BANKS AND BANKING
26-2227. Denial, suspension or revocation of license. (1) An application for a license may be denied or, after notice and the opportunity for a hearing, a license may be suspended or revoked by the director if he finds that facts or conditions exist which would have justified the director in refusing to grant a license had such facts or conditions been known to exist at the time the license was issued, or that the licensee or the applicant, or any officer, member, owner, manager or agent of a licensee or applicant:
(a) Has violated any provision of this act, the federal fair debt collection practices act, 15 U.S.C. 1692 et seq., as amended, or any rule or order of the director under this act;
(b) Is not legally qualified to do business in this state;
(c) Has failed to retain a natural person with three (3) years of experience related to the type of business conducted by the licensee under this act to supervise each office from which business activities are conducted under this act;
(d) Has failed, refused or neglected to pay or remit to any creditor client the agreed portion of any sum collected by the applicant or licensee on any bill, claim, account or other indebtedness entrusted to such applicant or licensee for collection;
(e) Has failed to return to a debtor an amount that was not owed on his debt;
(f) Has made a material misstatement in the application for such license or renewal;
(g) Has obtained or attempted to obtain a license or renewal by fraud or misrepresentation;
(h) Has misappropriated or converted to his own use or improperly withheld moneys collected or held for any other person, except that a collection agency licensee may convert into business funds his portion of any moneys collected on behalf of a creditor client, pursuant to a written agreement with the creditor client and in compliance with this act;
(i) Has falsely represented himself as a licensee for the purpose of soliciting for or representing any business covered in this act;
(j) Has been convicted of, or a court of competent jurisdiction has entered a withheld judgment for, a crime that is deemed relevant in accordance with section 67-9411(1), Idaho Code, including a crime involving financial wrongdoing;
(k) Has had a license substantially equivalent to a license under this act issued by another state revoked, suspended or denied; or
(l) Demonstrates a lack of fitness to engage in business activities authorized for a licensee under this act.
(2) The director may, after notice and the opportunity for a hearing, impose upon any licensee, or person required to be licensed under this act, a civil penalty of not more than five thousand dollars ($5,000) for each violation of this act.
(3) The director may, after notice and the opportunity for a hearing, impose upon a licensee, or person required to be licensed under this act, any sanction authorized by this section if the director finds that an agent of the licensee, or person required to be licensed under this act, has violated any provision of this act.
(4) The director may, in his discretion and by an order issued in accordance with chapter 52, title 67, Idaho Code, prohibit a licensee from using an individual as an agent if the individual has violated any provision of this act, or any similar statute or rule of another state.
(5) Any denial, suspension or revocation of any license issued under this act shall be governed by chapter 52, title 67, Idaho Code.
[26-2227, added 2008, ch. 347, sec. 7, p. 943; am. 2020, ch. 175, sec. 2, p. 505.]