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H0179..............................................................by BUSINESS
COLLECTION AGENCY - Amends existing law to exempt from the requirements of the
collection agency licensing law those persons who are affiliates of the
creditor.
02/06 House intro - 1st rdg - to printing
02/07 Rpt prt - to Bus
02/12 Rpt out - rec d/p - to 2nd rdg
02/13 2nd rdg - to 3rd rdg
02/17 3rd rdg - PASSED - 70-0-0
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
Jaquet, Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali,
Sayler, Schaefer(Schaefer), Shepherd, Shirley, Skippen, Smith(30),
Smith(24), Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr.
Speaker
NAYS -- None
Absent and excused -- None
Floor Sponsor - Collins
Title apvd - to Senate
02/18 Senate intro - 1st rdg - to Com/HuRes
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/11 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde,
Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
McKenzie, McWilliams, Noble, Noh, Pearce, Richardson, Schroeder,
Sorensen, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Malepeai
Title apvd - to House
03/12 To enrol
03/13 Rpt enrol - Sp signed
03/14 Pres signed
03/17 To Governor
03/21 Governor signed
Session Law Chapter 112
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 179
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO COLLECTION AGENCIES; AMENDING SECTION 26-2239, IDAHO CODE, TO
3 EXEMPT FROM LICENSING REQUIREMENTS PERSONS WHO ARE AFFILIATES OF THE CRED-
4 ITOR.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 26-2239, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 26-2239. EXEMPTIONS. The provisions of this chapter shall not apply to
9 the following:
10 (1) Any attorney-at-law duly authorized to practice in this state;
11 (2) Any regulated lender as defined in section 28-41-301(37), Idaho Code,
12 nor any subsidiary, affiliate or agent of such a regulated lender to the
13 extent that the subsidiary, affiliate or agent collects for the regulated
14 lender;
15 (3) Any trust company authorized to do business in this state;
16 (4) Any federal, state or local governmental agency or instrumentality;
17 (5) Any real estate broker or real estate salesman licensed under the
18 laws of and residing within this state when engaged in the regular practice of
19 a real estate business;
20 (6) Any abstract and title companies doing an escrow business;
21 (7) Any mortgage company to the extent that such mortgage company is
22 engaged in the regular business of a mortgage company as defined in section
23 26-2802, Idaho Code;
24 (8) Any court appointed trustee, receiver or conservator;
25 (9) Any telephone corporation, as defined in subsection (10) of section
26 62-603, Idaho Code, whose initial request for payment on behalf of such tele-
27 phone corporation or on behalf of another person is made by the telephone cor-
28 poration as a part of regular telecommunications billings to its customers and
29 at a time before the account, bill, claim or other indebtedness becomes past
30 due or delinquent;
31 (10) A person while acting as a debt collector for another person, both of
32 whom are related by common ownership or affiliated by corporate control, if
33 the person acting as a debt collector does so only for persons to whom he is
34 so related or affiliated and if the principal business of such person is not
35 the collection of debts.
STATEMENT OF PURPOSE
RS 12771
This proposed legislation would 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.
Enacted before the advent of "outsourcing" credit operations to
an affiliate, the current Idaho law does not include an
exception for affiliates of a creditor. The collection
activity of these affiliates is only incidental to the wide
range of activities related to their servicing of the account,
such as billing and remittance processing. The change to the
current law is being proposed to keep pace with the changing
business environment by appropriately eliminating the
burdensome licensing, bonding and trust account requirements
for affiliated companies that do not hold themselves out as
collection agencies.
In addition, compliance with the existing law by an affiliate
of a creditor could actually be misleading to consumers and
subject the creditor to liability. The Fair Debt Collection
Practices Act specifically prohibits a creditor from giving
the false impression that a third party is collecting its
debts. Yet, Idaho's existing law would require an affiliate
licensee to contact the debtor in the affiliate licensee's
"true" name.
FISCAL IMPACT
The fiscal impact from exams and annual licensing fees that
are credited to the finance administrative account in the
state dedicated fund is not expected to exceed $2,000 at the
maximum.
Contact: Pam Eaton
Idaho Retailers Association
208-342-0010 x2
STATEMENT OF PURPOSE/FISCAL NOTE H 17