debtor may bring a civil action against a person violating the provisions of s. 559.72 in a court of competent jurisdiction of the county in which the alleged violator resides or has his or her principal place of business or in the county wherein the alleged violation occurred.
(2) Upon adverse adjudication, the defendant shall be liable for actual damages and for additional statutory damages of up to $1,000, together with court costs and reasonable attorney’s fees incurred by the plaintiff. In determining the defendant’s liability for any additional statutory damages, the court shall consider the nature of the defendant’s noncompliance with s. 559.72, the frequency and persistence of such noncompliance, and the extent to which such noncompliance was intentional. In any class action lawsuit brought under this section, the court may award additional statutory damages of up to $1,000 for each named plaintiff and an aggregate award of additional statutory damages not to exceed the lesser of $500,000 or 1 percent of the defendant’s net worth for all remaining class members, but in no event may this aggregate award provide an individual class member with additional statutory damages in excess of $1,000. The court may, in its discretion, award punitive damages and may provide such equitable relief as it deems necessary or proper, including enjoining the defendant from further violations of this part. If the court finds that the suit fails to raise a justiciable issue of law or fact, the plaintiff shall be liable for court costs and reasonable attorney’s fees incurred by the defendant.
(3) A person shall not be held liable in any action brought under this section if the person shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(4) An action brought under this section must be commenced within 2 years after the date on which the alleged violation occurred.
(5) In applying and construing this section, due consideration and great weight shall be given to the interpretations of the Federal Trade Commission and the federal courts relating to the federal Fair Debt Collection Practices Act.
559.78 Judicial enforcement.–In addition to other penalties provided in this part, state attorneys and their assistants are authorized to apply to the court of competent jurisdiction within their respective jurisdictions, upon the sworn affidavit of any person alleging a violation of any of the provisions of this part. Such court shall have jurisdiction, upon hearing and for cause shown, to grant a temporary or permanent injunction restraining any person from violating any provision of this part, whether or not there exists an adequate remedy at law; and such injunction, suspension, or revocation shall issue without bond.
559.785 Criminal penalty.–It shall be a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083, for any person not exempt from registering as provided in this part to engage in collecting consumer debts in this state without first registering with the office, or to register or attempt to register by means of fraud, misrepresentation, or concealment.
Website: http://www.flsenate.gov/statutes/index.cfm?Mode=ViewStatutes
Banking and Finance. Title 07-3, Section 25
(a) Any license shall be subject to suspension or revocation, after notice and hearing as provided for in Code Section 7-3-24, in the event unreasonable collection tactics shall be willfully used by the licensee or any employee or agent thereof. Unreasonable collection tactics shall include, but not be limited to, any conduct by the licensee or any employee or agent thereof which:
(1) Causes the borrower or any member of his family to suffer bodily injury or physical harm;
(2) Constitutes a willful or intentional trespass by force of the borrower’s home or his personal property without process of law;
(3) Holds up the borrower to public ridicule or unreasonably degrades him in the presence of his neighbors or business associates;
(4) Involves use of printed material which simulates or resembles a summons, warrant, or other legal process; or
(5) Although otherwise lawful, occurs at an unreasonable hour of the night. Attempts to make collections by means of personal visits, telephone calls, and the like shall be deemed to occur at an unreasonable hour of the night if they occur between the hours of 10:00 p.m. and 5:00 a.m.
(b) Any order or decision of the Commissioner on the matter of suspension or revocation shall be subject to review as provided for in Code Section 7-3-27.
Website: http://www.legis.state.ga.us
[CHAPTER 443B] COLLECTION AGENCIES
§443B-1 Definitions. As used in this chapter:
“Client” means a person who offered or extended credit which created a debt, or to whom a debt is owed, and who engages the professional services of a collection agency. The term does not include any person who receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of a debt for another.
“Collection agency” means any person, whether located within or outside this State, who by oneself or through others offers to undertake or holds oneself out as being able to undertake or does undertake to collect for another person, claims or money due on accounts or other forms of indebtedness for a commission, fixed fee, or a portion of the sums so collected.
“Collection agency” includes:
(1) Any person using any name other than the person’s own in collecting the person’s own claims with the intention of conveying, or which tends to convey the impression that a third party has been employed;
(2) Any person who, in the conduct of the person’s business for a fee, regularly repossesses any merchandise or chattels for another; and
(3) Any person who regularly accepts the assignment of claims or money due on accounts or other forms of indebtedness and brings suits upon the assigned claims or money due on accounts or other forms of indebtedness in the person’s own name; provided that any suits shall be initiated and prosecuted by an attorney who shall have been appointed by the assignee.
“Collection agency” does not include licensed attorneys at law acting within the scope of their profession, licensed real estate brokers, and salespersons residing in this State when engaged in the regular practice of their profession, nor banks, trust companies, building and loan associations, savings and loan associations, financial services loan companies, credit unions, companies doing an escrow business, individuals regularly employed on a regular wage or salary in the capacity of credit persons or in other similar capacity for a single employer who is not a collection agency, nor any public officer or any person acting under an order of court.
§443B-3 Registration required.(a) No collection agency shall collect or attempt to collect any money or any other forms of indebtedness alleged to be due and owing from any person who resides or does business in this State without first registering under this chapter. (b) Registration shall include: (1) Submission of a complete application for registration; (2) Submission of a certificate of good standing or a certificate of authority from the business registration division; (3) Payment of appropriate fees; (4) Filing and maintenance of a bond in the amount prescribed in section 443B-5; (5) Maintenance of a regular active business office in the State; and (6) Designation of a principal collector, as prescribed in section 443B-6. (c) Any collection agency which has filed a bond with the director and maintained that bond in full force and effect, and which has not filed an application and paid the registration fee within ninety days of June 6, 1987, shall submit an application in the same manner as a new applicant subject to the provisions of sections 443B-4 and 443B-6.
[§443B-3.5] Exempt out-of-state collection agency. (a) A collection agency licensed or registered as a collection agency in another state, may apply for designation as an exempt out-of-state collection agency and conduct business in this State pursuant to this section. A collection agency granted designation as an exempt out-of-state collection agency shall be exempt from registration and other regulatory requirements under this chapter except as provided in this section.
(b) A collection agency may apply for designation as an exempt out-of-state collection agency; provided that the collection agency:
(A) Regulates collection agencies; and (B) Does not require a Hawaii collection agency to obtain a license or register to collect debts in that state if the activities of the Hawaii collection agency are limited to those described in paragraphs (2), (3), and (4);
(2) Is collecting debts on behalf of an out-of-state creditor;
(3) Does not solicit or engage in collection activities for clients in this State; and
(4) Only collects debts in this State using interstate communication methods, including telephone, facsimile, or mail.
(c) An applicant for designation as an exempt out-of-state collection agency shall submit the following:
(1) An application for an out-of-state collection agency exemption as prescribed by the director;
(2) Verification that: (A) The collection agency holds a current license, permit, or registration to conduct business as a collection agency in another state; (B) Is in good standing with and has compiled with the laws of that state, including the maintenance of a bond, if required, and in the amount required by the state; and (C) The collection agency’s state of licensure does not require Hawaii collection agencies to register or become licensed in that state before collecting debts in that state;
(3) An agreement in writing to comply with the requirements of sections 443B-9, 443B-15, 443B-16, 443B-17, 443B-18, and 443B-19; and
(4) Payment of the following nonrefundable fees: (A) With the application, and application fee of $25; and
(B) Upon approval of an out-of-state collection agency exemption, the compliance resolution fund fee for collection agencies.
(d) An exempt out-of-state collection agency may renew the exemption biennially by June 30 of each even-numbered year pursuant to subsection (c).
(e) An out-of-state collection agency shall not collect or attempt to collect any money or any other form of indebtedness alleged to be due and owing from any person who resides or does business in this State without first registering under this chapter or receiving an exemption pursuant to this section.
f) An exempt out-of-state collection agency shall be subject to sections 443B-9,
443B-15, 443B-16, 443B-17, 443B-18, and 443B-19, and all remedies provided by this chapter and by any other law
§443B-4.57 Fine, revocation, suspension, termination, denial of registration, renewal of registration, or restoration of registration. In addition to any other actions authorized by law, the director may fine any agency, revoke or terminate any registration, suspend the right of the registrant to use the registration, or refuse to renew or restore a registration for any cause authorized by law, including but not limited to the following:
(1) Dishonesty, deceit, fraud, or gross negligence in conducting business as a collection agency;
(2) Advertising by means of false and deceptive statements or by statements which tend to deceive or defraud;
(3) Advertising or acting as a collection agency without a current and active certificate of registration issued under this chapter;
(4) Violation of any provision of this chapter or the rules adopted pursuant thereto;
(5) Commingling of clients’ funds or other property;
(6) Breach of fiduciary duty;
(7) Failure to notify the director in writing of any material change in information; and
(8) Providing false or misleading information at the time of application or during the time of registration.
[§443B-4.63] Furnishing deceptive forms. It is unlawful for any person who is not a registered collection agency to design, compile, or furnish any form knowing that the form could be used to create a belief in a debtor that the person who designed, compiled or furnished the form is a collection agency.
[§443B-6] Place of business; principal collector. (a) A collection agency shall have andmaintain a regular active business office in the State for the purpose of conducting collection agency business. The business office shall be open to the public during stated reasonable business hours. (b) Every collection agency shall designate a principal collector to assume responsibility for the direct management and control of the daily operation of the office.
(b) A collection agency shall not commingle the money of its clients with its own, but shall maintain a separate trust account for clients’ funds in a federally insured financial institution.
§443B-9 Collection, attorney’s, or commission fees; exception. (a) A collection agency shall not collect, or attempt to collect, any collection fee or attorney’s fee or commission from any debtor; provided that an attorney’s fee or commission may be collected after filing of a suit against any debtor and the fee or commission shall not be in excess of twenty-five per cent of the unpaid principal balance. All attorney’s fees or commissions collected by a collection agency shall be remitted to the attorney and no portion of the collection shall be retained by the collection agency. (b) This section shall not prohibit a collection agency from collecting, or attempting to collect, from a debtor, a commission authorized under a contract with the University of Hawaii pursuant to section 304-93(b), or a contract with the department of taxation pursuant to sections 231-13 and231-26.
§443B-15 Threats or coercion.No collection agency shall collect or attempt to collect any money or other forms of indebtedness alleged to be due and owing by means of any threat, coercion, or attempt to coerce, including any conduct which is described as follows: (1) The use, or express or implicit threat of use, of violence or other criminal means to cause harm to the person, reputation, or property of any person; (2) The accusation or threat to falsely accuse any person of fraud or any crime or any conduct which, if true, would tend to disgrace the other person or in any way subject a person to ridicule or any conduct which, if true, would tend to disgrace the other person or in any way subject a person to the ridicule or contempt of society; (3) False accusations made to another person, including any credit reporting agency that a debtor or an alleged debtor has not paid a just debt, or threat to so make false accusations; (4) The threat to sell or assign to another the obligation of a debtor or an alleged debtor
with an attending representation or implication that the result of the sale or assignment would be that the debtor or alleged debtor would lose any defense to the claim or would be subjected to harsh, vindictive, or abusive collection attempts; and (5) The threat that nonpayment of an alleged claim will result in the arrest of any person.
[§443B-16] Harassment and abuse. No collection agency shall oppress, harass, or abuse any person in connection with the collection of or attempt to collect any claim alleged to be due and owing by that person or another in any of the following ways: (1) The use of profane or obscene language that is intended to abuse the hearer or reader; (2) The placement of telephone calls without disclosure of the caller’s identity or with the intent to harass, or threaten any person at the called number; and (3) Causing expense to any person in the form of long distance telephone tolls, telegram fees, or other charge incurred by a medium of communication, by concealment of the true purpose of the notice, letter, message, or communication.
[§443B-17] Unreasonable publication. No collection agency shall unreasonably publicize information relating to any alleged indebtedness or debtor, in any of the following ways:
(1) The disclosure, publication, or communication of any false information relating to the indebtedness of a debtor or alleged debtor to any employer or the employer’s agent;
(2) The disclosure, publication, or communication of false information relating to the indebtedness of a debtor or alleged debtor to any relative or family member of the debtor or alleged debtor;
(3) The disclosure, publication, or communication of any information by a collection agency relating to the indebtedness of a debtor or alleged debtor by publishing or posting any list of debtors, except for the publication of “stop lists” to point-of-sale locations where credit is extended, or by advertising for sale any claim to enforce payment thereof or in any other manner other than through proper legal action, process, or proceeding; and
(4) The use of any form of communication by a collection agency to the debtor or alleged debtor, which ordinarily may be seen by any other person, that displays or conveys any information about the alleged claim other than the name, address, and phone number of the collection agency.
§443B-18 Fraudulent, deceptive, or misleading repre sentations. No collection agency shall use any fraudulent, deceptive, or misleading representation or means to collect, or attempt to collect, claims or to obtain information concerning a debtor or alleged debtor, including any conduct which is described as follows:
(1) The use of any company name while engaged in the collection of claims other than the true name of the collection agency;
(2) The failure to disclose clearly:
(A) In the initial written and initial oral communication made to collect, or attempt to collect, a claim or to obtain, or attempt to obtain, information about a debtor or alleged debtor that the collection agency is attempting to collect a claim and that any information obtained will be used for that purpose; and (B) In subsequent communications that the communication is from a debt collector; provided that this paragraph shall not apply to a formal pleading made in connection with a legal action;
(3) Any false representation that the collection agency has in its possession information or something of value for the debtor or alleged debtor that is made to solicit or discover information about the debtor or alleged debtor;
(4) The failure to disclose clearly the name and full business address of the person to whom the claim has been assigned for collection or to whom the claim is owed at the time of making any demand for money;
(5) Any false representation or implication of the character, extent, or amount of a claim against a debtor or alleged debtor, or of its status in any legal proceeding;
(6) Any false representation or false impression that any collection agency is vouched for, bonded by, affiliated with, or an instrumentality, agent, or official of, this State or any agency of federal, state, or local government;
(7) The use or distribution or sale of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by a court, an official, or any other legally constituted or authorized authority, or which creates a false impression about its source, authorization, or approval;
(8) Any representation that an existing obligation of the debtor or alleged debtor may be increased by the addition of attorney’s fees, investigation fees, service fees, and any other fees or charges when in fact the fees or charges may not legally be added to the existing obligations; or
(9) Any false representation or false impression about the status or true nature of, or the services rendered by, the collection agency or its business.
[§443B-19] Unfair or unconscionable means. No collection agency shall use unfair or unconscionable means to collect or attempt to collect any claim in any of the following ways:
(1) The seeking or obtaining of any written statement or acknowledgment in any form that a debtor or alleged debtor’s obligation is one incurred for necessities of life where the original obligation was not in fact incurred for these necessities;
(2) The seeking or obtaining of any written statement or acknowledgment in any form containing an affirmation of any obligation by a debtor or alleged debtor who has been declared bankrupt, without clearly disclosing the nature and consequences of the affirmation and the fact that the debtor or alleged debtor is not legally obligated to make the affirmation;
(3) The collection of or the attempt to collect from a debtor or alleged debtor all or any part of the collection agency’s fees or charges for services rendered;
(4) The collection of or the attempt to collect any interest or other charge, fee, or expense incidental to the principal obligation unless the interest or incidental fee, charge, or expense is expressly authorized by the agreement creating the obligation and legally chargeable to the debtor or alleged debtor; or unless the interest or incidental fee, charge, or expense is expressly authorized by law; and
(5) Any communication with a debtor or alleged debtor whenever it appears that the debtor or alleged debtor is represented by an attorney and the attorney’s name and address are known.
[§443B-20] Unfair competition, unfair or deceptive acts or practices. A violation of this chapter by a collection agency shall constitute unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce for the purpose of section 480-2.
Hawaii’s published code: “http://www.hawaii.gov
537.7101 Short title.
This article shall be known and may be cited as the “Iowa Debt Collection Practices Act.”
537.7103 Prohibited practices.
1. A debt collector shall not collect or attempt to collect a debt by means of an illegal threat, coercion or attempt to coerce. The conduct described in each of the following paragraphs is an illegal threat, coercion or attempt to coerce within the meaning of this subsection:
a. The use, or express or implicit threat of use, of force, violence or other criminal means, to cause harm to a person or to property of a person.
b. The false accusation or threat to falsely accuse a person of fraud or any other crime.
c. False accusations made to a person, including a credit reporting agency, or the threat to falsely accuse, that a debtor is willfully refusing to pay a just debt. However, a failure to reply to requests for payment and a failure to negotiate disputes in good faith are deemed willful refusal.
d. The threat to sell or assign to another an obligation of the debtor with an attending representation or implication that the result of the sale or assignment will be to subject the debtor to harsh, vindictive or abusive collection attempts.
e. The false threat that nonpayment of a debt may result in the arrest of a person or the seizure, garnishment, attachment or sale of property or wages of that person.
f. An action or threat to take an action prohibited by this chapter or any other law.
2. A debt collector shall not oppress, harass or abuse a person in connection with the collection or attempted collection of a debt of that person or another person. The following conduct is oppressive, harassing or abusive within the meaning of this subsection:
a. The use of profane or obscene language or language that is intended to abuse the hearer or reader and which by its utterance would tend to incite an immediate breach of the peace.
b. The placement of telephone calls to the debtor without disclosure of the name of the business or company the debt collector represents.
c. Causing expense to a person in the form of long distance telephone tolls, telegram fees or other charges incurred by a medium of communication by attempting to deceive or mislead persons as to the true purpose of the notice, letter, message or communication.
d. Causing a telephone to ring or engaging a person in telephone conversation repeatedly or continuously or at unusual hours or times known to be inconvenient, with intent to annoy, harass or threaten a person.
3. A debt collector shall not disseminate information relating to a debt or debtor as follows:
a. The communication or threat to communicate or imply the fact of a debt to a person other than the debtor or a person who might reasonably be expected to be liable for the debt, except with the written permission of the debtor given after default. For the purposes of this paragraph, the use of language on envelopes indicating that the communication relates to the collection of a debt is a communication of the debt. However, this paragraph does not prohibit a debt collector from any of the following:
(1) Notifying a debtor of the fact that the debt collector may report a debt to a credit bureau or engage an agent or an attorney for the purpose of collecting the debt.
(2) Reporting a debt to a credit reporting agency or any other person reasonably believed to have a legitimate business need for the information.
(3) Engaging an agent or attorney for the purpose of collecting a debt.
(4) Attempting to locate a debtor whom the debt collector has reasonable grounds to believe has moved from the debtor’s residence, where the purpose of the communication is to trace the debtor, and the content of the communication is restricted to requesting information on the debtor’s location.
(5) Communicating with the debtor’s employer or credit union not more than once during any three-month period when the purpose of the communication is to obtain an employer’s or credit union’s debt counseling services for the debtor. In the event no response is received by the debt collector from a communication to the debtor’s employer or credit union the debt collector may make one inquiry as to whether the communication was received. In addition a debt collector may respond to any communications by a debtor’s employer or credit union.
(6) Communicating with the debtor’s employer once during any one-month period, if the purpose of the communication is to verify with an employer the fact of the debtor’s employment and if the debt collector does not disclose, except as permitted in subparagraph (5), information other than the fact that a debt exists. This subparagraph does not authorize a debt collector to disclose to an employer the fact that a debt is in default.
(7) Communicating the fact of the debt not more than once in any three-month period, with the parents of a minor debtor, or with any trustee of any property of the debtor, conservator of the debtor or the debtor’s property, or guardian of the debtor. In addition, a debt collector may respond to inquiry from a parent, trustee, conservator or guardian.
(8) Communicating with the debtor’s spouse with the consent of the debtor, or responding to inquiry from the debtor’s spouse.
b. The disclosure, publication, or communication of information relating to a person’s indebtedness to another person, by publishing or posting a list of indebted persons, commonly known as “deadbeat lists”, or by advertising for sale a claim to enforce payment of a debt when the advertisement names the debtor.
c. The use of a form of communication to the debtor, except a telegram, an original notice or other court process, or an envelope displaying only the name and address of a debtor and the return address of the debt collector, intended or so designed as to display or convey information about the debt to another person other than the name, address, and phone number of the debt collector.
4. A debt collector shall not use a fraudulent, deceptive, or misleading representation or means to collect or attempt to collect a debt or to obtain information concerning debtors. The following conduct is fraudulent, deceptive, or misleading within the meaning of this subsection:
a. The use of a business, company or organization name while engaged in the collection of debts, other than the true name of the debt collector’s business, company, or organization or the name of the business or company the debt collector represents.
b. The failure to disclose in the initial written communication with the debtor and, in addition, if the initial communication with the debtor is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph does not apply to either of the following:
(1) A formal pleading made in connection with a legal action.
(2) Communications issued directly by a state bank as defined in section 524.103, a state bank chartered under the laws of any other state, a national banking association, a trust company, a federally chartered savings and loan association or savings bank, an out-of-state chartered savings and loan association or savings bank, a financial institution chartered by the federal home loan bank board, an association incorporated or authorized to do business under chapter 534, a state or federally chartered credit union, or a company or association organized or authorized to do business under chapter 515, 518, 518A, or 520, or an officer, employee, or agent of such company or association, provided the communication does not deceptively conceal its origin or its purpose.
c. A false representation that the debt collector has information in the debt collector’s possession or something of value for the debtor, which is made to solicit or discover information about the debtor.
d. The failure to clearly disclose the name and full business address of the person to whom the claim has been assigned at the time of making a demand for money.
e. An intentional misrepresentation, or a representation which tends to create a false impression of the character, extent or amount of a debt, or of its status in a legal proceeding.
f. A false representation, or a representation which tends to create a false impression, that a debt collector is vouched for, bonded by, affiliated with, or an instrumentality, agency or official of the state or an agency of federal, state or local government.
g. The use or distribution or sale of a written communication which simulates or is falsely represented to be a document authorized, issued or approved by a court, an official or other legally constituted or authorized authority, or which tends to create a false impression about its source, authorization or approval.
h. A representation that an existing obligation of the debtor may be increased by the addition of attorney’s fees, investigation fees, service fees or other fees or charges, when in fact such fees or charges may not legally be added to the existing obligation.
i. A false representation, or a representation which tends to create a false impression, about the status or true nature of, or services rendered by, the debt collector or the debt collector’s business.
5. A debt collector shall not engage in the following conduct to collect or attempt to collect a debt:
a. The seeking or obtaining of a written statement or acknowledgment in any form that specifies that a debtor’s obligation is one chargeable upon the property of either husband or wife or both, under section 597.14, when the original obligation was not in fact so chargeable.
b. The seeking or obtaining of a written statement or acknowledgment in any form containing an affirmation of an obligation which has been discharged in bankruptcy, without clearly disclosing the nature and consequences of the affirmation and the fact that the debtor is not legally obligated to make the affirmation. However, this subsection does not prohibit the accepting of promises to pay that are voluntarily written and offered by a bankrupt debtor.
c. The collection of or the attempt to collect from the debtor a part or all of the debt collector’s fee for services rendered, unless both of the following are applicable:
(1) The fee is reasonably related to the actions taken by the debt collector.
(2) The debt collector is legally entitled to collect the fee from the debtor.
d. The collection of or the attempt to collect interest or other charge, fee or expense incidental to the principal obligation unless the interest or incidental charge, fee, or expense is expressly authorized by the agreement creating the obligation and is legally chargeable to the debtor, or is otherwise legally chargeable.
e. A communication with a debtor when the debt collector knows that the debtor is represented by an attorney and the attorney’s name and address are known, or could be easily ascertained, unless the attorney fails to answer correspondence, return phone calls or discuss the obligation in question, within a reasonable time, or prior approval is obtained from the debtor’s attorney or when the communication is a response in the ordinary course of business to the debtor’s inquiry.
6. A debt collector shall not use or distribute, sell or prepare for use, a written communication that violates or fails to conform to United States postal laws and regulations.
State Of Iowa Website: http://www.legis.state.ia.us
http://www.kslegislature.org/cgi-bin/statutes/index.cgi
COMMERCIAL TITLE 14. MISCELLANEOUS CONSUMER PROTECTION PROVISIONS
SUBTITLE 2. CONSUMER DEBT COLLECTION
§ 14-201. Definitions.
(a) In general.- In this subtitle the following words have the meanings indicated.
(b) Collector.- “Collector” means a person collecting or attempting to collect an alleged debt arising out of a consumer transaction.
(c) Consumer transaction.- “Consumer transaction” means any transaction involving a person seeking or acquiring real or personal property, services, money, or credit for personal, family, or household purposes.
(d) Person.- “Person” includes an individual, corporation, business trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.
§ 14-202. Certain acts prohibited.
In collecting or attempting to collect an alleged debt a collector may not:
(1) Use or threaten force or violence;
(2) Threaten criminal prosecution, unless the transaction involved the violation of a criminal statute;
(3) Disclose or threaten to disclose information which affects the debtor’s reputation for credit worthiness with knowledge that the information is false;
(4) Except as permitted by statute, contact a person’s employer with respect to a delinquent indebtedness before obtaining final judgment against the debtor;
(5) Except as permitted by statute, disclose or threaten to disclose to a person other than the debtor or his spouse or, if the debtor is a minor, his parent, information which affects the debtor’s reputation, whether or not for credit worthiness, with knowledge that the other person does not have a legitimate business need for the information;
(6) Communicate with the debtor or a person related to him with the frequency, at the unusual hours, or in any other manner as reasonably can be expected to abuse or harass the debtor;
(7) Use obscene or grossly abusive language in communicating with the debtor or a person related to him;
(8) Claim, attempt, or threaten to enforce a right with knowledge that the right does not exist; or
(9) Use a communication which simulates legal or judicial process or gives the appearance of being authorized, issued, or approved by a government, governmental agency, or lawyer when it is not.
§ 14-204. Short title.
This subtitle may be cited as the Maryland Consumer Debt Collection Act.
State of Maryland Website: http://mlis.state.md.us/
REGULATION OF COLLECTION PRACTICES
Act 70 of 1981
445.251 Definitions.
Sec. 1. As used in this act:
(a) “Claim” or “debt” means an obligation or alleged obligation for the payment of money or thing of value arising out of an expressed or implied agreement or contract for a purchase made primarily for personal, family, or household purposes.
(b) “Collection agency” means a person directly or indirectly engaged in soliciting a claim for collection or collecting or attempting to collect a claim owed or due or asserted to be owed or due another, or repossessing or attempting to repossess a thing of value owed or due or asserted to be owed or due another person, arising out of an expressed or implied agreement. Collection agency includes a person representing himself or herself as a collection or repossession agency or a person performing the activities of a collection agency, on behalf of another, which activities are regulated by Act No. 299 of the Public Acts of 1980, as amended, being sections 339.101 to 339.2601 of the Michigan Compiled Laws. Collection agency includes a person who furnishes or attempts to furnish a form or a written demand service represented to be a collection or repossession technique, device, or system to be used t o collect or repossess claims, if the form contains the name of a person other than the creditor in a manner indicating that a request or demand for payment is being made by a person other than the creditor even though the form directs the debtor to make payment directly to the creditor rather than to the other person whose name appears on the form. Collection agency includes a person who uses a fictitious name or the name of another in the collection or repossession of claims to convey to the debtor that a third person is collecting or repossessing or has been employed to collect or repossess the claim.
(c) “Communicate” means the conveying of information regarding a debt directly or indirectly to a person through any medium.
(d) “Consumer” or “debtor” means a natural person obligated or allegedly obligated to pay a debt.
(e) “Creditor” or “principal” means a person who offers or extends credit creating a debt or a person to whom a debt is owed or due or asserted to be owed or due. Creditor or principal does not include a person who receives an assignment or transfer or a debt solely for the purpose of facilitating collection of the debt for the assignor or transferor. In those instances, the assignor or transferor of the debt shall continue to be considered the creditor or the principal for purposes of this act.
(f) “Person” means an individual, sole proprietorship, partnership, association, or corporation.
(g) “Regulated person” means a person whose collection activities are confined and are directly related to the operation of a business other than that of a collection agency including the following:
(i) A regular employee when collecting accounts for 1 employer if the collection efforts are carried on in the name of the employer.
(ii) A state or federally chartered bank when collecting its own claim.
(iii) A trust company when collecting its own claim.
(iv) A state or federally chartered savings and loan association when collecting its own claim.
(v) A state or federally chartered credit union when collecting its own claim.
(vi) A licensee under Act No. 21 of the Public Acts of 1939, as amended, being sections 493.1 to 493.26 of the Michigan Compiled Laws.
(vii) A business licensed by the state under a regulatory act by which collection activity is regulated.
(viii) An abstract company doing an escrow business.
(ix) A licensed real estate broker or salesperson if the claim being handled by the broker or salesperson is related to or in connection with the broker or salesperson’s real estate business.
(x) A public officer or a person acting under court order.
(xi) An attorney handling claims and collections on behalf of a client and in the attorney’s own name.
445.252 Prohibited acts.
Sec. 2. A regulated person shall not commit 1 or more of the following acts:
(a) Communicating with a debtor in a misleading or deceptive manner, such as using the stationery of an attorney or credit bureau unless the regulated person is an attorney or is a credit bureau and it is disclosed that it is the collection department of the credit bureau.
(b) Using forms or instruments which simulate the appearance of judicial process.
(c) Using seals or printed forms of a government agency or instrumentality.
(d) Using forms that may otherwise induce the belief that they have judicial or official sanction.
(e) Making an inaccurate, misleading, untrue, or deceptive statement or claim in a communication to collect a debt or concealing or not revealing the purpose of a communication when it is made in connection with collecting a debt.
(f) Misrepresenting in a communication with a debtor 1 or more of the following:
(i) The legal status of a legal action being taken or threatened.
(ii) The legal rights of the creditor or debtor.
(iii) That the nonpayment of a debt will result in the debtor’s arrest or imprisonment, or the seizure, garnishment, attachment, or sale of the debtor’s property.
(iv) That accounts have been turned over to innocent purchasers for value.
(g) Communicating with a debtor without accurately disclosing the caller’s identity or cause expenses to the debtor for a long distance telephone call, telegram, or other charge.
(h) Communicating with a debtor, except through billing procedure when the debtor is actively represented by an attorney, the attorney’s name and address are known, and the attorney has been contacted in writing by the credit grantor or the credit grantor’s representative or agent, unless the attorney representing the debtor fails to answer written communication or fails to discuss the claim on its merits within 30 days after receipt of the written communication.
(i) Communicating information relating to a debtor’s indebtedness to an employer or an employer’s agent unless the communication is specifically authorized in writing by t he debtor subsequent to the forwarding of the claim for collection, the communication is in response to an inquiry initiated by the debtor’s employer or the employer’s agent, or the communication is for the purpose of acquiring location information about the debtor.
(j) Using or employing, in connection with collection of a claim, a person acting as a peace or law enforcement officer or any other officer authorized to serve legal papers.
(k) Using or threatening to use physical violence in connection with collection of a claim.
(l) Publishing, causing to be published, or threatening to publish lists of debtors, except for credit reporting purposes, when in response to a specific inquiry from a prospective credit grantor about a debtor.
(m) Using a shame card, shame automobile, or otherwise bring to public notice that the consumer is a debtor, except with respect to a legal proceeding which is instituted.
(n) Using a harassing, oppressive, or abusive method to collect a debt, including causing a telephone to ring or engaging a person in telephone conversation repeatedly, continuously, or at unusual times or places which are known to be inconvenient to the debtor. All communications shall be made from 8 a.m. to 9 p.m. unless the debtor expressly agrees in writing to communications at another time. All telephone communications made from 9 p.m. to 8 a.m. shall be presumed to be made at an inconvenient time in the absence of facts to the contrary.
(o) Using profane or obscene language.
(p) Using a method contrary to a postal law or regulation to collect an account.
(q) Failing to implement a procedure designed to prevent a violation by an employee.
(r) Communicating with a consumer regarding a debt by post card.
(s) Employing a person required to be licensed under article 9 of Act No. 299 of the Public Acts of 1980, being sections 339.901 to 339.916 of the Michigan Compiled Laws, to collect a claim unless that person is licensed under article 9 of Act No. 299 of the Public Acts of 1980.
445.253 Cease and desist order; hearing; failure to comply with order; action in circuit court; fine.
Sec. 3.
(1) The attorney general may order a regulated person to cease and desist from violating this act.
(2) A regulated person ordered to cease and desist is entitled to a hearing before the appropriate officer as determined by the attorney general if he or she files a written request within 30 days after the effective date of the order.
(3) If a regulated person fails to comply with a cease and desist order issued pursuant to this act, the attorney general may commence an action in the circuit court for Ingham county or in a circuit court for a county where the person is doing business, to enjoin violations of the cease and desist order or to seek enforcement of a previously issued order. The court may impose a fine or not more than $500.00 for each violation of the cease and desist order.
445.256 Wilful violation of act or engaging in recurring course of wilful conduct in violation of act; penalties.
Sec. 6.
(1) In an action brought under this act, if the court finds that a regulated person has wilfully violated this act, the attorney general, upon petition to the court, may recover, on behalf of the state, a civil fine not exceeding $500.00 per violation.
(2) A regulated person engaging in a recurring course of willful conduct in violation of this act shall be fined not more than $5,000.00 for the first offense, and not more than $10,000.00, or imprisoned for not more than 1 year, or both, for a second or subsequent offense.
445.257 Action for damages or equitable relief; amount of recovery; civil fine; attorney’s fees and court costs.
Sec. 7.
(1) A person who suffers injury, loss, or damage, or from whom money was collected by the use of a method, act, or practice in violation of this act may bring an action for damages or other equitable relief.
(2) In an action brought pursuant to subsection (1), if the court finds for the petitioner, recovery shall be in the amount of actual damages or $50.00, whichever is greater. If the court finds that the method, act, or practice was a willful violation, the court may assess a civil fine of not less than 3 times the actual damages, or $150.00, whichever is greater, and shall award reasonable attorney’s fees and court costs incurred in connection with the action.
445.258 Communications with person other than debtor for purpose of acquiring location information; required statements.
Sec. 8.
(1) A regulated person communicating with any person other than the debtor, for the purpose of acquiring location information about the debtor, shall state all of the following:
(a) The name of the individual seeking the location information.
(b) Whether the purpose of the communication is for confirmation or correction of location information about the debtor.
(2) For purposes of this act, location information shall consist only of a debtor’s place of abode and place of employment and the telephone number at each place.
Website: http://www.michiganlegislature.org
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Sections 45-601 to 45-622 shall be known and may be cited as the Collection Agency Act.
45.601. No person, firm, corporation, or association shall conduct or operate a collection agency or do a collection agency business as defined in the act until he, she, or it has secured a license as provided in the act. Any person, firm, corporation, or association conducting or operating such a collection agency or doing such a collection agency business without a license shall be guilty of a Class III misdemeanor for each day that such unlawful business is conducted. Any officer or agent of a firm, corporation, or association who personally participates in any violation of the act shall be guilty of a Class III misdemeanor. Nothing contained in this section shall be construed to require a regular employee of a collection agency duly licensed as such in this state to procure a collection agency license. Nothing in the act shall be construed to prohibit a person, firm, corporation, or association regulated as a collection agency in another state and residing in another state from communicating with a debtor in this state.
45-602 Terms, defined. For purposes of the Collection Agency Act:
(1) Board shall mean the Collection Agency Licensing Board;
(2) Collection agency shall mean and include:
(a) All persons, firms, corporations, and associationsdirectly or indirectly engaged in soliciting, from more than one person, firm, corporation, or association, claims of any kind owed or due or asserted to be owed or due such solicited person, firm, corporation, or association, and all persons, firms, corporations, and associations directly or indirectly engaged in asserting, enforcing, or prosecuting such claims;
(b) Any person, firm, corporation, or association which, in attempting to collect or in collecting his, her, or its own accounts or claims, uses a fictitious name or any name other than his, her, or its own name which would indicate to the debtor that a third person is collecting or attempting to collect such account or claim; and
(c) Any person, firm, corporation, or association which attempts to or does give away or sell to any person, firm, corporation, or association, other than one licensed under the act, any system or series of letters or forms for use in the collection of accounts or claims which assert or indicate, directly or indirectly, that the claim or account is being asserted or collected by any other person, firm, corporation, or association other than the creditor or owner of the claim or demand; and
(3) Collection agency shall not mean or include (a) regular employees of a single creditor, (b) banks, (c) trust companies, (d) savings and loan associations, (e) building and loan associations, (f) abstract companies doing an escrow business, (g) duly licensed real estate brokers and agents when the claims or accounts being handled by such broker or agent are related to or are in connection with such brokers’ or agents’ regular real estate business,
(h) express and telegraph companies subject to public regulation and supervision,
(i) attorneys at law handling claims and collections in their own names and not operating a collection agency under the management of a layperson, (j) any person, firm, corporation, or association handling claims, accounts, or collections under an order or orders of any court, or
(k) a person, firm, corporation, or association which, for valuable consideration, purchases accounts, claims, or demands of another and then, in such purchaser’s own name, proceeds to assert or collect such accounts, claims, or demands.
45-603 Collection Agency Licensing Board; created; members; term; expenses; employees; Secretary of State; duties.
(1) There is hereby created the Collection Agency Licensing Board which shall consist of the Secretary of State, who shall be chairperson of the board, and four members appointed by the Governor. Three of the members appointed by the Governor shall be licensees actively engaged in the collection business in this state, one of whom shall reside in each of the state’s three congressional districts. The remaining member shall be appointed at large as a representative of the public. Such person shall not be a licensee actively engaged in the collection business in this state. (2) The term of office of each appointed member shall be for four years, except that of the members of the first board appointed under this section, two shall be appointed for a term of two years. Before a member’s term expires, the Governor shall appoint a successor to take office on the expiration of the member’s term. A member shall continue to serve after the expiration of his or her term until a successor is appointed and qualified. A vacancy in the office of a member shall be filled by appointment for the unexpired term.
(3) The members of the board shall be reimbursed for their actual and necessary expenses as provided in sections 81-1174 to 81-1177.
(4) The board may employ such persons as may be necessary to carry out the Collection Agency Act, fix the salaries of such employees, and make such other expenditures as are necessary to properly carry out the act, except that all remuneration, expenses, salaries, and expenditures provided for in the act shall be paid out of the Nebraska Collection Agency Fund.
(5) The Secretary of State shall keep a record of all the proceedings, transactions, communications, and official acts performed pursuant to the act and perform such other duties as may be necessary to carry out the intent and purpose of the act.
Website: http://statutes.unicam.state.ne.us
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18A. Collection agencies.
61-18A-3. Administration and enforcement. The administration and enforcement of the Collection Agency Regulatory Act [61-18A-1 to 61-18A-33 NMSA 1978] shall be vested in the office of the director as hereinafter set forth.
A. The director shall investigate violations or alleged violations of the Collection Agency Regulatory Act by persons engaged in business as collection agencies or repossessors who fail to obtain licenses.
B. The director may examine the business and the books, accounts, records and files used therein by a collection agency licensee and for such purpose the director shall have free access to the offices, places of business, books, accounts, records, papers, files, safes and vaults of all licensees and other persons engaging or attempting to engage in business as a collection agency.
C. Any examination reports or other documents or information developed in administration of this section are confidential and not subject to subpoena.
61-18A-5. Unlawful to conduct collection agency or engage in the business of a repossessor without license.
A. No person shall conduct within this state a collection agency, act as a collection agency manager or engage within the state in the business of collecting claims for others or of soliciting the right to collect or receive payment from another of any claim or advertise or solicit either in print, by letter, in person or otherwise, the right to collect or receive payment for another of any claim or seek to make collection or obtain payment of any claim on behalf of another without having first applied for and obtained the licenses required by the Collection Agency Regulatory Act [61-18A-1 to 61-18A-33 NMSA 1978].
B. No person shall conduct within this state the business of a repossessor without having first applied for and obtained a repossessor’s license.
C. No person shall be considered to be engaged in collection activity within this state if that person’s activities regarding this state are limited to collecting debts not incurred in New Mexico from debtors located in this state by means of interstate communications, including telephone, mail or facsimile transmission, from the person’s location in another state.
Note: New Mexico’s Collection Agency Regulatory Act [61-18A-1 to 61-18A-33 NMSA 1978] does not include a prohibited practices section. Statutes 1-33 deal mostly with compliance issues and therefore, were omitted.
Read entire statute at: http://www.conwaygreene.com/nmsu/
General Business Law, Sec. 601, Article 29-H. DEBT COLLECTION PROCEDURES
§ 600. Definitions.
As used in this article, unless the context or subject matter otherwise requires: 1. “Consumer claim” means any obligation of a natural person for the payment of money or its equivalent which is or is alleged to be in default and which arises out of a transaction wherein credit has been offered or extended to a natural person, and the money, property or service which was the subject of the transaction was primarily for personal, family or household purposes. The term includes an obligation of a natural person who is a co-maker, endorser, guarantor or surety as well as the natural person to whom such credit was originally extended.
2. “Debtor” means any natural person who owes or who is asserted to owe a consumer claim.
3. “Principal creditor” means any person, firm, corporation or organization to whom a consumer claim is owed, due or asserted to be due or owed, or any assignee for value of said person, firm, corporation or organization.
§ 601. Prohibited practices.
No principal creditor, as defined by this article, or his agent shall:
1. Simulate in any manner a law enforcement officer, or a representative of any governmental agency of the state of New York or any of its political subdivisions; or
2. Knowingly collect, attempt to collect, or assert a right to any collection fee, attorney’s fee, court cost or expense unless such changes are justly due and legally chargeable against the debtor; or
3. Disclose or threaten to disclose information affecting the debtor’s reputation for credit worthiness with knowledge or reason to know that the information is false; or
4. Communicate or threaten to communicate the nature of a consumer claim to the debtor’s employer prior to obtaining final judgment against the debtor. The provisions of this subdivision shall not prohibit a principal creditor from communicating with the debtor’s employer to execute a wage assignment agreement if the debtor has consented to such an agreement; or
5. Disclose or threaten to disclose information concerning the existence of a debt known to be disputed by the debtor without disclosing that fact; or
6. Communicate with the debtor or any member of his family or household with such frequency or at such unusual hours or in such a manner as can reasonably be expected to abuse or harass the debtor; or
7. Threaten any action which the principal creditor in the usual course of his business does not in fact take; or
8. Claim, or attempt or threaten to enforce a right with knowledge or reason to know that the right does not exist; or
9. Use a communication which simulates in any manner legal or judicial process or which gives the appearance of being authorized, issued or approved by a government, governmental agency, or attorney at law when it is not.
§ 602. Violations and penalties.
1. Except as otherwise provided by law, any person who shall violate the terms of this article shall be guilty of a misdemeanor, and each such violation shall be deemed a separate offense.
2. The attorney general or the district attorney of any county may bring an action in the name of the people of the state to restrain or prevent any violation of this article or any continuance of any such violation.
§ 603. Severability.
If any provision of this article or the application thereof to any person or circumstances is held invalid the invalidity thereof shall not affect other provisions or applications of the article which can be given effect without the invalid provision or application, and to this and the provisions of this article are severable.
Website : http://assembly.state.ny.us/leg
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Title XIII
§ 1319.12. Collection agency may take assignments of debts and bring action in its own name.
(A) (1) As used in this section, “collection agency” means any person who, for compensation, contingent or otherwise, or for other valuable consideration, offers services to collect an alleged debt asserted to be owed to another.
(2) “Collection agency” does not mean a person whose collection activities are confined to and directly related to the operation of another business, including, but not limited to, the following: (a) Any bank, including the trust department of a bank, trust company, savings and loan association, savings bank, credit union, or fiduciary as defined in section 1339.03 of the Revised Code, except those that own or operate a collection agency; (b) Any real estate broker or real estate salesperson, as defined in section 4735.01 of the Revised Code; (c) Any retail seller collecting its own accounts; (d) Any insurance company authorized to do business in this state under Title XXXIX [39] of the Revised Code or a health insuring corporation authorized to operate in this state under Chapter 1751. of the Revised Code; (e) Any public officer or judicial officer acting under order of a court; (f) Any licensee as defined either in section 1321.01 or 1321.71 of the Revised Code, or any registrant as defined in section 1321.51 of the Revised Code; (g) Any public utility; (h) Any person registered to sell interment rights under section 4767.031 [4767.03.1] of the Revised Code.
(B) A collection agency with a place of business in this state may take assignment of another person’s accounts, bills, or other evidences of indebtedness in its own name for the purpose of billing, collecting, or filing suit in its own name as the real party in interest.
(C) No collection agency shall commence litigation for the collection of an assigned account, bill, or other evidence of indebtedness unless it has taken the assignment in accordance with all of the following requirements:
(1) The assignment was voluntary, properly executed, and acknowledged by the person transferring title to the collection agency.
(2) The collection agency did not require the assignment as a condition to listing the account, bill, or other evidence of indebtedness with the collection agency for collection.
(3) The assignment was manifested by a written agreement separate from and in addition to any document intended for the purpose of listing the account, bill, or other evidence of indebtedness with the collection agency. The written agreement shall state the effective date of the assignment and the consideration paid or given, if any, for the assignment, and shall expressly authorize the collection agency to refer the assigned account, bill, or other evidence of indebtedness to an attorney admitted to the practice of law in this state for the commencement of litigation. The written agreement also shall disclose that the collection agency may consolidate, for purposes of filing an action, the assigned account, bill, or other evidence of indebtedness with those of other creditors against an individual debtor or co-debtors.
(4) Upon the effective date of the assignment to the collection agency, the creditor’s account maintained by the collection agency in connection with the assigned account, bill, or other evidence of indebtedness was canceled.
(D) A collection agency shall commence litigation for the collection of an assigned account, bill, or other evidence of indebtedness in a court of competent jurisdiction located in the county in which the debtor resides, or in the case of co-debtors, a county in which at least one of the co-debtors resides.
(E) No collection agency shall commence any litigation authorized by this section unless the agency appears by an attorney admitted to the practice of law in this state.
(F) This section does not affect the powers and duties of any person described in division (A)(2) of this section.
(G) Nothing in this section relieves a collection agency from complying with the “Fair Debt Collection Practices Act,” 91 Stat. 874 (1977), 15 U.S.C. 1692, as amended, or deprives any debtor of the right to assert defenses as provided in section 1317.031 [1317.03.1] of the Revised Code and 16 C.F.R. 433, as amended.
(H) For purposes of filing an action, a collection agency that has taken an assignment or assignments pursuant to this section may consolidate the assigned accounts, bills, or other evidences of indebtedness of one or more creditors against an individual debtor or co-debtors. Each separate assigned account, bill, or evidence of indebtedness must be separately identified and pled in any consolidated action authorized by this section. If a debtor or co-debtor raises a good faith dispute concerning any account, bill, or other evidence of indebtedness, the court shall separate each disputed account, bill, or other evidence of indebtedness from the action and hear the disputed account, bill, or other evidence of indebtedness on its own merits in a separate action. The court shall charge the filing fee of the separate action to the losing party.
State of Ohio Legislative Website: http://www.legislature.state.oh.us/laws.cfm
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Pennsylvania is the only state that does not publish its code online. You might be able to locate the code at your local library. The statute affecting debt collection is Title 73, Chapter 42 (73 P.S. § 2270.1) The Pennsylvania Attorney General’s office does publish an online debt collection guide that summarizes state law. It can be found at http://www.attorneygeneral.gov/consumers.aspx?id=244
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Title 62, Chapter 20, Sections 101-127 Collection Services.
62-20-101. Short title. This chapter shall be known and may be cited as the “Tennessee Collection Service Act.”
62-20-102. Chapter definitions. As used in this chapter, unless the context otherwise requires:
(1) “Board” means the Tennessee collection service board; (2) “Client” means any person who retains the services of a collection service, and for such services directly provides the fee, commission or other compensation;
(3) “Collection service” means any person who, directly or indirectly, for a fee, commission, or other compensation, offers to a client or prospective client the service of collecting, or purchasing for collection, accounts, bills, notes or other indebtedness due such client for various debtors. “Collection service” includes, but is not limited to:
(A) Any deputy sheriff, constable or other individual who, in the course of that person’s duties, accepts any compensation other than that fixed by statute in connection with the collection of an account;
(B) Any person who, in the process of collecting that person’s own accounts, uses or causes to be used any fictitious name which would indicate to the debtor that a third party is handling the accounts;
(C) Any person who offers for sale, gives away, or uses any letter or form designed for use in the collection of accounts which deceives the receiver into believing that an account is in the hands of a third party, even though the letter or form may instruct the debtor to pay directly to the debtor’s creditor; and
(D) Any person who engages in the solicitation of claims in this state for purchase or collection;
(4) “Collection service license” means a license granted to a collection service;
(5) “Financially responsible” means capable, as demonstrated to the board’s satisfaction, of sound financial management and fiscal discretion. The board may deem to be not financially responsible any person who:
(A) Submits a balance sheet reflecting liabilities in excess of assets;
(B) Is unable to pay debts as they mature;
(C) Submits materially inaccurate financial information; or
(D) Issues a check to a client without sufficient funds for the payment of such check in full;
(6) “Location manager” means an individual who is employed full time at a location of a collection service and designated to be in active and responsible charge of the business of a collection service at the location at which the individual is employed;
(7) “Location manager license” means a license granted to a location manager, pursuant to § 62-20-108.
(8) “Person” means an individual, firm, corporation, association or other legal entity; and
(9) “Solicitor” means any individual who is employed by, or under contract with, a collection service to solicit accounts or sell collection service forms or systems on its behalf.
62-20-103. Exemptions. (a) The provisions of this chapter do not apply to: (1) Any person handling claims, accounts or collections under order of any court; (2) Attorneys at law; or (3) Any person engaged in the collection of indebtedness incurred in the normal course of business, or the business of a parent, subsidiary, or affiliated firm or corporation; however, no person who is or represents such person to be a collection service is exempt from this chapter. (b) Nothing contained within this chapter shall be construed to require an individual or business entity, which collects only the individual’s or its own unpaid accounts, to submit to licensure or regulation by the collection service board.
62-20-104 to 127 are not reprinted here because they do not include a prohibited practices section and are only concerned with general requirements debt collection agencies must meet to operate in Tennessee.
Website: http://www.tennesseeanytime.org/laws/laws.html
FINANCE CODE: CHAPTER 392. DEBT COLLECTION
SUBCHAPTER A. GENERAL PROVISIONS
§ 392.001. DEFINITIONS. In this chapter:
(1) “Consumer” means an individual who has a consumer debt.
(2) “Consumer debt” means an obligation, or an alleged obligation, primarily for personal, family, or household purposes and arising from a transaction or alleged transaction.
(3) “Creditor” means a party, other than a consumer, to a transaction or alleged transaction involving one or more consumers.
(4) “Credit bureau” means a person who, for compensation, gathers, records, and disseminates information relating to the creditworthiness, financial responsibility, and paying habits of, and similar information regarding, a person for the purpose of furnishing that information to another person.
(5) “Debt collection” means an action, conduct, or practice in collecting, or in soliciting for collection, consumer debts that are due or alleged to be due a creditor.
(6) “Debt collector” means a person who directly or indirectly engages in debt collection and includes a person who sells or offers to sell forms represented to be a collection system, device, or scheme intended to be used to collect consumer debts.
(7) “Third-party debt collector” means a debt collector, as defined by 15 U.S.C. Section 1692a(6), but does not include an attorney collecting a debt as an attorney on behalf of and in the name of a client unless the attorney has nonattorney employees who: (A) are regularly engaged to solicit debts for collection; or (B) regularly make contact with debtors for the purpose of collection or adjustment of debts.
SUBCHAPTER B. SURETY BOND
§ 392.101. BOND REQUIREMENT. (a) A third-party debt collector or credit bureau may not engage in debt collection unless the third-party debt collector or credit bureau has obtained a surety bond issued by a surety company authorized to do business in this state as prescribed by this section. A copy of the bond must be filed with the secretary of state. (b) The bond must be in favor of: (1)any person who is damaged by a violation of this chapter; and (2)this state for the benefit of any person who is damaged by a violation of this chapter.
(c) The bond must be in the amount of $10,000.
§ 392.102. CLAIM AGAINST BOND. A person who claims against a bond for a violation of this chapter may maintain an action against the third-party debt collector or credit bureau and against the surety. The aggregate liability of the surety to all persons damaged by a violation of this chapter may not exceed the amount of the bond.
SUBCHAPTER C. INFORMATION IN FILES OF CREDIT BUREAU OR DEBT COLLECTOR
§ 392.201. REPORT TO CONSUMER. Not later than the 45th day after the date of the request, a credit bureau shall provide to a person in its registry a copy of all information contained in its files concerning that person.
§ 392.202. CORRECTION OF THIRD-PARTY DEBT COLLECTOR’S OR CREDIT BUREAU’S FILES.
(a) An individual who disputes the accuracy of an item that is in a third-party debt collector’s or credit bureau’s file on the individual and that relates to a debt being collected by the third-party debt collector may notify in writing the third-party debt collector of the inaccuracy. The third-party debt collector shall make a written record of the dispute. If the third-party debt collector does not report information related to the dispute to a credit bureau, the third-party debt collector shall cease collection efforts until an investigation of the dispute described by Subsections (b)-(e)determines the accurate amount of the debt, if any. If the third-party debt collector reports information related to the dispute to a credit bureau, the reporting third-party debt collector shall initiate an investigation of the dispute described by Subsections (b)-(e) and shall cease collection efforts until the investigation determines the accurate amount of the debt, if any. This section does not affect the application of Chapter 20, Business & Commerce Code, to a third-party debt collector subject to that chapter.
(b) Not later than the 30th day after the date a notice of inaccuracy is received, a third-party debt collector who initiates an investigation shall send a written statement to the individual: (1) denying the inaccuracy; (2) admitting the inaccuracy; or (3) stating that the third-party debt collector has not had sufficient time to complete an investigation of the inaccuracy.
(c) If the third-party debt collector admits that the item is inaccurate under Subsection (b), the third-party debt collector shall: (1) not later than the fifth business day after the date of the admission, correct the item in the relevant file; and (2) immediately cease collection efforts related to the portion of the debt that was found to be inaccurate and on correction of the item send, to each person who has previously received a report from the third-party debt collector containing the inaccurate information, notice of the inaccuracy and a copy of an accurate report.
(d) If the third-party debt collector states that there has not been sufficient time to complete an investigation, the third-party debt collector shall immediately: (1)change the item in the relevant file as requested by the individual; (2)send to each person who previously received the report containing the information a notice that is equivalent to a notice under Subsection (c) and a copy of the changed report; and (3) cease collection efforts.
(e) On completion by the third-party debt collector of the investigation, the third-party debt collector shall inform the individual of the determination of whether the item is accurate or inaccurate. If the third-party debt collector determines that the information was accurate, the third-party debt collector may again report that information and resume collection efforts.
SUBCHAPTER D. PROHIBITED DEBT COLLECTION METHODS
§ 392.301. THREATS OR COERCION.
(a) In debt collection, a debt collector may not use threats, coercion, or attempts to coerce that employ any of the following practices:
(1) using or threatening to use violence or other criminal means to cause harm to a person or property of a person;
(2) accusing falsely or threatening to accuse falsely a person of fraud or any other crime;
(3) representing or threatening to represent to any person other than the consumer that a consumer is wilfully refusing to pay a nondisputed consumer debt when the debt is in dispute and the consumer has notified in writing the debt collector of the dispute;
(4) threatening to sell or assign to another the obligation of the consumer and falsely representing that the result of the sale or assignment would be that the consumer would lose a defense to the consumer debt or would be subject to illegal collection attempts;
(5) threatening that the debtor will be arrested for nonpayment of a consumer debt without proper court proceedings;
(6) threatening to file a charge, complaint, or criminal action against a debtor when the debtor has not violated a criminal law;
(7) threatening that nonpayment of a consumer debt will result in the seizure, repossession, or sale of the person’s property without proper court proceedings; or
(8) threatening to take an action prohibited by law.
(b) Subsection (a) does not prevent a debt collector from: (1) informing a debtor that the debtor may be arrested after proper court proceedings if the debtor has violated a criminal law of this state; (2) threatening to institute civil lawsuits or other judicial proceedings to collect a consumer debt; or (3) exercising or threatening to exercise a statutory or contractual right of seizure, repossession, or sale that does not require court proceedings.
§ 392.302. HARASSMENT; ABUSE.
In debt collection, a debt collector may not oppress, harass, or abuse a person by: (1) using profane or obscene language or language intended to abuse unreasonably the hearer or reader; (2) placing telephone calls without disclosing the name of the individual making the call and with the intent to annoy, harass, or threaten a person at the called number; (3) causing a person to incur a long distance telephone toll, telegram fee, or other charge by a medium of communication without first disclosing the name of the person making the communication; or (4) causing a telephone to ring repeatedly or continuously, or making repeated or continuous telephone calls, with the intent to harass a person at the called number.
§ 392.303. UNFAIR OR UNCONSCIONABLE MEANS.
(a) In debt collection, a debt collector may not use unfair or unconscionable means that employ the following practices:
(1) seeking or obtaining a written statement or acknowledgment in any form that specifies that a consumer’s obligation is one incurred for necessaries of life if the obligation was not incurred for those necessaries; or
(2) collecting or attempting to collect interest or a charge, fee, or expense incidental to the obligation unless the interest or incidental charge, fee, or expense is expressly authorized by the agreement creating the obligation or legally chargeable to the consumer.
(b) Notwithstanding Subsection (a)(2), a creditor may charge a reasonable reinstatement fee as consideration for renewal of a real property loan or contract of sale, after default, if the additional fee is included in a written contract executed at the time of renewal.
§ 392.304. FRAUDULENT, DECEPTIVE, OR MISLEADING REPRESENTATIONS.
(a) Except as otherwise provided by this section, in debt collection or obtaining information concerning a consumer, a debt collector may not use a fraudulent, deceptive, or misleading representation that employs the following practices:
(1) using a name other than the: (A) true business or professional name or the true personal or legal name of the debt collector while engaged in debt collection; or (B) name appearing on the face of the credit card while engaged in the collection of a credit card debt;
(2) failing to maintain a list of all business or professional names known to be used or formerly used by persons collecting consumer debts or attempting to collect consumer debts for the debt collector;
(3) representing falsely that the debt collector has information or something of value for the consumer in order to solicit or discover information about the consumer;
(4) failing to disclose clearly in any communication with the debtor the name of the person to whom the debt has been assigned or is owed when making a demand for money;
(5) in the case of a third-party debt collector, failing to disclose, except in a formal pleading made in connection with a legal action:
(A) that the communication is an attempt to collect a debt and that any information obtained will be used for that purpose, if the communication is the initial written or oral communication between the third-party debt collector and the debtor; or(B) that the communication is from a debt collector, if the communication is a subsequent written or oral communication between the third-party debt collector and the debtor;
(6) using a written communication that fails to indicate clearly the name of the debt collector and the debt collector’s street address or post office box and telephone number if the written notice refers to a delinquent consumer debt;
(7) using a written communication that demands a response to a place other than the debt collector’s or creditor’s street address or post office box;
(8) misrepresenting the character, extent, or amount of a consumer debt, or misrepresenting the consumer debt’s status in a judicial or governmental proceeding;
(9) representing falsely that a debt collector is vouched for, bonded by, or affiliated with, or is an instrumentality, agent, or official of, this state or an agency of federal, state, or local government;
(10) using, distributing, or selling a written communication that simulates or is represented falsely to be a document authorized, issued, or approved by a court, an official, a governmental agency, or any other governmental authority or that creates a false impression about the communication’s source, authorization, or approval;
(11) using a seal, insignia, or design that simulates that of a governmental agency;
(12) representing that a consumer debt may be increased by the addition of attorney’s fees, investigation fees, service fees, or other charges if a written contract or statute does not authorize the additional fees or charges;
(13) representing that a consumer debt will definitely be increased by the addition of attorney’s fees, investigation fees, service fees, or other charges if the award of the fees or charges is subject to judicial discretion;
(14) representing falsely the status or nature of the services rendered by the debt collector or the debt collector’s business;
(15) using a written communication that violates the United States postal laws and regulations;
(16) using a communication that purports to be from an attorney or law firm if it is not;
(17) representing that a consumer debt is being collected by an attorney if it is not;
(18) representing that a consumer debt is being collected by an independent, bona fide organization engaged in the business of collecting past due accounts when the debt is being collected by a subterfuge organization under the control and direction of the person who is owed the debt; or
(19) using any other false representation or deceptive means to collect a debt or obtain information concerning a consumer.
(b) Subsection (a)(4) does not apply to a person servicing or collecting real property first lien mortgage loans or credit card debts.
(c) Subsection (a)(6) does not require a debt collector to disclose the names and addresses of employees of the debt collector.
(d) Subsection (a)(7) does not require a response to the address of an employee of a debt collector.
(e) Subsection (a)(18) does not prohibit a creditor from owning or operating a bona fide debt collection agency.
§ 392.305. DECEPTIVE USE OF CREDIT BUREAU NAME.
A person may not use “credit bureau,” “retail merchants,” or “retail merchants association” in the person’s business or trade name unless: (1) the person is engaged in gathering, recording, and disseminating information, both favorable and unfavorable, relating to the creditworthiness, financial responsibility, and paying habits of, and similar information regarding, persons being considered for credit extension so that a prospective creditor can make a sound decision in the extension of credit; or (2) the person is a nonprofit retail trade association that: (A) consists of individual members; (B) qualifies as a bona fide business league as defined by the United States Internal Revenue Service; and (C) does not engage in the business of debt collection or credit reporting.
§ 392.306. USE OF INDEPENDENT DEBT COLLECTOR.
A creditor may not use an independent debt collector if the creditor has actual knowledge that the independent debt collector repeatedly or continuously engages in acts or practices that are prohibited by this chapter.
SUBCHAPTER E. DEFENSE, CRIMINAL PENALTY, AND CIVIL REMEDIES
§ 392.401. BONA FIDE ERROR.
A person does not violate this chapter if the action complained of resulted from a bona fide error that occurred notwithstanding the use of reasonable procedures adopted to avoid the error.
§ 392.402. CRIMINAL PENALTY.
(a) A person commits an offense if the person violates this chapter. (b) An offense under this section is a misdemeanor punishable by a fine of not less than $100 or more than $500 for each violation. (c) A misdemeanor charge under this section must be filed not later than the first anniversary of the date of the alleged violation.
§ 392.403. CIVIL REMEDIES.
(a) A person may sue for: (1) injunctive relief to prevent or restrain a violation of this chapter; and (2) actual damages sustained as a result of a violation of this chapter.
(b) A person who successfully maintains an action under Subsection (a) is entitled to attorney’s fees reasonably related to the amount of work performed and costs.
(c) On a finding by a court that an action under this section was brought in bad faith or for purposes of harassment, the court shall award the defendant attorney’s fees reasonably related to the work performed and costs.
(d) If the attorney general reasonably believes that a person is violating or is about to violate this chapter, the attorney general may bring an action in the name of this state against the person to restrain or enjoin the person from violating this chapter.
(e) A person who successfully maintains an action under this section for violation of Section 392.101, 392.202, or 392.301(a)(3) is entitled to not less than $100 for each violation of this chapter.
§ 392.404. REMEDIES UNDER OTHER LAW.
(a) A violation of this chapter is a deceptive trade practice under Subchapter E, Chapter 17, Business & Commerce Code, and is actionable under that subchapter.
(b) This chapter does not affect or alter a remedy at law or in equity otherwise available to a debtor, creditor, governmental entity, or other legal entity.
State of Texas Website: http://www.capitol.state.tx.us
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§47-16-1. Citation of article. This article may be cited as the “Collection Agency Act of 1973.”
§47-16-2. Definitions.
The following words and terms as used in this article shall be construed as follows:
(a) “Claim” means any obligation for the payment of money due or asserted to be due to another person, firm, corporation or association.
(b) “Collection agency” means and includes all persons, firms, corporations and associations: (1) Directly or indirectly engaged in the business of soliciting from or collecting for others any account, bill or indebtedness originally due or asserted to be owed or due another and all persons, firms, corporations and associations directly or indirectly engaged in asserting, enforcing or prosecuting those claims; (2) which, in attempting to collect or in collecting his or her or its own accounts or claims uses a fictitious name or names other than his or her or its own name; (3) which attempts to or does give away or sell to others any system or series of letters or forms for use in the collection of accounts or claims which assert or indicate directly or indirectly that the claims or accounts are being asserted or collected by any person, firm, corporation or association other than the creditor or owner of the claim or account; or (4) directly or indirectly engaged in the business of soliciting, or who holds himself or herself out as engaged in the business of soliciting, debts of any kind owed or due, or asserted to be owed or due, to any solicited person, firm, corporation or association for fee, commission or other compensation.
The term “collection agency” shall not mean or include: (1) Regular employees of a single creditor or of a collection agency licensed hereunder; (2) banks; (3) trust companies; (4) savings and loan associations; (5) building and loan associations; (6) industrial loan companies; (7) small loan companies; (8) abstract companies doing an escrow business; (9) duly licensed real estate brokers or agents when the claims or accounts being handled by such broker or agent are related to or in connection with such brokers’ or agents’ regular real estate business; (10) express and telegraph companies subject to public regulation and supervision; (11) attorneys-at-law handling claims and collections in their own names and not operating a collection agency under the management of a layman; (12) any person, firm, corporation or association acting under the order of any court of competent jurisdiction; or (13) any person collecting a debt owed to another person only where: (A) Both persons are related by wholly-owned, common ownership or affiliated by wholly-owned corporate control; (B) the person collecting the debt acts only on behalf of persons related as described in paragraph (A) of this subdivision; and (C) debt collection is not the principal business of the person collecting the debt.
(c) “Commissioner” means the state tax commissioner or his or her agent.
(d) “Customer” means any person, firm, corporation or association who has filed, assigned or sold any claim or chose in action with or to a collection agency for collection.
(e) “Licensee” means any person holding a business franchise registration certificate under section two, article twelve, chapter eleven of this code and under the provisions of this article.
(f) “Trust account” means a special account established by a collection agency with a banking institution in this state, wherein funds collected on behalf of a customer shall be deposited.
§47-16-3. Scope. No person, firm, corporation or association shall establish or conduct within this state a collection agency except as authorized by this article.
§47-16-4. Requirements for conduct of agency.
(a) License — No person, firm, corporation or association shall conduct within this state a collection agency without having first applied for and obtained a business franchise registration certificate pursuant to section two, article twelve, chapter eleven of this code, nor shall any person, firm, corporation or association establish or operate a collection agency or the business of a collection agency, unless such person, firm, corporation or association maintains an office within the state of West Virginia. The business franchise registration certificate shall be deemed the collection agency’s license. A license is required for each collection agency, including each principal office and all branch offices thereof.
(b) Bond — Each applicant shall file with the commissioner a continuing surety bond executed by a corporation which is licensed to transact the business of fidelity and surety insurance in the state of West Virginia to run concurrently with the registration tax period, which bond must be filed with, and approved by, said commissioner before the license herein provided may be issued. A separate bond shall be filed for each collection agency including each principal office and all branch offices thereof. Each bond shall be in the amount of five thousand dollars payable to the state of West Virginia, and conditioned that any such person will pay all damages to the state or a private person resulting from any unlawful act or action by such person or his or its agent in connection with the conduct of the business of the collection agency. This continuing bond shall be filed with the tax commissioner.
An action may be brought in any court of competent jurisdiction upon the bond by any person to whom the licensee fails to account and pay as set forth in such bond. The aggregate liability of the surety for all breaches of the condition of the bond shall not exceed the sum of such bond.
Upon entering judgment for the prevailing party in any action on the bond required by this article, the court shall include in the judgment, reasonable compensation for the services of such party’s attorney in the action.
The license of any licensee shall be void upon termination of the bond of the surety company, unless, prior to such termination, a new bond has been filed with the commissioner.
Should the license of any surety company to transact business in this state be terminated, all bonds given pursuant to this article upon which such company is surety shall thereupon be suspended, and the commissioner shall immediately notify each affected licensee of such suspension and require that a new bond be filed. This notice shall be by registered or certified mail, return receipt requested, and shall be addressed to the licensee at his or its principal place of business as shown by the commissioner’s records. The failure of any licensee to file a bond with new or additional surety within thirty days after being advised in writing by the commissioner of the necessity to do so shall be cause for the commissioner to revoke the license.
(c) Record Keeping — Each collection agency licensed to operate in this state shall keep a record of all sums collected by such agency and of all disbursements made by such agency, and shall maintain or make available all such records and all records as to customers’ funds at such agency’s principal place of business within this state. Each collection agency shall maintain records of collections for and payments to customers for a period of six years from the date of last entry therein. No collection agency, nor any employee thereof, shall intentionally make a false entry in any such collection agency record nor intentionally mutilate, destroy or otherwise dispose of any such record within the time limits provided in this section. Such records shall at all times be open for inspection by the commissioner, or his duly appointed representative.
No licensee shall commingle the money of collection agency customers with other moneys, but shall maintain a separate trust account in a bank for customers’ funds.
Each collection agency shall, within a period of thirty days after the close of each and every calendar month, pay to such agency’s customers the net proceeds due on all collections made during the preceding calendar month. When the net proceeds due the customer are less than five dollars at the end of any calendar month, the collection agency may defer for a period not to exceed ninety days the payment of said proceeds, if monthly statements are mailed or delivered to the customer.
West Virginia Legislature Website: http://www.legis.state.wv.us/WVCODE/masterfrm3Banner.cfm
Chapter 427. Consumer Transactions Debt Collection
427.101 Short title. This chapter shall be known and may be cited as Wisconsin consumer act debt collection.
427.102 Scope. This chapter applies to conduct and practices in connection with the collection of obligations arising from consumer transactions, including transactions that are primarily for an agricultural purpose.
427.103 Definitions: “claim”; “debt collection”; “debt collector”.
(1) “Claim” means any obligation or alleged obligation arising from a consumer transaction, including a transaction that is primarily for an agricultural purpose.
(2) “Debt collection” means any action, conduct or practice of soliciting claims for collection or in the collection of claims owed or due or alleged to be owed or due a merchant by a customer.
(3) “Debt collector” means any person engaging, directly or indirectly, in debt collection, and includes any person who sells, or offers to sell, forms represented to be a collection system, device or scheme, intended or calculated to be used to collect claims. The term does not include a printing company engaging in the printing and sale of forms.
427.104 Prohibited practices.
(1) In attempting to collect an alleged debt arising from a consumer credit transaction or other consumer transaction, including a transaction primarily for an agricultural purpose, where there is an agreement to defer payment, a debt collector may not:
(a) Use or threaten force or violence to cause physical harm to the customer or the customer’s dependents or property;
(b) Threaten criminal prosecution;
(c) Disclose or threaten to disclose information adversely affecting the customer’s reputation for credit worthiness with knowledge or reason to know that the information is false;
(d) Initiate or threaten to initiate communication with the customer’s employer prior to obtaining final judgment against the customer, except as permitted by statute including specifically s. 422.404, but this paragraph does not prohibit a debt collector from communicating with the customer’s employer solely to verify employment status or earnings or where an employer has an established debt counseling service or procedure;
(e) Disclose or threaten to disclose to a person other than the customer or the customer’s spouse information affecting the customer’s reputation, whether or not for credit worthiness, with knowledge or reason to know that the other person does not have a legitimate business need for the information, but this paragraph does not prohibit the disclosure to another person of information permitted to be disclosed to that person by statute;
(f) Disclose or threaten to disclose information concerning the existence of a debt known to be reasonably disputed by the customer without disclosing the fact that the customer disputes the debt;
(g) Communicate with the customer or a person related to the customer with such frequency or at such unusual hours or in such a manner as can reasonably be expected to threaten or harass the customer;
(h) Engage in other conduct which can reasonably be expected to threaten or harass the customer or a person related to the customer;
(i) Use obscene or threatening language in communicating with the customer or a person related to the customer;
(j) Claim, or attempt or threaten to enforce a right with knowledge or reason to know that the right does not exist;
(k) Use a communication which simulates legal or judicial process or which gives the appearance of being authorized, issued or approved by a government, governmental agency or attorney-at-law when it is not;
(l) Threaten action against the customer unless like action is taken in regular course or is intended with respect to the particular debt; or
(m) Engage in conduct in violation of a rule adopted by the administrator after like conduct has been restrained or enjoined by a court in a civil action by the administrator against any person pursuant to the provisions on injunctions against false, misleading, deceptive or unconscionable agreements or conduct (ss. 426.109 and 426.110).
(2) If a debt collector is not otherwise in violation of sub. (1) (j) with respect to a consumer credit transaction with a debtor, it is not a violation of this section to send a billing statement or other notice of account to, or to collect the amount due on the account from, the spouse of that debtor, if notice to the debtor’s spouse is provided under s. 766.56.
427.105 Remedies.
(1) A person injured by violation of this chapter may recover actual damages and the penalty provided in s. 425.304; but notwithstanding any other law actual damages shall include damages caused by emotional distress or mental anguish with or without accompanying physical injury proximately caused by a violation of this chapter.
(2) If a customer establishes that the customer was induced to surrender collateral (s. 425.202) by conduct of the merchant which violates this chapter, the customer shall be entitled to a determination of the right to possession of the collateral pursuant to s. 425.205 (1) (e) in any action brought under this subchapter, and if the customer prevails on such issue, in addition to any other damages under this subchapter, the customer shall be entitled to recover possession of the collateral if still in the merchant’s possession, together with actual damages for the customer’s loss of use of the collateral.
Website: http://www.legis.state.wi.us/rsb/Statutes.html
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