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H0230...........................................................by BUSINESS
DEBT COLLECTORS - Amends existing law to provide an exemption to the permit
requirements for collection agencies for any person acting as a debt
collector for another person, both of whom are related by common ownership
or affiliated by corporation control, if the person acting as a debt
collector does so only for the persons to whom related or affiliated and
if the principal business of such person is not the collection of debts.
02/14 House intro - 1st rdg - to printing
02/15 Rpt prt - to Bus
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 230
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO COLLECTION AGENCIES; AMENDING SECTION 26-2239, IDAHO CODE, TO PRO-
3 VIDE AN EXEMPTION TO THE PERMIT REQUIREMENTS FOR ANY PERSON ACTING AS A
4 DEBT COLLECTOR FOR ANOTHER PERSON, BOTH OF WHOM ARE RELATED BY COMMON OWN-
5 ERSHIP OR AFFILIATED BY CORPORATE CONTROL, IF THE PERSON ACTING AS A DEBT
6 COLLECTOR DOES SO ONLY FOR PERSONS TO WHOM HE IS SO RELATED OR AFFILIATED
7 AND IF THE PRINCIPAL BUSINESS OF SUCH PERSON IS NOT THE COLLECTION OF
8 DEBTS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 26-2239, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 26-2239. EXEMPTIONS. The provisions of this chapter shall not apply to
13 the following:
14 (1) Any attorney-at-law duly authorized to practice in this state;
15 (2) Any regulated lender as defined in section 28-41-301(37), Idaho Code,
16 nor any subsidiary, affiliate or agent of such a regulated lender to the
17 extent that the subsidiary, affiliate or agent collects for the regulated
18 lender;
19 (3) Any trust company authorized to do business in this state;
20 (4) Any federal, state or local governmental agency or instrumentality;
21 (5) Any real estate broker or real estate salesman licensed under the
22 laws of and residing within this state when engaged in the regular practice of
23 a real estate business;
24 (6) Any abstract and title companies doing an escrow business;
25 (7) Any mortgage company to the extent that such mortgage company is
26 engaged in the regular business of a mortgage company as defined in section
27 26-2802, Idaho Code;
28 (8) Any court appointed trustee, receiver or conservator;
29 (9) Any telephone corporation, as defined in subsection (10) of section
30 62-603, Idaho Code, whose initial request for payment on behalf of such tele-
31 phone corporation or on behalf of another person is made by the telephone cor-
32 poration as a part of regular telecommunications billings to its customers and
33 at a time before the account, bill, claim or other indebtedness becomes past
34 due or delinquent;
35 (10) Any person acting as a debt collector for another person, both of
36 whom are related by common ownership or affiliated by corporate control, if
37 the person acting as a debt collector does so only for persons to whom he is
38 so related or affiliated and if the principal business of such person is not
39 the collection of debts.
STATEMENT OF PURPOSE
RS 10987
This proposed legislation will add a new subsection (10) to Section
26-2239, Idaho Code, to create an exemption for affiliates of
creditors and other companies that service creditors' accounts and
do not operate or hold themselves out as third party collection
agencies. In addition, this legislation would amend Idaho's law so
that it is parallel with the federal Fair Debt Collection Practices
Act.
Current Idaho law does not include an exception for affiliates of
a creditor. The change in the current law will eliminate the
burdensome licensing, bonding and trust account requirements for
affiliated companies that do not hold themselves out as collection
agencies.
FISCAL IMPACT
The fiscal impact from exams and annual licensing fees that will
not be collected due to this proposed exemption is not expected to
exceed $1,000.
CONTACT: Pam Eaton, Idaho Retailers Association
(208) 342-0010, Ext. 2
STATEMENT OF PURPOSE/FISCAL NOTE H 230