State Regulation:
Idaho
Idaho Collection Agency Act
ID ST § 26-2223
Chapter 22. Collection Agencies
Title 26. Banks and Banking
Chapter 22. Collection Agencies
§ 26-2221. Short title
This act shall be known as the "Idaho Collection Agency
Act."
§ 26-2222. Definitions
As used in this chapter:
(1) "Agent" means any person who is compensated on a
commission basis or by salary, or both, by any permittee and
who either contacts debtors or creditors in connection with
the collection agency business of the permittee.
(2) "Business funds" means all moneys belonging to or due
the permittee in connection with the operation of a
collection agency business.
(3) "Collection agency," "collection bureau" or "collection
office" shall be a person who engages in any of the
activities enumerated in section 26-2223, Idaho Code.
(4) "Director" means the director of the department of
finance.
(5) "Creditor" means any person who transfers to a permittee
accounts due and owing for collection purposes.
(6) "Creditors' account" means all funds due and owing a
creditor within the definition of this chapter.
(7) "Net collections" means all funds that are due to
creditors from the permittee pursuant to the contract
between the permittee and creditor, or permittee and debtor
without taking into account any offset or funds due from the
creditor to the permittee, because of the creditor having
collected any part of the account due, plus all funds that
the permittee agreed to return to debtors or that were not
to be applied to debts.
(8) "Permittee" means a person who has a permit to do
business as a collection agency, or debt counselor, or
credit counselor in Idaho .
(9) "Person" means any permittee, agent, solicitor,
individual, corporation, association, copartnership, trust,
company or unincorporated organization.
(10) "Debt counselor" means any person engaged in any of the
activities enumerated in subsection (6) of section 26-2223,
Idaho Code.
(11) "Credit counselor" means any person engaged in any of
the activities enumerated in subsection (6) or (7) of
section 26-2223, Idaho Code. No credit counselor shall be
granted a permit pursuant to this chapter unless qualified
as an exempt organization under section 501(c)(3) of the
Internal Revenue Code [FN1].
[FN1] 26 U.S.C.A. § 501.
§ 26-2223. Collection agency, debt counselor, or credit
counselor permits
No person shall without complying with the terms of this
chapter and obtaining a permit from the director:
(1) Operate as a collection agency, collection bureau,
collection office, debt counselor, or credit counselor in
this state.
(2) Engage, either directly or indirectly in this state in
the business of collecting or receiving payment for others
of any account, bill, claim or other indebtedness.
(3) Solicit or advertise for the right to collect or receive
payment for another of any account, bill, claim or other
indebtedness.
(4) Sell or otherwise distribute any system or systems of
collection letters and similar printed matter where the name
of any person other than the particular creditor to whom the
debt is owed appears.
(5) Engage in any activity which indicates, directly or
indirectly, that a third party may be involved in effecting
any collections.
(6) Engage or offer to engage in the business of receiving
money from debtors for application to or payment of or
prorating of any creditor or creditors of such debtor.
(7) Engage or offer to engage in the business of providing
counseling or other services to debtors in the management of
their debts, and contracting with the debtor to effect the
adjustment, compromise, or discharge of any account, note or
other indebtedness of the debtor.
(8) Engage or offer to engage in the business of credit
repair which includes obtaining, for others, improvements in
credit records, extensions of credit for clients, or causing
the removal of documents from the credit records of a client
maintained by a credit reporting agency.
(9) Engage or offer to engage in this state, directly or
indirectly, in the business of collecting any form of
indebtedness for that person's own account if the
indebtedness was acquired from another person and if the
indebtedness was either delinquent or in default at the time
it was acquired.
§ 26-2223A. Office to be maintained in state--Designation of
responsible person
Every permittee under this chapter must maintain an office
in the state of Idaho, staffed with at least one (1) natural
person who passed the examination required in section
26-2229, Idaho Code, or is exempt from the provisions of
this chapter pursuant to section 26-2239(1), Idaho Code, at
each branch or facility. Each permittee must have a listed
Idaho telephone number and must be open to the public during
normal business hours on each business day, provided,
however, that the director may in his discretion approve a
request for opening at hours other than normal business
hours or a portion of a business day. A business day within
the meaning of this section does not include Saturdays,
Sundays, or legal holidays. Each permittee under this
chapter must designate a natural person, who need not be a
resident of the state of Idaho , to be responsible for the
business carried on at the office and who has passed the
examination for a permit required by section 26-2229, Idaho
Code. If the person designated by the permittee to be
responsible for business carried on at the office is not
normally available in the Idaho office, then the permittee's
collection activities with debtors must begin with a written
notice to each debtor setting forth a mailing address and a
toll-free telephone number whereby a debtor may contact the
designated responsible person during normal business hours.
§ 26-2224. Form of application
Every applicant for such permit shall file in the department
of finance an application in form to be prescribed by the
director setting forth:
(1) The name of the applicant if an individual; if the
applicant is a corporation a list of its officers and
directors and their addresses; if the applicant is a
partnership a list of the partners and their addresses; or
if the applicant is a limited liability company a list of
its members or managers and their addresses. Every
corporation shall designate and appoint one (1) or more of
its officers or employees, every partnership shall designate
and appoint one (1) or more of its partners, and every
limited liability company shall designate and appoint one
(1) or more of its members or managers who shall submit to
the examination hereinafter required. No permit shall be
issued to any corporation, partnership or limited liability
company unless and until the persons so designated shall
submit to and pass the examination required by this chapter.
(2) The location of the principal office or place of
business of the applicant.
(3) Other names, if any, by which the applicant conducts,
engages in or solicits business.
(4) The names of all persons and organizations with which
the applicant is affiliated in such business, and the
location of the principal office or place of business of
each such affiliation.
(5) A complete description of the business to be conducted,
or plan of operation contemplated, by the applicant in this
state.
(6) A list of all papers and filings used by the applicant
which must accompany the application and be identified as
exhibits by number.
(7) A financial statement showing the applicant to have a
financial net worth of not less than two thousand five
hundred dollars ($2,500), which statement shall be subject
to disclosure according to chapter 3, title 9, Idaho Code.
The financial statement shall specify assets and
liabilities, providing detailed reference to each item
listed to inform the director of the nature and extent of
such assets and liabilities. This financial statement shall
be signed by the applicant or its proper agent. The net
worth shall not include any notes, accounts, bills, and
judgments held for collection by the applicant nor shall it
include good will or other assets the value of which is
speculative and not susceptible to prompt liquidation.
(8) Such other information concerning the applicant's
business as the director may reasonably require. Such
application shall be executed and verified by the applicant
or applicants personally, or by an individual associated
with the applicant as designated by the director.
§ 26-2225. Information and materials required with
application--Examination fee--Consent to service
Such application shall be accompanied by:
(1) Complete copies of all literature and circulars issued
or circulated by or on behalf of the applicant in soliciting
or advertising for business including circular and form
letters.
(2) Complete forms of all contracts designed for execution
by persons placing any account, bill, claim or other
indebtedness in the hands of the applicant for collection.
(3) Complete forms of all contracts and assignments designed
for execution by debtors making any assignments to or
placing any property with the applicant for the purpose of
paying the creditors of such debtors.
(4) Complete forms of all contracts and releases designed
for execution by creditors to whom payments are made or are
to be made by the applicant.
(5) If the applicant is a corporation or association, a copy
of its articles of incorporation or association, duly
authenticated.
(6) A list of the names and addresses of all agents who will
contact debtors or creditors or solicit business for the
applicant in this state.
(7) The names and addresses of all directors and officers,
if the applicant is a corporation or association; and the
names of the members, if the applicant is an unincorporated
company, a firm or copartnership.
(8) An agreement executed by the applicant stipulating that
no literature or form of contract not submitted with the
application will be issued, circulated or used by the
applicant prior to the filing thereof with the director.
(9) An initial examination fee as fixed by the director, but
not to exceed one hundred dollars ($100), except that no
examination fee need be paid by a nonprofit corporation or
association conducting credit counseling or debt prorating
activities.
(10) Complete copies of all literature, circulars,
contracts, and/or other related material to be circulated or
distributed by the permit holder to a debtor.
(11) An irrevocable consent to service executed by the
applicant appointing the director and his successors in
office to be attorney of the applicant to receive service of
any lawful process in any civil suit, action, or proceeding
against the applicant which arises under this act or any
rule or order hereunder. After the consent has been filed,
any service hereunder shall have the same force and validity
as if personally served on a person filing the consent. A
person who has filed such a consent in connection with a
previous registration need not file another. Service may be
made by leaving a copy of the process in the office of the
director.
§ 26-2226. False or fraudulent debt reduction and
elimination practices
(1) No person shall obtain or attempt to obtain a fee,
compensation or consideration from a person through a false
or fraudulent representation or statement that a debt, loan,
or extension of credit could or would be eliminated, reduced
or substituted, if the representation or statement is false
or misleading or has the tendency or capacity to be
misleading, or if the person making the representation or
statement does not have sufficient information upon which a
reasonable belief in the truth of the representation or
statement could be based.
(2)(a) Whenever it appears to the director that a person has
violated subsection (1) of this section, the director shall
have the powers and remedies set forth in sections 67-2754
and 67-2755, Idaho Code, as well as the powers and remedies
found in this chapter, as to any such violation.
(b) Any person who violates subsection (1) of this section
shall be subject to the criminal proceedings and penalties
set forth in sections 67-2757, 67- 2758 and 67-2759, Idaho
Code, as well as the criminal proceedings and penalties
provided in this chapter.
§ 26-2227. Repealed
§ 26-2228. Powers of the director
The director shall have the power to provide the manner and
method for conducting examinations. Applications for
examination shall be filed with the director at least ten
(10) days prior to the examination date.
The examination shall be uniformly given, may be written or
oral or a combination of both and shall be practical in
nature. The examination may include questions on
bookkeeping, credit adjusting, business law, collection
procedure, business ethics, agency, debtor and creditor
relationship, trust funds, creditors' funds, business funds,
fiduciary relationships, and the provisions of this act and
the rules duly issued by the director pursuant to this act,
and such other subject matter as the director by rule may
specify. The examination shall be given twice each year or
at such more frequent intervals as the director may direct.
§ 26-2229. Examination--Permit
(1) The director shall examine each application for a permit
and accompanying papers and investigate the qualifications
of the applicant and if he finds therefrom that the same are
in proper form, that the literature proposed to be
circulated does not tend to conceal or misrepresent any fact
to the detriment of any person dealing with the applicant,
that the contract or contracts proposed to be entered into
for the collection or payment or prorating of accounts,
bills, claims or other indebtedness by the applicant, or
prorating or receiving money for payment to creditors are
equitable, fair and reasonable, and that the applicant meets
all other requirements and qualifications of this act, he
shall examine the applicant if an individual, or the
designated officer or officers or employees of any
corporation and the designated member or members of any
partnership, in the manner described in section 26-2225,
Idaho Code, and if such applicant or designee passes a
satisfactory examination, he shall cause a permit to be
issued authorizing the applicant to conduct such a business
in this state subject to the provisions of this act, until
the fifteenth day of March next thereafter.
(2) If the director finds that the applicant does not
qualify under the provisions of this act, the application
shall be denied. If he finds the applicant is qualified he
must issue a permit upon the filing of the bonds required by
this act and the payment of an annual permit fee as fixed by
the director, but not to exceed fifty dollars ($50), except
that no permit fee need be paid by a nonprofit corporation
or association conducting credit counseling or debt
prorating activities.
(3) Contracts between collection agencies and clients shall
be in writing. No collection contract shall be deemed
equitable, fair or reasonable within the meaning of this
section which in substance either:
(a) Permits the applicant to retain any sums due the
creditor on any account, bill, claim or other indebtedness
collected for him by the applicant on account of, or as a
setoff against, any fee, commission, charge, expense or
compensation claimed, other than the regular collection fees
or commissions, to be due from such creditor on any other
account whatever.
(b) Penalizes the creditor for failure to produce evidence
in support of any account, bill, claim or item of
indebtedness placed with the applicant for collection in
addition to that delivered upon the execution of such
contract.
(c) Penalizes such creditor for any unintentional error,
mistake or omission in furnishing to the applicant the
correct name or address of any debtor.
(d) Stipulates, directly or indirectly, for the payment of
any fee, commission or compensation in excess of fifty per
cent (50%) of the amount actually collected on any account,
bill, claim or other indebtedness entrusted to the applicant
for collection, provided, however, that in the case of
interest collected by a permittee, the creditor and the
permittee by agreement between them may provide for division
of such interest between them without such percentage
limitation; and provided further that in the case of
collection of checks dishonored by nonacceptance or
nonpayment the creditor and the permittee by written
agreement between them may provide, in place of a percentage
fee, for the payment of a set dollar amount collection fee
not to exceed the amount provided in section 28-22-105,
Idaho Code, which shall not be subject to the fifty per cent
(50%) limitation. Collection agreements to proceed under
section 1-2301A, Idaho Code, shall be subject to the fifty
per cent (50%) limitation.
(4) A permit holder, engaging in the business of receiving
money from debtors for application to or payment or
prorating the account or accounts of any creditor or
creditors of such debtor, for compensation or otherwise, or
in the business of acting as the assignee for the benefit of
creditors as a primary or secondary object, shall not take
or receive for services performed by such permit holder for
any one (1) person more than fifteen per cent (15%) of the
amount received by it at any one (1) time from or on behalf
of that person for payment or prorating to creditors and no
other charges shall be made or received for any such
service.
§ 26-2229A. Requirement of fair, open and honest dealing
(1) Every permittee, foreign permittee and agent shall deal
openly, fairly, and honestly without deception in the
conduct of the collection agency business. When not
inconsistent with the statutes of this state, the provisions
of the federal fair debt collection practices act, 15 U.S.C.
section 1692, et seq., as amended, may be enforced by the
director against agents, permittees and foreign permittees
under the provisions of this chapter.
(2) In any and every instance where the permittee has a
managerial or financial interest in the creditor, or where
the creditor has a managerial or financial interest in the
permittee, disclosure of such interest must be made on each
and every contact with a debtor in seeking to make a
collection of any account, claim, or other indebtedness
where such interest or relationship exists between creditor
and permittee.
(3) No permittee, foreign permittee, or agent shall collect
or attempt to collect any interest or other charges, fees,
or expenses incidental to the principal obligation unless
such interest or incidental fees, charges, or expenses are:
(a) Expressly authorized by statute;
(b) Allowed by court rule against the debtor;
(c) Have been judicially determined; or
(d) Are provided for in a written form agreement, to be
signed by both the debtor and the permittee, and which has
the prior approval of the director with respect to the terms
of the agreement and amounts of the fees, interest, charges
and expenses.
(4) No person shall sell, distribute or make use of
collection letters, demand forms or other printed matter
which are made similar to or resemble governmental forms or
documents, or legal forms used in civil or criminal
proceedings.
(5) No person shall use any trade name, address, insignia,
picture, emblem or any other means which creates any
impression that such person is connected with or is an
agency of government.
§ 26-2230. Branch offices
(1) The director may authorize a permittee, upon request, to
conduct collection activities authorized in this chapter at
additional locations. The additional locations shall be
considered branches of the permittee. The director shall be
informed of the opening and closing of all branch locations
operated by permittees.
(2) The director may authorize a permittee, upon written
request, to conduct limited collection activities at
locations other than the principal location of the permittee
or branches. The facilities may be at the domiciles of the
agents employed by the permit holder. Collection activities
at facilities shall be limited to telecommunications with
creditors, clients, debtors, and the permittee's offices and
branches. The director shall be informed of the opening and
closing of all facility locations operated by permittees.
§ 26-2231. Renewal of permit
Upon application postmarked on or before the fifteenth day
of March of each year, the holder of any permit issued under
the provisions of this chapter shall be entitled to have
such permit renewed for the succeeding calendar year upon
payment of the annual permit fee as fixed by the director,
but not to exceed fifty dollars ($50.00), compliance with
the bond requirements of this chapter, the filing of a
financial statement in the form required by section
26-2224(7), Idaho Code, showing a net worth of at least two
thousand five hundred dollars ($2,500) for each place of
business for which a permit is sought, filing of all other
documents required by section 26-2224, Idaho Code, and
approval by the director of all literature to be employed by
the permittee during the course of the business year, except
no annual permit renewal fee need be paid by a nonprofit
corporation or association conducting credit counseling or
debt prorating activities.
§ 26-2232. Bonds
Upon approval of the application and prior to the issuance
of the permit the applicant must file in the department of
finance two (2) bonds. Both bonds shall be in a form
provided by the attorney general of this state, and shall be
executed by the applicant as principal and by some surety
company authorized to do business in this state as surety,
and shall be for the term of any permit issued to the
applicant. Each permittee shall be required to have the two
(2) bonds for each permit as hereinafter provided. In lieu
of the bonds required by this section, a certificate of
deposit issued by an Idaho bank and made payable to the
director may be provided to the director in the same
principal amount as required for bonds. The interest on the
certificate of deposit shall be payable to the permittee.
The certificate of deposit shall be maintained at all times
during which the permittee is authorized to do business
under Idaho law, and must provide that it will remain in
effect for at least three (3) years following discontinuance
of operations, unless released earlier by the director when
all statutory requirements have been met.
(a) A bond shall be executed to the state of Idaho in the
sum of fifteen thousand dollars ($15,000) or upon renewal in
such larger sum as hereinafter provided. In any case where a
permittee or its representatives has failed to account for
and pay over the proceeds of any collection made or money
received for payment or prorating to creditors, or has
failed to return to a debtor any sum received that was not
to be applied to his debts, the creditor or debtor shall
have in addition to all other legal remedies a right of
action in his own name on such bond without the necessity of
joining the permittee in such action. The bond shall be
continuous in form and shall remain in full force and effect
for the permit period. The surety may cancel the bond
provided that the surety shall in such event provide the
permittee and the director with notice thirty (30) days
prior to cancelation of said bond. Such notice shall be by
registered or certified mail with request for a return
receipt and addressed to the permittee at its main office
and to the director. In no event shall the liability of the
surety for any and all claims against the bond exceed the
face amount of such bond.
Upon renewal of any permit, the permittee shall supply the
director with a statement of the preceding year's net
collections. The amount of the bond upon renewal shall be in
the amount of fifteen thousand dollars ($15,000), or two (2)
times the average monthly net collections for the preceding
year computed to the next highest one thousand dollars
($1,000), whichever sum is greater, up to a maximum of one
hundred thousand dollars ($100,000).
(b) A bond shall be executed to the state of Idaho in the
sum of two thousand dollars ($2,000), which shall be limited
to the indemnification of the department of finance for any
and all expenses incurred as a result of investigations,
administrative proceedings, and prosecutions which shall be
instituted by the director against a permittee or licensee
pursuant to this act. The bond shall be continuous in form
and remain in full force and effect and run concurrently
with the permit period and any renewal thereof. The surety
may cancel the bond provided that the surety shall in such
event provide the permittee and the director with notice
thirty (30) days prior to cancelation of said bond. Such
notice shall be registered or certified mail with request
for a return receipt and addressed to the permittee at its
main office and to the director. In no event shall the
liability of the surety for any and all claims against the
bond exceed the face amount of such bond.
§ 26-2232A. Alternate Bonding
(1) A debt counselor or credit counselor which holds a valid
permit under this chapter and is engaged in the activities
described in section 26-2223(6) or 26-2223(7), Idaho Code,
may, upon approval of the director of the department of
finance, supply the director, upon renewal of its permit, in
lieu of the bond required in section 26-2232(a), Idaho Code,
a bond in the minimum amount of ten thousand dollars
($10,000) or two (2) times the average monthly net of
unremitted funds received from debtors for the preceding
year, computed to the next highest one thousand dollars
($1,000), whichever is greater.
(2) Such bonds shall be subject to the same conditions and
requirements as the bond set forth in section 26-2232(a),
Idaho Code, and shall be in addition to the bond required by
section 26-2232(b), Idaho Code.
(3) Application for approval by the director of the
department of finance shall be on a form provided by the
director and shall include such information as the director
shall require.
(4) A credit counselor applicant shall furnish with the
application a certified copy of applicant's determination as
an exempt corporation under section 501(c)(3) of the
Internal Revenue Code, made by the district director of
internal revenue, or in the subsequent renewal of its permit
and bond, evidence of continuance of its exempt
determination by the district director of internal revenue.
(5) Upon approval by the director of the department of
finance of the alternate bond and so long thereafter as the
credit counselor or debt counselor service shall continue
operations under the alternate bond herein provided for, it
shall furnish to the director of the department of finance,
not later than the fifteenth day of March of each year, a
statement containing the following information:
(a) The amount of net unremitted funds received from debtors
it held on the first day of each calendar month which was
collected or received in any prior month or months showing
the exact month received and the amount for such month.
(b) The amount of money received during each calendar month
from debtors.
(c) The amount of money remitted to creditors or returned to
debtors during each calendar month.
(d) The moneys, fees, or commissions retained from the
moneys received during each calendar month.
(e) The amount of net unremitted funds due creditors or
debtors at the end of each calendar month.
(6) For the purposes of this section money or moneys
remitted shall mean money which has actually been conveyed
or transferred to the creditor or debtor or his designated
agent by physical transfer of cash or by certified or
cashier's check or other means so that actual ownership of
such funds shall have passed to the creditor or debtor or
his agent and no right or interest shall remain in the
credit counseling service. A check or bank draft issued but
not actually paid, without recourse shall not constitute a
remittance.
(7) At any time that the director of the department of
finance shall deem that the alternate bond provided for in
this section shall be inadequate he may withdraw and cancel
approval for the "in lieu" bond and require the bond
provided in section 26-2232(a), Idaho Code, or cancel or
suspend the permit of the consumer credit counseling service
as provided in section 26-2236, Idaho Code.
§ 26-2233. Permittee accounts required
A permittee shall in its own name:
(1) Establish and maintain a separate trust account for
deposit and remittance of creditors' funds in a financial
institution, the deposits of which are insured by the
federal deposit insurance corporation.
(2) Establish and maintain a separate business account for
the business funds and moneys in a financial institution,
the deposits of which are insured by the federal deposit
insurance corporation.
§ 26-2234. Investigations, records and payment of funds
(1) The director or his duly authorized representatives may
make an annual examination, or more frequently in the
director's discretion, of the place of business of each
permittee and foreign permittee and for that purpose the
director shall have free access to the offices and places of
business, books, creditors' accounts, trust accounts,
business accounts, records, papers, files, safes and vaults
of all such permittees.
(2) The director may, upon his own motion, and shall, upon
the sworn complaint in writing of any person, investigate
the action of any person or persons claimed to have violated
the provisions of this chapter, and for that purpose the
director shall have free access to the offices and places of
business, books, creditors' accounts, trust accounts,
business accounts, records, papers, files, safes and vaults
of all such persons.
(3) Every permittee and foreign permittee shall execute to
the director an agreement of consent to examination of any
and all bank accounts of the permittee providing the
director with authority to make such examination at any time
the director, in his discretion, deems it to be in the
public interest.
(4) The cost of examination for the first annual examination
each year and any investigation shall be paid to the
director by each permittee so examined or investigated and
the director may maintain an action for the recovery of such
costs against the permittee or against the surety providing
the bond to indemnify the state for such expenditures as
required by this chapter. The cost shall be fixed annually
by the director, but shall not exceed twenty-five dollars
($25.00) per examination hour.
(5) Each permittee shall acknowledge in writing each account
received for collection and shall maintain a record of such
account, make a permanent record of all sums collected by
him and of all disbursements made by him. Every permittee
shall keep and preserve all records relating to accounts
received for collection, collections, receipts, and disposal
or disbursement of all creditors' funds for a period of five
(5) years after the final disposition of any account. It
shall be unlawful for any person to intentionally make any
false entry, omit to make a necessary entry, mutilate,
secrete away, destroy or otherwise dispose of any record
mentioned in this subsection, provided a record may be
disposed of after the five (5) year period heretofore
provided.
(6) Every permittee shall, within thirty (30) days after the
close of each calendar month, pay to his creditors the net
proceeds of all collections made by the permittee during
said calendar month. Each permittee shall report to the
creditor all collections made by him and/or any payments
made to the creditor within thirty (30) days after the close
of each calendar month.
(7) Every permittee shall maintain his books and records in
accordance with generally accepted accounting practices
subject to such rules and regulations as adopted by the
director.
(8) The director, may impound the creditors' accounts, or
trust accounts of any permittee if it shall be deemed in the
general public interest.
§ 26-2235. Denial, suspension, revocation of permit
(1) An application for a permit may be denied and, after
notice and hearing, a permit may be suspended or revoked, by
the director if he finds that the holder of or the applicant
for, or any member or manager of an applicant or holder, or
any officer or manager of an applicant or holder of such
permit:
(a) has violated any provision of this chapter or any rule
or order of the director authorized under this chapter; or
(b) is not legally qualified to do business in this state;
or
(c) has violated any contract or agreement of a type
mentioned in this chapter; or
(d) has failed, refused, neglected, on demand, to pay or
remit to any client the agreed portion of any sum collected
by the permittee on any bill, claim, account or other
indebtedness entrusted to such permittee for collection; or
(e) has failed to return to a debtor an amount that was not
to be paid on his debts; or
(f) has made a material misstatement in the application for
such permit or renewal; or
(g) has obtained or attempted to obtain a permit or renewal
by fraud or misrepresentation; or
(h) has misappropriated or converted to his own use or
illegally withheld moneys collected or held for any other
person; or
(i) has without properly qualifying as herein provided
represented himself as a permittee for the purpose of
soliciting for or representing any business covered in this
chapter; or
(j) has been convicted of, found guilty of, pled guilty to,
or has received a withheld judgment by a court of competent
jurisdiction for forgery, embezzlement, fraud, obtaining
money under false pretenses, larceny, extortion, conspiracy
to defraud or other like offense, any theft offense, a crime
involving moral turpitude, or violating any provision of
this chapter or is currently disbarred from the practice of
law in any state; provided, the director may, in his
discretion, issue a permit to any person convicted of any of
the above enumerated crimes providing a period of five (5)
years has elapsed from the date of his conviction, finding
of guilty, plea of guilty, or withheld judgment; or
(k) has had a permit revoked, canceled, or denied; or
(l) owes outstanding, unpaid, delinquent and undisputed
accounts or judgments.
(2) The director, after notice and hearing, may impose a
civil penalty of not more than one thousand dollars ($1,000)
for each violation upon any permittee found to have violated
any provision of this chapter.
(3) Permits shall be issued hereunder only to persons who
are, and to partnerships, firms, companies, and associations
whose members and managers are, and to corporations whose
managers are over twenty-one (21) years of age.
(4) The director may, after notice and hearing, impose any
sanction authorized by this section on a permit holder if
the director finds that an agent of the permit holder has
violated any provision of section 26-2229A, Idaho Code.
(5) The director may, in his discretion, and by an order
issued in accordance with chapter 52, title 67, Idaho Code,
prohibit permit holders from utilizing an individual as an
agent if the individual has participated in a violation of
this act, or any similar statute of another state.
§ 26-2236. Subpoenas
The director shall have the power to issue subpoenas and
bring before him any person, book, or writing in this state,
to swear witnesses and to take the testimony of any person
by deposition, with the same fees and mileage and in the
same manner as prescribed by law in judicial procedure in
district courts of this state in civil cases. Any party to a
proposed revocation or suspension of a permit shall have the
right of subpoena to compel the attendance of witnesses and
produce all books and writing on his behalf. In case any
witness shall fail or refuse to comply with a subpoena to
appear before the director, the clerk of the district court
of the county in which the administrative proceedings are
held shall, upon demand of the director, issue a subpoena
reciting the demand therefor and summoning the witness to
appear and testify at a time and place fixed; and violation
of such subpoena or disobedience thereto shall be deemed and
punished as a violation of any other subpoena issued from
the district court. Any revocation or suspension of any
permit or license provided for by this chapter shall be
governed by chapter 52, title 67, Idaho Code.
§ 26-2237. Fees--Disposition of funds
All fees provided for in this chapter shall be paid to the
director and by him remitted to the state treasurer pursuant
to section 59-1014, Idaho Code, and all such funds shall be
deposited to the credit of the finance administrative
account in the state dedicated fund.
§ 26-2238. Violations--Penalties
Any person who shall do business within the state of Idaho
as defined in this act, without a permit, or any permit
holder who fails to establish and maintain a separate trust
account for such creditors' funds for each permit which he
holds, or fails to make and keep the records required by
this act, shall be guilty of a felony and punishable by a
fine not exceeding five thousand dollars ($5,000) or by
imprisonment in the state penitentiary for not more than
five (5) years, or both, and any person who shall fail to
comply with any of the other provisions of this act shall be
guilty of a misdemeanor.
§ 26-2239. Exemptions
The provisions of this chapter shall not apply to the
following:
(1) Any attorney-at-law duly authorized to practice in this
state;
(2) Any regulated lender as defined in section
28-41-301(37), Idaho Code, nor any subsidiary, affiliate or
agent of such a regulated lender to the extent that the
subsidiary, affiliate or agent collects for the regulated
lender;
(3) Any trust company authorized to do business in this
state;
(4) Any federal, state or local governmental agency or
instrumentality;
(5) Any real estate broker or real estate salesman licensed
under the laws of and residing within this state when
engaged in the regular practice of a real estate business;
(6) Any abstract and title companies doing an escrow
business;
(7) Any mortgage company to the extent that such mortgage
company is engaged in the regular business of a mortgage
company as defined in section 26-2802, Idaho Code;
(8) Any court appointed trustee, receiver or conservator;
(9) Any telephone corporation, as defined in subsection (10)
of section 62- 603, Idaho Code, whose initial request for
payment on behalf of such telephone corporation or on behalf
of another person is made by the telephone corporation as a
part of regular telecommunications billings to its customers
and at a time before the account, bill, claim or other
indebtedness becomes past due or delinquent;
(10) A 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 does so only for persons to whom he is so
related or affiliated and if the principal business of such
person is not the collection of debts.
§ 26-2240. Agent identification--Quarterly notice--Fee
Each permit holder shall, with its initial application and
each annual renewal, file with the director a list of all
agents including the name of the agent and any other
identifying information the director may require. A fee of
twenty dollars ($20.00) for each listed agent shall
accompany the list. The director shall be notified in
writing of any additions to the agent list no less often
than every calendar quarter. A fee of twenty dollars
($20.00) shall be filed with the director for each
additionally identified agent in the quarterly notification
of additions to a permit holder's agent list. An agent is
not required to be listed, nor the fee paid therefor, unless
the agent acted for the permit holder for more than five (5)
business days.
§§ 26-2241, 26-2242. Repealed by S.L. 1997, ch. 370, § 9
§§ 26-2241, 26-2242. Repealed by S.L. 1997, ch. 370, § 9
§ 26-2243. Property right in accounts--Practice of law
prohibited
A permit holder shall have a property right in any account
assigned to it for collection; provided, however, no right
herein granted shall authorize such permit holder to engage
in the practice of law.
§ 26-2244. Cease and desist orders, penalty
(1) Whenever it appears to the director that it is in the
public interest, he may order any person to cease and desist
from acts, practices, or omissions which constitute a
violation of this chapter.
(2) Whenever, after notice and a hearing, the director finds
that any person has violated any provision of this chapter,
the director may order the person to cease and desist from
acts, practices or omissions which constitute a violation of
this chapter and:
(a) Impose a civil penalty of not more than two thousand
five hundred dollars ($2,500) for each violation upon any
person found to have violated any provision of this chapter;
(b) Issue an order restoring to any person in interest any
consideration that may have been acquired or transferred in
violation of this chapter; or
(c) Issue an order that the person violating this chapter
pay costs, which in the discretion of the director may
include an amount representing reasonable attorney's fees
and reimbursement for investigative efforts.
§ 26-2245. Director's power to enjoin violations
(1) Whenever it appears to the director that any person, or
employee or agent thereof, has engaged in or is about to
engage in any act or practice or omission constituting a
violation of any provision of this chapter, or any rule or
order hereunder, he may in his discretion bring an action in
any court of competent jurisdiction to enjoin any such acts
or practices and to enforce compliance with this chapter or
any rules hereunder. Upon a showing that a person, or
employee or agent of any person, has engaged in or is about
to engage in an act or practice constituting a violation of
this chapter or any rule or order hereunder, a permanent or
temporary injunction, or restraining order shall be granted
and a receiver or conservator may be appointed for the
defendant's assets. The director shall not be required to
furnish bond.
(2) In addition to the foregoing, the director, in his
discretion and upon a showing in any court of competent
jurisdiction that a person has violated the provisions of
this chapter or rule or order hereunder, may be granted the
following additional remedies:
(a) An order restoring to any person in interest any
consideration that may have been acquired or transferred in
violation of this chapter;
(b) An order that the person violating this chapter, rule or
order hereunder, pay a civil penalty to the department in an
amount not to exceed two thousand five hundred dollars
($2,500) for each violation;
(c) An order allowing the director to recover costs, which
in the discretion of the court may include an amount
representing reasonable attorney's fees and reimbursement
for investigative efforts;
(d) An order granting other appropriate remedies upon a
proper showing.
§ 26-2246. Discontinuance of operations--Requirements
(1) Before discontinuance of operations as a collection
agency under the terms of this act, every permittee shall
furnish the director with proof in a form to be determined
by the director that:
(a) Proper remittance has been made to all creditors or
claimants of money collected.
(b) All accounts have been returned to the creditors and
certification to that effect has been provided to the
director.
(c) All valuable papers and assignments of judgment given to
the permittee by the creditor [creditors] in connection with
claims have been returned to the creditor [creditors].
(d) All judgments obtained by the collection agency against
debtors, in the agency's name, have been returned and
assigned to the creditors.
(2) Any permittee discontinuing doing business as a
collection agency shall maintain the bonds required of such
permittee to conduct a collection agency business until a
final accounting has been made to the director and approved
by him.
§ 26-2247. Institution of criminal proceedings
The director may refer such evidence as may be available
concerning violations of this act or of any rule or order
hereunder to the attorney general or the proper prosecuting
attorney, either of whom may in his discretion, with or
without such a reference, institute appropriate criminal
proceedings under this act.
§ 26-2248. Administration of act
The administration of the provisions of this act shall be
under the general supervision and control of the director,
subject to chapter 52, title 67, Idaho Code. The director
may from time to time make, amend, and rescind such rules,
regulations and forms necessary to carry out the provisions
of this act. No rule, regulation or form may be made unless
the director finds that the action is necessary or
appropriate for the public interest or for the protection of
creditors and debtors consistent with the purpose of this
act.
§ 26-2249. Judicial review of final orders of director
Any person aggrieved by a final order of the director may
obtain judicial review of that order pursuant to the
provisions of chapter 52, title 67, Idaho Code.
§ 26-2250. Foreign permittees
(1) Notwithstanding any other provision of this chapter, if
a permittee meets the conditions of subsection (2) of this
section, it shall be exempt, as a foreign permittee, from
the requirements that it maintain an agent or office in this
state.
(2) To be a foreign permittee, a collection agency must:
(a) Be qualified to do business in the state of Idaho ;
(b) Be the holder of a valid permit or license to do
business as a collection agency in the state where it has
its principal place of business, or holds a license in
another state if the state where its principal place of
business is located does not require licenses to operate
collection agencies;
(c) Certify in its application for a permit and each annual
renewal that it will not solicit any creditor client which
has its principal place of business in this state;
(d) Maintain a bond substantially similar, as determined by
the director, to the bond required by subsection (b) of
section 26-2232, Idaho Code;
(e) Maintain no agent or place of business in this state;
(f) Conduct its business in this state exclusively by mail
or telecommunications; and
(g) Maintain its books and records in accordance with
generally accepted accounting practices. The director or his
duly authorized representatives may make an annual
examination, or more frequent in the director's discretion,
of the principal place of business of a foreign permittee
outside the state of Idaho, and for that purpose the
director shall have free access to the offices and places of
business, books, creditors' accounts, trust accounts,
business accounts, records, papers, files, safes and vaults
of all such permittees. The actual cost of examination for
the first annual examination each year and any investigation
shall be paid to the director by each permittee so examined
or investigated. The director may maintain an action for the
recovery of such costs against the foreign permittee.
(3) The director shall examine each application for a
foreign permit hereunder in the manner provided in section
26-2229, Idaho Code, and if the applicant is found to be
qualified under the provisions of this chapter, shall cause
a permit to be issued authorizing the applicant to conduct a
business in this state as a foreign permittee. An applicant
who has been issued a foreign permit pursuant to this
chapter shall be known as a "foreign permittee." If the
director finds that the applicant does not qualify under the
provisions of this chapter, the application shall be denied.
(4) The failure of a permittee to comply with the provisions
of this section shall constitute grounds for denial,
revocation or suspension of a foreign permit pursuant to
section 26-2235, Idaho Code.
§ 26-2251. Cancellation of permit
Any permittee or foreign permittee failing to apply in a
timely manner for renewal of a permit shall have said permit
canceled effective the day following the last day for
renewal applications to be filed. Engaging in collection
agency business with a canceled permit shall be a violation
of the provisions of this chapter. To restore a canceled
permit the fee shall be two hundred dollars ($200). A
canceled permit may be restored only before the expiration
of six (6) months following the date of annual renewal.
§ 26-2252. Repealed
Current through all 2007 laws of the First Regular Session
of the 59th Legislature, Chs. 1-358 that are effective on or
before Apr. 11, 2007.
END OF DOCUMENT
(C) 2007 Thomson
Case Law
I identified only one significant case construing the Act.
In Dun & Bradstreet, Inc. v. McEldowney, 564 F. Supp. 257
(D. Idaho 1983). Dunn addressed application of the Act, and
a regulatory application of the Act, to a debt collection
agency. Although the facts do not involve a credit repair
business, the legal requirements addressed in the case apply
with equal force to debt collection and credit repaid
businesses. The court ruled that the statute’s requirement
that business licensed under the Act maintain an in state
office was clear and did not violate the dormant commerce
clause. The court ruled that regulatory construction of
the Act that would have required all communications from a
licensed business to in-state residents to come from the
required in-state office was beyond the language of the act
and would violate the dormant commerce clause. Plaintiff’s
also challenged the Act based on their reading that it would
deny a license required by the Act to anyone who was not an
in-state resident. The court found that the residency
requirement was discretionary with the licensing authority,
not mandatory, and thus was valid.
Dun & Bradstreet, Inc. v. McEldowney, 564 F. Supp. 257 (D.
Idaho 1983)
DUN & BRADSTREET, INC., a Delaware corporation, Plaintiff v.
TOM D. McELDOWNEY, Director of the Department of Finance of
the State of Idaho, Defendant
Civil No. 82-1080
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF IDAHO
564 F. Supp. 257; 1983 U.S. Dist. LEXIS 16950
May 13, 1983
CASE SUMMARY
PROCEDURAL POSTURE: Plaintiff debt collector brought action
against defendant, Director of the Department of Finance of
the State of Idaho, to enjoin the director from enforcing
Idaho Code §§ 26-2223A, 26-2229, 26-2233, and 26-2242(8),
which required debt collection to be conducted from within
the State of Idaho.
OVERVIEW: Plaintiff debt collector was incorporated in
Delaware . It operated an office, as required by Idaho law,
within the State of Idaho . It sought a declaratory judgment
that certain Idaho statutes that governed debt collection
within the state were unconstitutional because they violated
the U.S. Constitution's Commerce Clause. The court examined
the statutes and their affect on interstate commerce and
concluded that one statute, which prohibited communications
to persons within the state of Idaho to be instigated from
within that state to be unconstitutional. Other statutes,
which required debt collectors to maintain in-state offices
and which connected the issuance of licenses to residency
requirements, were deemed constitutional. Thus the debt
collector's motion for summary judgment was granted in part
and denied in part.
OUTCOME: The court denied plaintiff debt collector's motion
for a declaratory judgment as to certain statutes and
granted the motion concerning the statute that required
intrastate communications and excluded interstate
communications, holding that it was constitutionally
impermissible.
CORE TERMS: collection agency, collection, permittee,
consumer, interstate commerce, finance, license, licensee,
in-state, per se, residency requirement, personally,
incidental, putative, interstate, soliciting, commerce,
actively, impermissible, telephone, resident, unfair, mail,
declaratory judgment, business carried, evenhandedly,
declaring, balancing, collectors, abusive
COUNSEL: [**1] Dale G. Higer of Eberle, Berlin, Kading,
Turnbow & Gillespie, Boise, Idaho, for Plaintiff.
Patric V. Collins, Deputy Attorney General, Department of
Finance, Boise , Idaho , for Defendant.
JUDGES: Ryan, J.
OPINION BY: RYAN
OPINION
[*258] MEMORANDUM OPINION AND ORDER
This action is brought by the plaintiff, Dun & Bradstreet,
to restrain and enjoin Tom D. McEldowney, Director of the
Department of Finance of the State of Idaho, from enforcing
the provisions of Chapter 22, Title 26, Idaho Code, and more
particularly, Section 26-2223A, Section 26-2229, Section
26-2233, and Section 26-2242(8), [*259] Idaho Code, and
the rules and regulations adopted thereunder. Dun &
Bradstreet asks this court to enter a declaratory judgment
in accordance with the provisions of 28 U.S.C. §§ 2201 and
2202 declaring that the provisions of said statutes of the
State of Idaho and the rules and regulations adopted
thereunder are null and void and have no effect as being a
contravention of the commerce clause, Article I, Section 8,
of the Constitution of the United States.
The parties have caused to be filed a Stipulation and Order
Concerning Issues Presented and Conduct of the Case, and
providing that depositions [**2] be taken of one witness
for each party, after which the parties fully briefed the
matter to the court. The court heard oral argument of
counsel, and being fully advised in the premises, sets forth
the following opinion.
Admitted facts requiring no proof filed by the parties are
as follows:
(a) Dun & Bradstreet, Inc., is a corporation organized and
existing under the laws of the State of Delaware , and has
its principal place of business in New York City , New York
.
(b) Tom D. McEldowney is the Director of the Department of
Finance of the State of Idaho .
(c) Dun & Bradstreet, Inc., is a collection agency and as
such engages in the activities enumerated in Section
26-2223, Idaho Code, and is a permittee authorized to engage
in such activities within the State of Idaho.
(d) As an entity which has a nationwide collection agency
practice, Dun & Bradstreet is engaged in interstate
commerce.
(e) As a permittee, Dun & Bradstreet, Inc., is required
under the provisions of Section 26-2223A, Idaho Code, to
maintain an office within the State of Idaho. This office is
maintained in Boise , Idaho , and must be open to the public
during normal business hours on each business day under the
provisions [**3] of this section of the Idaho Code. Dun &
Bradstreet is required to employ a resident of the State of
Idaho who has passed the examination for a permit required
by Section 26-2229, Idaho Code, to be personally and
actively in charge of the business of Dun & Bradstreet,
Inc., carried on at their office. In addition, the resident
employee must have a license as required by Section 26-2240,
Idaho Code.
(f) Tom D. McEldowney and employees of the Department of
Finance of the State of Idaho have interpreted the
provisions of Chapter 22, Title 26, Idaho Code, to prohibit
Dun & Bradstreet, Inc., and other collection agencies from
soliciting for collection the accounts of creditors within
the State of Idaho through the use of the mails of the
United States or telephone from outside the State of Idaho,
or effecting the collection of creditors' accounts assigned
to Dun & Bradstreet, Inc., or other collection agencies for
collection (except by forwarding such accounts to collection
agencies licensed and located in the State of Idaho) through
the use of the mails of the United States or telephone from
outside the State of Idaho.
QUESTIONS PRESENTED
The following issues of law, and no others, [**4] are
presented by this action:
(a) Whether the provisions of Section 26-2223A, Idaho Code,
impose an unreasonable restriction on interstate commerce in
violation of the commerce clause, Article I, Section 8, of
the Constitution of the United States.
(b) Whether the provisions of Section 26-2242(8), Idaho
Code, impose an unreasonable restriction on interstate
commerce in violation of the commerce clause, Article I,
Section 8, of the Constitution of the United States .
(c) Whether the interpretation of Chapter 22, Title 26,
Idaho Code, made by Tom D. McEldowney and employees of the
Department of Finance of the State of Idaho, that a
collection agency permittee and its employees are prohibited
from soliciting for collection the accounts of creditors
within the State of Idaho through the use of the mails of
the United States or telephone from outside the State of
Idaho, and that a collection agency permittee and its
employees are prohibited from effecting the collection
[*260] of creditors' accounts assigned to such permittee
for collection (except by forwarding the account to a
collection agency licensed and located in the State of
Idaho) through the use of the mails of the United [**5]
States or telephone from outside the State of Idaho,
imposes an unreasonable restriction on interstate commerce
in violation of the commerce clause, Article I, Section 8,
of the Constitution of the United States.
IDAHO CODE SECTIONS AND INTERPRETATIONS CHALLENGED
HN1 Idaho Code, Section 26-2223A, reads as follows:
26-2223A. Office to be maintained in state. -- Every
permittee under this act must maintain an office in the
state of Idaho at each location for which a permit is
issued. Each office must be open to the public during normal
business hours on each business day, provided, however, that
the director may in his discretion approve a request for
opening at hours other than normal business hours or a
portion of a business day. A business day within the meaning
of this section does not include Saturdays, Sundays, or
legal holidays. Each permittee under this act must designate
a person to be personally and actively in charge of the
business carried on at any office for which a permit is
held. No office may be operated by a permittee under this
act unless the person who is personally and actively in
charge of the operation of an office doing business under
this act passes [**6] the examination for a permit required
by section 26-2229, Idaho Code, provided that persons
operating under a valid collection agency permit on July 1,
1974 shall not be required to comply with this requirement
until July 1, 1976.
HN2 Section 26-2223A requires every permittee to maintain
an office in the State of Idaho at each location for which a
permit is issued, and requires each permittee to designate a
person to be personally and actively in charge of the
business carried on at such office. The Department of
Finance has interpreted this section to require that a
collection agency permittee conduct its business from its
designated Idaho (offices). This interpretation prohibits
any collection agency from either soliciting accounts from
Idaho creditors or attempting to effect collections from
Idaho debtors from any location outside the State of Idaho ,
since business must be conducted from the location for which
a permit has been issued, and no permit will be issued for a
location outside the State of Idaho . This interpretation
also prohibits any collection agency from conducting its
business from any location within the State of Idaho for
which no permit has been issued.
[**7] The plaintiff also challenges the constitutionality
of HN3 Section 26-2242(8), Idaho Code, which reads as
follows:
26-2242. Grounds for refusal to issue license. -- A license
may be refused and, after notice and hearing, be denied,
revoked or the renewal thereof refused by the director if he
finds that the holder of or the applicant for such license:
. . .
(8) Is not a bona fide resident of this state; . . .
A "licensee" is:
any person licensed by the director who is employed by a
collection agency and whose primary function is as a
solicitor engaged in collection or receiving payment or
soliciting the receiving or collection of payment for others
of any account, bill or other indebtedness for the
collection agency.
Idaho Code, § 26-2222(7).
The license requirement is contained in Section 26-2240,
Idaho Code, which provides in part:
(1) No person shall act as a licensee of any firm, company
or person holding a permit under this act without first
obtaining a license to do so.
HN4 Article I, Section 8, of the United States Constitution
reads in pertinent part: "The Congress shall have Power . .
. To regulate commerce . . . among the several [**8] States
. . ."
[*261] ANALYSIS
HN5 The commerce clause of the United States Constitution
can erect a barrier to state action where Congress has
exercised its constitutional power to regulate commerce
among several states, and has indicated its policy to which
contrary or inconsistent state action must give way by
reason of the commerce clause and also by reason of the
supremacy clause. The commerce clause can also erect a
barrier when Congress by inaction has remained silent or has
taken no action setting forth its policy on a given subject
matter. In these latter situations a challenge or objection
to state authority would rest entirely on the "dormant"
commerce clause of Article I, Section 8, or on the
unexercised commerce power itself. The plaintiff points out
that the accepted "modern test" is stated in Pike v. Bruce
Church, Inc., 397 U.S. 137, 142, 25 L. Ed. 2d 174, 90 S. Ct.
844 (1970):
HN6 Where the statute regulates evenhandedly to effectuate
a legitimate local public interest, and its effects on
interstate commerce are only incidental, it will be upheld
unless the burden imposed on such commerce is clearly
excessive in relation to the putative local benefits. [**9]
(citations omitted) If a legitimate local purpose is found,
then the question becomes one of degree. And the extent of
the burden that will be tolerated will of course depend on
the nature of the local interest involved, and on whether it
could be promoted as well with a lesser impact on interstate
activities.
The defendant submits that the challenged statutes and the
interpretation thereof by the Department of Finance, will
pass constitutional muster under the "Pike balancing test."
The defendant argues that the instant case falls within a
third category wherein Congress enacted the Fair Debt
Collection Practices Act (hereinafter "FDCPA"), 15 U.S.C. §§
1692-1692o, which legislates in the same area regulated by
the Idaho Collection Agency Law.
HN7 The FDCPA, in Section 1692n of 15 U.S.C., contains the
following provision:
This title does not annul, alter, or affect, or exempt any
person subject to the provisions of this title from
complying with the laws of any State with respect to debt
collection practices, except to the extent that those laws
are inconsistent with any provision of this title, and then
only to the extent of the inconsistency. For purposes of
[**10] this section, a State law is not inconsistent with
this title if the protection such law affords any consumer
is greater than the protection provided by this title.
The defendant states that an express congressional
recognition of rights of states to legislate in a particular
area would be dispositive in that Congress has expressly
approved of stricter state laws in the field of collection
agency regulation; therefore, ordinary "dormant" commerce
clause analysis does not apply to such regulation and the
statutes and interpretation which are the subject of the
instant case do not contravene the commerce clause of the
United States Constitution.
However, plaintiff argues that it is a commercial collection
agency and that the FDCPA has application only to consumer
collection agencies. An analysis of the challenged statutes
and the interpretation thereof, varies depending upon
whether the FDCPA is applicable to commercial collection
agencies.
At oral argument, neither party could point to a judicial
determination of the applicable difference as between
consumer collection agency and commercial collection agency.
Thus, this issue appears to be one of first impression.
Defendant [**11] maintains that since FDCPA refers to debt
collection agencies and debt collectors, the Act applies to
the Idaho legislation in question and thus provides the
state a greater flexibility in dealing with the regulation
of debt collections than if Congress had been wholly silent
on the matter. Dun & Bradstreet counters that the
legislative history of the Act explicitly limits the
application of the Act to consumer collection agencies as
opposed to commercial collection agencies.
[*262] In reviewing the legislative history of the FDCPA,
it is apparent that the bill was intended to apply only to
consumer collection agencies:
NATURE AND PURPOSE OF THE BILL
This legislation would add a new title to the Consumer
Credit Protection Act entitled the Fair Debt Collection
Practices Act. Its purpose is to protect consumers from a
host of unfair, harassing, and deceptive debt collection
practices without imposing unnecessary restrictions on
ethical debt collectors. . . . (emphasis added)
S. Rep. No. 382, 95th Cong., 1st Sess. 1-2, reprinted in
1977 U.S. Code Cong. & Ad. News 1696.
Later, in the same Senate Report under "Explanation of the
Legislation," the report [**12] reads: "This bill applies
only to debts contracted by consumers for personal, family,
or household purposes; it has no application to the
collection of commercial accounts." Id. at 3, and 1697. The
legislative history clearly indicates that the statute was
intended to apply only to consumer debts. While this
construction of the statute may lead to some ambiguity in
that consumer and commercial debts are difficult to separate
from a legislative standpoint, the only interpretation
available to this court is that presented by Plaintiff Dun &
Bradstreet. Therefore, this court finds that the FDCPA
applies only to consumer debt collection agencies and is
therefore inapplicable to this action. The analysis of the
challenged legislation will thus proceed on the basis that
Congress has not addressed the question of commercial
collection agencies.
THE IN-STATE OFFICE REQUIREMENTS
The defendant argues that the office requirement as provided
for in Section 26-2223A and the communications requirement
set forth in the finance director's interpretation and
requirements cannot be discussed separately for if the
statute falls, the interpretation must therefore fall, and
conversely, if the [**13] in-state office requirement is
constitutionally valid, the interpretation is likewise
valid. Because two distinct questions are presented by the
in-state office requirement and the interpretation thereof,
the court will consider each question separately.
The plaintiff contends that the requirement of an in-state
office is an impermissible burden on interstate commerce and
should be declared unconstitutional. Plaintiff asserts that
the statute would be a restraint on interstate commerce as
applied and is thus per se unconstitutional. In support of
the per se unconstitutional argument, plaintiff cites
Philadelphia v. New Jersey, 437 U.S. 617, 57 L. Ed. 2d 475,
98 S. Ct. 2531 (1978), and Lewis v. BT Invest. Managers,
Inc., 447 U.S. 27, 64 L. Ed. 2d 702, 100 S. Ct. 2009 (1980).
In the alternative, plaintiff argues that if the statute
passes the constitutional per se challenge, the in-state
office requirement should be analyzed under the balancing
test set forth in Pike v. Bruce Church, Inc., 397 U.S. 137,
25 L. Ed. 2d 174, 90 S. Ct. 844 (1970), and thus declared
constitutionally impermissible.
From a study of the statute, it appears that the requirement
applies evenhandedly [**14] both to Dun & Bradstreet and
each and every other collection agency that may be operating
in the State of Idaho . It is evident that the statute
requires Dun & Bradstreet (or any other collection agency)
to maintain an office within the State of Idaho , and that
its manager must be personally familiar with correspondence
and communications that would involve Idaho debtors.
However, in Exxon Corp. v. Governor of Maryland, 437 U.S.
117, 57 L. Ed. 2d 91, 98 S. Ct. 2207 (1978), the United
States Supreme Court stated that, HN8 "the commerce clause
protects the interstate market, not particular interstate
firms, from prohibitive or burdensome regulation." Id. at
127-28. Thus, the Court does not view the statutory
requirements to be per se unconstitutional.
Since the statute is not per se unconstitutional, the
applicable test is that laid out in Pike v. Bruce Church,
Inc., 397 U.S. 137, [*263] 25 L. Ed. 2d 174, 90 S. Ct. 844
(1970). In Pike, the Court held that:
HN9 Where the [state] statute regulates evenhandedly to
effectuate a legitimate local public interest, and its
effects on interstate commerce are only incidental, it will
be upheld unless the burden imposed [**15] on such commerce
is clearly excessive in relation to the putative local
benefits. If a legitimate local purpose is found, then the
question becomes one of degree.
Id. at 142 (citations omitted). Pike thus requires a
balancing between the state's interest in the regulation and
the burden it imposes on interstate commerce.
Plaintiff asserts that Pike is indistinguishable from the
case at bar. In Pike, Arizona cantaloupe growers challenged
an Arizona law which required that all fruit grown in the
state be processed there too. In striking down the
legislation, the Supreme Court found that they "viewed with
particular suspicion state statutes requiring business
operations to be performed in the home State that could more
efficiently be performed elsewhere. Even where the State is
pursuing a clearly legitimate local interest, this
particular burden on commerce has been declared to be
virtually per se illegal." 397 U.S. at 145 (citations
omitted). Plaintiff contends that Pike is directly on point
and that it therefore controls. However, it must be noted
that the Court did not find in-state office requirements per
se illegal. It is critical to the analysis [**16] of Pike
to understand what the putative benefit of the legislation
is. The Court in Pike found that, "the impetus for the Act
was the fear that some growers were shipping inferior or
deceptively packaged produce, with the result that the
reputation of Arizona growers generally was being tarnished
and their financial return concomitantly reduced." Id. at
143. The Court in striking down the legislation held that,
"such an incidental consequence of a regulatory scheme could
perhaps be tolerated if a more compelling state interest
were involved." Id. at 146 (emphasis added). The question
thus before the court is whether Idaho 's interest in
regulating collection agencies is compelling enough to
require the incidental consequences of its regulatory
scheme.
In this situation the court finds that the putative benefit
of Idaho's regulatory scheme outweighs the incidental
consequences incurred by collection agencies and upholds
Idaho Code § 26-2223A (1977). In Pike, the putative
rationale was to protect the reputation of Arizona
cantaloupe growers. In the case at bar, the putative
rationale is to regulate collection agencies. To this end,
the policy adopted by [**17] the Idaho Legislature in
enacting Chapter 26, Title 22, Idaho Code, is to protect
Idaho debtors, be they consumer or commercial, from abusive,
unethical, and unfair practices by collection agencies.
Regulation of consumer collection agencies was deemed
important enough for the United States Congress to intervene
and pass legislation regulating consumer collection
agencies. Even though this court is unpersuaded that the
Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692-1692o
(Supp. IV 1980), is applicable in this instance, the court
finds that much of the rationale for the FDCPA is germane to
the discussion of the putative need for such legislation. As
Congress has declared:
There is abundant evidence of the use of abusive, deceptive,
and unfair debt collection practices by many debt
collectors. Abusive debt collection practices contribute to
the number of personal bankruptcies, to marital instability,
to the loss of jobs, and to invasions of individual
privacy.
15 U.S.C. § 1692(a) (Supp.IV 1980).
The court is of the opinion that the rationale contained in
FDCPA enacted by Congress applies in a commercial debt
collection setting as well. Although Congress [**18] did
limit the FDCPA to consumer debt collection, certainly
abusive, unfair, or unethical practices are not limited just
to consumer collection agencies. Regulation of commercial
debt collection practices is a sufficiently compelling state
interest to meet the [*264] Pike balancing test, and
consequently, justifies the state's adopted policy. The
court finds that the challenged statute is constitutionally
permissible.
LIMITATION ON INTERSTATE COMMUNICATION: THE INTERPRETATION
BY THE DIRECTOR OF THE DEPARTMENT OF FINANCE
The defendant argues that the director's interpretation of
Idaho Code § 26-2223A is a correct statutory construction.
The director's interpretation requires that all
communications from Dun & Bradstreet to Idaho debtors,
whether by mail or telephone, must emanate from within Idaho
. The department relies on a portion of Section 26-2223A
which requires: "Each permittee under this act must
designate a person to be personally and actively in charge
of the business carried on at any office for which a permit
is held." The department argues that by reason of the above
a significant part of the business of a collection agency
permittee is the solicitation [**19] of accounts and
collection of debts. Both of these functions involve sending
letters or making phone calls, and that if a person is to be
personally and actively in charge of the business carried on
at the office, that must mean that he is in charge of the
very important business of communicating with creditors and
debtors.
With this, the court does not agree, as this interpretation
certainly stretches a new meaning and a new concept into
what the statute actually says. By restricting the plaintiff
to initiating all communication either by letter or by phone
intrastate and thus forbidding the permittee company any
interstate communications in soliciting creditors' accounts
at least, certainly interferes with interstate commerce.
Such a statutory construction is constitutionally
impermissible as a regulation or restriction. It is not a
proper rationale, from a common sense standpoint or from a
regulatory standpoint, to so restrict the plaintiff's
communication network and coordination of its business
affairs in soliciting creditors' accounts or, for that
matter, in communicating with debtors.
RESIDENCY REQUIREMENT OF LICENSEE
Dun & Bradstreet also challenges the constitutionality
[**20] of Idaho Code § 26-2242(8) (1977). In order to
understand plaintiff's challenge of this statute, it is
necessary to read various portions of Title 26, Idaho Code.
The pertinent portions of these statutes read as follows:
HN10 26-2242. Grounds for refusal to issue license. -- A
license may be refused and, after notice and hearing, be
denied, revoked or the renewal thereof refused by the
director if he finds that the holder of or the applicant for
such license:
. . .
(8) Is not a bona fide resident of this state; . . .
The crux of plaintiff's challenge is that this statute in
requiring residency in the State of Idaho as a prerequisite
to operating a collection agency in this state imposes an
impermissible burden on interstate commerce. Plaintiff
argues that a residency requirement such as that in Idaho
Code § 26-2242(8) discriminates on its face and thus is
presumed to be unconstitutional. In support of that
argument, plaintiff cites Philadelphia v. New Jersey, 437
U.S. 617, 57 L. Ed. 2d 475, 98 S. Ct. 2531 (1978); Service
Machine & Shipbuilding Corp. v. Edwards, 617 F.2d 70 (5th
Cir.), aff'd, 449 U.S. 913, 66 L. Ed. 2d 142, 101 S. Ct. 310
(1980); [**21] Smith v. Dept. of Agriculture of the State
of Georgia, 630 F.2d 1081 (5th Cir. 1980); Dutchess
Sanitation v. Town of Plattekill, 51 N.Y.2d 670, 417 N.E.2d
74, 435 N.Y.S.2d 962 (N.Y. 1980).
However, in a close reading of Idaho Code § 26-2242(8), it
is noted that HN11 the requirement of residency of a
licensee is discretionary with the Director of the
Department of Finance. The plaintiff does not actually make
any showing that the residency requirement has in fact had
an impact or burden on either interstate commerce or upon
the plaintiff. Just as an in-state office requirement
applies evenhandedly [*265] to a permittee, so too does a
requirement of residency as a condition for the license of a
licensee, even though such residency requirement is
discretionary with the Director of the State Department of
Finance. The court is of the opinion, therefore, that the
impact of a residency requirement on the licensee is
incidental. The court makes no finding that the statute is
constitutional or unconstitutional as it applies to an
individual licensee applicant who may challenge the
residency requirement. The residency requirement is merely
incidental as it applies to Dun & Bradstreet. [**22] In
viewing the legislative scheme as a whole, the court is of
the opinion that an in-state office requirement required of
the permittee, along with a requirement that a
representative licensee be a resident of Idaho, serves a
legitimate state purpose wherein it serves to protect Idaho
debtors from unfair debt collectors and also presents a
means by which the director of finance may properly regulate
collection agencies as permittees and the representative
licensee.
IT IS THEREFORE ORDERED that plaintiff's motion for a
declaratory judgment declaring Idaho Code § 26-2223A as
unconstitutional, should be, and the same is hereby, DENIED.
IT IS FURTHER ORDERED that plaintiff's motion for a
declaratory judgment declaring that the interpretation of
the statute requiring intrastate communications and
excluding interstate communications is constitutionally
impermissible, should be, and the same is hereby, GRANTED.
IT IS FURTHER ORDERED that plaintiff's motion for
declaratory judgment declaring Idaho Code § 26-2242(8)
unconstitutional should be, and the same is hereby, DENIED.
Idaho
Idaho Collection Agency Act
ID ST § 26-2223
Chapter 22. Collection Agencies
Title 26. Banks and Banking
Chapter 22. Collection Agencies
§ 26-2221. Short title
This act shall be known as the "Idaho Collection Agency
Act."
§ 26-2222. Definitions
As used in this chapter:
(1) "Agent" means any person who is compensated on a
commission basis or by salary, or both, by any permittee and
who either contacts debtors or creditors in connection with
the collection agency business of the permittee.
(2) "Business funds" means all moneys belonging to or due
the permittee in connection with the operation of a
collection agency business.
(3) "Collection agency," "collection bureau" or "collection
office" shall be a person who engages in any of the
activities enumerated in section 26-2223, Idaho Code.
(4) "Director" means the director of the department of
finance.
(5) "Creditor" means any person who transfers to a permittee
accounts due and owing for collection purposes.
(6) "Creditors' account" means all funds due and owing a
creditor within the definition of this chapter.
(7) "Net collections" means all funds that are due to
creditors from the permittee pursuant to the contract
between the permittee and creditor, or permittee and debtor
without taking into account any offset or funds due from the
creditor to the permittee, because of the creditor having
collected any part of the account due, plus all funds that
the permittee agreed to return to debtors or that were not
to be applied to debts.
(8) "Permittee" means a person who has a permit to do
business as a collection agency, or debt counselor, or
credit counselor in Idaho .
(9) "Person" means any permittee, agent, solicitor,
individual, corporation, association, copartnership, trust,
company or unincorporated organization.
(10) "Debt counselor" means any person engaged in any of the
activities enumerated in subsection (6) of section 26-2223,
Idaho Code.
(11) "Credit counselor" means any person engaged in any of
the activities enumerated in subsection (6) or (7) of
section 26-2223, Idaho Code. No credit counselor shall be
granted a permit pursuant to this chapter unless qualified
as an exempt organization under section 501(c)(3) of the
Internal Revenue Code [FN1].
[FN1] 26 U.S.C.A. § 501.
§ 26-2223. Collection agency, debt counselor, or credit
counselor permits
No person shall without complying with the terms of this
chapter and obtaining a permit from the director:
(1) Operate as a collection agency, collection bureau,
collection office, debt counselor, or credit counselor in
this state.
(2) Engage, either directly or indirectly in this state in
the business of collecting or receiving payment for others
of any account, bill, claim or other indebtedness.
(3) Solicit or advertise for the right to collect or receive
payment for another of any account, bill, claim or other
indebtedness.
(4) Sell or otherwise distribute any system or systems of
collection letters and similar printed matter where the name
of any person other than the particular creditor to whom the
debt is owed appears.
(5) Engage in any activity which indicates, directly or
indirectly, that a third party may be involved in effecting
any collections.
(6) Engage or offer to engage in the business of receiving
money from debtors for application to or payment of or
prorating of any creditor or creditors of such debtor.
(7) Engage or offer to engage in the business of providing
counseling or other services to debtors in the management of
their debts, and contracting with the debtor to effect the
adjustment, compromise, or discharge of any account, note or
other indebtedness of the debtor.
(8) Engage or offer to engage in the business of credit
repair which includes obtaining, for others, improvements in
credit records, extensions of credit for clients, or causing
the removal of documents from the credit records of a client
maintained by a credit reporting agency.
(9) Engage or offer to engage in this state, directly or
indirectly, in the business of collecting any form of
indebtedness for that person's own account if the
indebtedness was acquired from another person and if the
indebtedness was either delinquent or in default at the time
it was acquired.
§ 26-2223A. Office to be maintained in state--Designation of
responsible person
Every permittee under this chapter must maintain an office
in the state of Idaho, staffed with at least one (1) natural
person who passed the examination required in section
26-2229, Idaho Code, or is exempt from the provisions of
this chapter pursuant to section 26-2239(1), Idaho Code, at
each branch or facility. Each permittee must have a listed
Idaho telephone number and must be open to the public during
normal business hours on each business day, provided,
however, that the director may in his discretion approve a
request for opening at hours other than normal business
hours or a portion of a business day. A business day within
the meaning of this section does not include Saturdays,
Sundays, or legal holidays. Each permittee under this
chapter must designate a natural person, who need not be a
resident of the state of Idaho , to be responsible for the
business carried on at the office and who has passed the
examination for a permit required by section 26-2229, Idaho
Code. If the person designated by the permittee to be
responsible for business carried on at the office is not
normally available in the Idaho office, then the permittee's
collection activities with debtors must begin with a written
notice to each debtor setting forth a mailing address and a
toll-free telephone number whereby a debtor may contact the
designated responsible person during normal business hours.
§ 26-2224. Form of application
Every applicant for such permit shall file in the department
of finance an application in form to be prescribed by the
director setting forth:
(1) The name of the applicant if an individual; if the
applicant is a corporation a list of its officers and
directors and their addresses; if the applicant is a
partnership a list of the partners and their addresses; or
if the applicant is a limited liability company a list of
its members or managers and their addresses. Every
corporation shall designate and appoint one (1) or more of
its officers or employees, every partnership shall designate
and appoint one (1) or more of its partners, and every
limited liability company shall designate and appoint one
(1) or more of its members or managers who shall submit to
the examination hereinafter required. No permit shall be
issued to any corporation, partnership or limited liability
company unless and until the persons so designated shall
submit to and pass the examination required by this chapter.
(2) The location of the principal office or place of
business of the applicant.
(3) Other names, if any, by which the applicant conducts,
engages in or solicits business.
(4) The names of all persons and organizations with which
the applicant is affiliated in such business, and the
location of the principal office or place of business of
each such affiliation.
(5) A complete description of the business to be conducted,
or plan of operation contemplated, by the applicant in this
state.
(6) A list of all papers and filings used by the applicant
which must accompany the application and be identified as
exhibits by number.
(7) A financial statement showing the applicant to have a
financial net worth of not less than two thousand five
hundred dollars ($2,500), which statement shall be subject
to disclosure according to chapter 3, title 9, Idaho Code.
The financial statement shall specify assets and
liabilities, providing detailed reference to each item
listed to inform the director of the nature and extent of
such assets and liabilities. This financial statement shall
be signed by the applicant or its proper agent. The net
worth shall not include any notes, accounts, bills, and
judgments held for collection by the applicant nor shall it
include good will or other assets the value of which is
speculative and not susceptible to prompt liquidation.
(8) Such other information concerning the applicant's
business as the director may reasonably require. Such
application shall be executed and verified by the applicant
or applicants personally, or by an individual associated
with the applicant as designated by the director.
§ 26-2225. Information and materials required with
application--Examination fee--Consent to service
Such application shall be accompanied by:
(1) Complete copies of all literature and circulars issued
or circulated by or on behalf of the applicant in soliciting
or advertising for business including circular and form
letters.
(2) Complete forms of all contracts designed for execution
by persons placing any account, bill, claim or other
indebtedness in the hands of the applicant for collection.
(3) Complete forms of all contracts and assignments designed
for execution by debtors making any assignments to or
placing any property with the applicant for the purpose of
paying the creditors of such debtors.
(4) Complete forms of all contracts and releases designed
for execution by creditors to whom payments are made or are
to be made by the applicant.
(5) If the applicant is a corporation or association, a copy
of its articles of incorporation or association, duly
authenticated.
(6) A list of the names and addresses of all agents who will
contact debtors or creditors or solicit business for the
applicant in this state.
(7) The names and addresses of all directors and officers,
if the applicant is a corporation or association; and the
names of the members, if the applicant is an unincorporated
company, a firm or copartnership.
(8) An agreement executed by the applicant stipulating that
no literature or form of contract not submitted with the
application will be issued, circulated or used by the
applicant prior to the filing thereof with the director.
(9) An initial examination fee as fixed by the director, but
not to exceed one hundred dollars ($100), except that no
examination fee need be paid by a nonprofit corporation or
association conducting credit counseling or debt prorating
activities.
(10) Complete copies of all literature, circulars,
contracts, and/or other related material to be circulated or
distributed by the permit holder to a debtor.
(11) An irrevocable consent to service executed by the
applicant appointing the director and his successors in
office to be attorney of the applicant to receive service of
any lawful process in any civil suit, action, or proceeding
against the applicant which arises under this act or any
rule or order hereunder. After the consent has been filed,
any service hereunder shall have the same force and validity
as if personally served on a person filing the consent. A
person who has filed such a consent in connection with a
previous registration need not file another. Service may be
made by leaving a copy of the process in the office of the
director.
§ 26-2226. False or fraudulent debt reduction and
elimination practices
(1) No person shall obtain or attempt to obtain a fee,
compensation or consideration from a person through a false
or fraudulent representation or statement that a debt, loan,
or extension of credit could or would be eliminated, reduced
or substituted, if the representation or statement is false
or misleading or has the tendency or capacity to be
misleading, or if the person making the representation or
statement does not have sufficient information upon which a
reasonable belief in the truth of the representation or
statement could be based.
(2)(a) Whenever it appears to the director that a person has
violated subsection (1) of this section, the director shall
have the powers and remedies set forth in sections 67-2754
and 67-2755, Idaho Code, as well as the powers and remedies
found in this chapter, as to any such violation.
(b) Any person who violates subsection (1) of this section
shall be subject to the criminal proceedings and penalties
set forth in sections 67-2757, 67- 2758 and 67-2759, Idaho
Code, as well as the criminal proceedings and penalties
provided in this chapter.
§ 26-2227. Repealed
§ 26-2228. Powers of the director
The director shall have the power to provide the manner and
method for conducting examinations. Applications for
examination shall be filed with the director at least ten
(10) days prior to the examination date.
The examination shall be uniformly given, may be written or
oral or a combination of both and shall be practical in
nature. The examination may include questions on
bookkeeping, credit adjusting, business law, collection
procedure, business ethics, agency, debtor and creditor
relationship, trust funds, creditors' funds, business funds,
fiduciary relationships, and the provisions of this act and
the rules duly issued by the director pursuant to this act,
and such other subject matter as the director by rule may
specify. The examination shall be given twice each year or
at such more frequent intervals as the director may direct.
§ 26-2229. Examination--Permit
(1) The director shall examine each application for a permit
and accompanying papers and investigate the qualifications
of the applicant and if he finds therefrom that the same are
in proper form, that the literature proposed to be
circulated does not tend to conceal or misrepresent any fact
to the detriment of any person dealing with the applicant,
that the contract or contracts proposed to be entered into
for the collection or payment or prorating of accounts,
bills, claims or other indebtedness by the applicant, or
prorating or receiving money for payment to creditors are
equitable, fair and reasonable, and that the applicant meets
all other requirements and qualifications of this act, he
shall examine the applicant if an individual, or the
designated officer or officers or employees of any
corporation and the designated member or members of any
partnership, in the manner described in section 26-2225,
Idaho Code, and if such applicant or designee passes a
satisfactory examination, he shall cause a permit to be
issued authorizing the applicant to conduct such a business
in this state subject to the provisions of this act, until
the fifteenth day of March next thereafter.
(2) If the director finds that the applicant does not
qualify under the provisions of this act, the application
shall be denied. If he finds the applicant is qualified he
must issue a permit upon the filing of the bonds required by
this act and the payment of an annual permit fee as fixed by
the director, but not to exceed fifty dollars ($50), except
that no permit fee need be paid by a nonprofit corporation
or association conducting credit counseling or debt
prorating activities.
(3) Contracts between collection agencies and clients shall
be in writing. No collection contract shall be deemed
equitable, fair or reasonable within the meaning of this
section which in substance either:
(a) Permits the applicant to retain any sums due the
creditor on any account, bill, claim or other indebtedness
collected for him by the applicant on account of, or as a
setoff against, any fee, commission, charge, expense or
compensation claimed, other than the regular collection fees
or commissions, to be due from such creditor on any other
account whatever.
(b) Penalizes the creditor for failure to produce evidence
in support of any account, bill, claim or item of
indebtedness placed with the applicant for collection in
addition to that delivered upon the execution of such
contract.
(c) Penalizes such creditor for any unintentional error,
mistake or omission in furnishing to the applicant the
correct name or address of any debtor.
(d) Stipulates, directly or indirectly, for the payment of
any fee, commission or compensation in excess of fifty per
cent (50%) of the amount actually collected on any account,
bill, claim or other indebtedness entrusted to the applicant
for collection, provided, however, that in the case of
interest collected by a permittee, the creditor and the
permittee by agreement between them may provide for division
of such interest between them without such percentage
limitation; and provided further that in the case of
collection of checks dishonored by nonacceptance or
nonpayment the creditor and the permittee by written
agreement between them may provide, in place of a percentage
fee, for the payment of a set dollar amount collection fee
not to exceed the amount provided in section 28-22-105,
Idaho Code, which shall not be subject to the fifty per cent
(50%) limitation. Collection agreements to proceed under
section 1-2301A, Idaho Code, shall be subject to the fifty
per cent (50%) limitation.
(4) A permit holder, engaging in the business of receiving
money from debtors for application to or payment or
prorating the account or accounts of any creditor or
creditors of such debtor, for compensation or otherwise, or
in the business of acting as the assignee for the benefit of
creditors as a primary or secondary object, shall not take
or receive for services performed by such permit holder for
any one (1) person more than fifteen per cent (15%) of the
amount received by it at any one (1) time from or on behalf
of that person for payment or prorating to creditors and no
other charges shall be made or received for any such
service.
§ 26-2229A. Requirement of fair, open and honest dealing
(1) Every permittee, foreign permittee and agent shall deal
openly, fairly, and honestly without deception in the
conduct of the collection agency business. When not
inconsistent with the statutes of this state, the provisions
of the federal fair debt collection practices act, 15 U.S.C.
section 1692, et seq., as amended, may be enforced by the
director against agents, permittees and foreign permittees
under the provisions of this chapter.
(2) In any and every instance where the permittee has a
managerial or financial interest in the creditor, or where
the creditor has a managerial or financial interest in the
permittee, disclosure of such interest must be made on each
and every contact with a debtor in seeking to make a
collection of any account, claim, or other indebtedness
where such interest or relationship exists between creditor
and permittee.
(3) No permittee, foreign permittee, or agent shall collect
or attempt to collect any interest or other charges, fees,
or expenses incidental to the principal obligation unless
such interest or incidental fees, charges, or expenses are:
(a) Expressly authorized by statute;
(b) Allowed by court rule against the debtor;
(c) Have been judicially determined; or
(d) Are provided for in a written form agreement, to be
signed by both the debtor and the permittee, and which has
the prior approval of the director with respect to the terms
of the agreement and amounts of the fees, interest, charges
and expenses.
(4) No person shall sell, distribute or make use of
collection letters, demand forms or other printed matter
which are made similar to or resemble governmental forms or
documents, or legal forms used in civil or criminal
proceedings.
(5) No person shall use any trade name, address, insignia,
picture, emblem or any other means which creates any
impression that such person is connected with or is an
agency of government.
§ 26-2230. Branch offices
(1) The director may authorize a permittee, upon request, to
conduct collection activities authorized in this chapter at
additional locations. The additional locations shall be
considered branches of the permittee. The director shall be
informed of the opening and closing of all branch locations
operated by permittees.
(2) The director may authorize a permittee, upon written
request, to conduct limited collection activities at
locations other than the principal location of the permittee
or branches. The facilities may be at the domiciles of the
agents employed by the permit holder. Collection activities
at facilities shall be limited to telecommunications with
creditors, clients, debtors, and the permittee's offices and
branches. The director shall be informed of the opening and
closing of all facility locations operated by permittees.
§ 26-2231. Renewal of permit
Upon application postmarked on or before the fifteenth day
of March of each year, the holder of any permit issued under
the provisions of this chapter shall be entitled to have
such permit renewed for the succeeding calendar year upon
payment of the annual permit fee as fixed by the director,
but not to exceed fifty dollars ($50.00), compliance with
the bond requirements of this chapter, the filing of a
financial statement in the form required by section
26-2224(7), Idaho Code, showing a net worth of at least two
thousand five hundred dollars ($2,500) for each place of
business for which a permit is sought, filing of all other
documents required by section 26-2224, Idaho Code, and
approval by the director of all literature to be employed by
the permittee during the course of the business year, except
no annual permit renewal fee need be paid by a nonprofit
corporation or association conducting credit counseling or
debt prorating activities.
§ 26-2232. Bonds
Upon approval of the application and prior to the issuance
of the permit the applicant must file in the department of
finance two (2) bonds. Both bonds shall be in a form
provided by the attorney general of this state, and shall be
executed by the applicant as principal and by some surety
company authorized to do business in this state as surety,
and shall be for the term of any permit issued to the
applicant. Each permittee shall be required to have the two
(2) bonds for each permit as hereinafter provided. In lieu
of the bonds required by this section, a certificate of
deposit issued by an Idaho bank and made payable to the
director may be provided to the director in the same
principal amount as required for bonds. The interest on the
certificate of deposit shall be payable to the permittee.
The certificate of deposit shall be maintained at all times
during which the permittee is authorized to do business
under Idaho law, and must provide that it will remain in
effect for at least three (3) years following discontinuance
of operations, unless released earlier by the director when
all statutory requirements have been met.
(a) A bond shall be executed to the state of Idaho in the
sum of fifteen thousand dollars ($15,000) or upon renewal in
such larger sum as hereinafter provided. In any case where a
permittee or its representatives has failed to account for
and pay over the proceeds of any collection made or money
received for payment or prorating to creditors, or has
failed to return to a debtor any sum received that was not
to be applied to his debts, the creditor or debtor shall
have in addition to all other legal remedies a right of
action in his own name on such bond without the necessity of
joining the permittee in such action. The bond shall be
continuous in form and shall remain in full force and effect
for the permit period. The surety may cancel the bond
provided that the surety shall in such event provide the
permittee and the director with notice thirty (30) days
prior to cancelation of said bond. Such notice shall be by
registered or certified mail with request for a return
receipt and addressed to the permittee at its main office
and to the director. In no event shall the liability of the
surety for any and all claims against the bond exceed the
face amount of such bond.
Upon renewal of any permit, the permittee shall supply the
director with a statement of the preceding year's net
collections. The amount of the bond upon renewal shall be in
the amount of fifteen thousand dollars ($15,000), or two (2)
times the average monthly net collections for the preceding
year computed to the next highest one thousand dollars
($1,000), whichever sum is greater, up to a maximum of one
hundred thousand dollars ($100,000).
(b) A bond shall be executed to the state of Idaho in the
sum of two thousand dollars ($2,000), which shall be limited
to the indemnification of the department of finance for any
and all expenses incurred as a result of investigations,
administrative proceedings, and prosecutions which shall be
instituted by the director against a permittee or licensee
pursuant to this act. The bond shall be continuous in form
and remain in full force and effect and run concurrently
with the permit period and any renewal thereof. The surety
may cancel the bond provided that the surety shall in such
event provide the permittee and the director with notice
thirty (30) days prior to cancelation of said bond. Such
notice shall be registered or certified mail with request
for a return receipt and addressed to the permittee at its
main office and to the director. In no event shall the
liability of the surety for any and all claims against the
bond exceed the face amount of such bond.
§ 26-2232A. Alternate Bonding
(1) A debt counselor or credit counselor which holds a valid
permit under this chapter and is engaged in the activities
described in section 26-2223(6) or 26-2223(7), Idaho Code,
may, upon approval of the director of the department of
finance, supply the director, upon renewal of its permit, in
lieu of the bond required in section 26-2232(a), Idaho Code,
a bond in the minimum amount of ten thousand dollars
($10,000) or two (2) times the average monthly net of
unremitted funds received from debtors for the preceding
year, computed to the next highest one thousand dollars
($1,000), whichever is greater.
(2) Such bonds shall be subject to the same conditions and
requirements as the bond set forth in section 26-2232(a),
Idaho Code, and shall be in addition to the bond required by
section 26-2232(b), Idaho Code.
(3) Application for approval by the director of the
department of finance shall be on a form provided by the
director and shall include such information as the director
shall require.
(4) A credit counselor applicant shall furnish with the
application a certified copy of applicant's determination as
an exempt corporation under section 501(c)(3) of the
Internal Revenue Code, made by the district director of
internal revenue, or in the subsequent renewal of its permit
and bond, evidence of continuance of its exempt
determination by the district director of internal revenue.
(5) Upon approval by the director of the department of
finance of the alternate bond and so long thereafter as the
credit counselor or debt counselor service shall continue
operations under the alternate bond herein provided for, it
shall furnish to the director of the department of finance,
not later than the fifteenth day of March of each year, a
statement containing the following information:
(a) The amount of net unremitted funds received from debtors
it held on the first day of each calendar month which was
collected or received in any prior month or months showing
the exact month received and the amount for such month.
(b) The amount of money received during each calendar month
from debtors.
(c) The amount of money remitted to creditors or returned to
debtors during each calendar month.
(d) The moneys, fees, or commissions retained from the
moneys received during each calendar month.
(e) The amount of net unremitted funds due creditors or
debtors at the end of each calendar month.
(6) For the purposes of this section money or moneys
remitted shall mean money which has actually been conveyed
or transferred to the creditor or debtor or his designated
agent by physical transfer of cash or by certified or
cashier's check or other means so that actual ownership of
such funds shall have passed to the creditor or debtor or
his agent and no right or interest shall remain in the
credit counseling service. A check or bank draft issued but
not actually paid, without recourse shall not constitute a
remittance.
(7) At any time that the director of the department of
finance shall deem that the alternate bond provided for in
this section shall be inadequate he may withdraw and cancel
approval for the "in lieu" bond and require the bond
provided in section 26-2232(a), Idaho Code, or cancel or
suspend the permit of the consumer credit counseling service
as provided in section 26-2236, Idaho Code.
§ 26-2233. Permittee accounts required
A permittee shall in its own name:
(1) Establish and maintain a separate trust account for
deposit and remittance of creditors' funds in a financial
institution, the deposits of which are insured by the
federal deposit insurance corporation.
(2) Establish and maintain a separate business account for
the business funds and moneys in a financial institution,
the deposits of which are insured by the federal deposit
insurance corporation.
§ 26-2234. Investigations, records and payment of funds
(1) The director or his duly authorized representatives may
make an annual examination, or more frequently in the
director's discretion, of the place of business of each
permittee and foreign permittee and for that purpose the
director shall have free access to the offices and places of
business, books, creditors' accounts, trust accounts,
business accounts, records, papers, files, safes and vaults
of all such permittees.
(2) The director may, upon his own motion, and shall, upon
the sworn complaint in writing of any person, investigate
the action of any person or persons claimed to have violated
the provisions of this chapter, and for that purpose the
director shall have free access to the offices and places of
business, books, creditors' accounts, trust accounts,
business accounts, records, papers, files, safes and vaults
of all such persons.
(3) Every permittee and foreign permittee shall execute to
the director an agreement of consent to examination of any
and all bank accounts of the permittee providing the
director with authority to make such examination at any time
the director, in his discretion, deems it to be in the
public interest.
(4) The cost of examination for the first annual examination
each year and any investigation shall be paid to the
director by each permittee so examined or investigated and
the director may maintain an action for the recovery of such
costs against the permittee or against the surety providing
the bond to indemnify the state for such expenditures as
required by this chapter. The cost shall be fixed annually
by the director, but shall not exceed twenty-five dollars
($25.00) per examination hour.
(5) Each permittee shall acknowledge in writing each account
received for collection and shall maintain a record of such
account, make a permanent record of all sums collected by
him and of all disbursements made by him. Every permittee
shall keep and preserve all records relating to accounts
received for collection, collections, receipts, and disposal
or disbursement of all creditors' funds for a period of five
(5) years after the final disposition of any account. It
shall be unlawful for any person to intentionally make any
false entry, omit to make a necessary entry, mutilate,
secrete away, destroy or otherwise dispose of any record
mentioned in this subsection, provided a record may be
disposed of after the five (5) year period heretofore
provided.
(6) Every permittee shall, within thirty (30) days after the
close of each calendar month, pay to his creditors the net
proceeds of all collections made by the permittee during
said calendar month. Each permittee shall report to the
creditor all collections made by him and/or any payments
made to the creditor within thirty (30) days after the close
of each calendar month.
(7) Every permittee shall maintain his books and records in
accordance with generally accepted accounting practices
subject to such rules and regulations as adopted by the
director.
(8) The director, may impound the creditors' accounts, or
trust accounts of any permittee if it shall be deemed in the
general public interest.
§ 26-2235. Denial, suspension, revocation of permit
(1) An application for a permit may be denied and, after
notice and hearing, a permit may be suspended or revoked, by
the director if he finds that the holder of or the applicant
for, or any member or manager of an applicant or holder, or
any officer or manager of an applicant or holder of such
permit:
(a) has violated any provision of this chapter or any rule
or order of the director authorized under this chapter; or
(b) is not legally qualified to do business in this state;
or
(c) has violated any contract or agreement of a type
mentioned in this chapter; or
(d) has failed, refused, neglected, on demand, to pay or
remit to any client the agreed portion of any sum collected
by the permittee on any bill, claim, account or other
indebtedness entrusted to such permittee for collection; or
(e) has failed to return to a debtor an amount that was not
to be paid on his debts; or
(f) has made a material misstatement in the application for
such permit or renewal; or
(g) has obtained or attempted to obtain a permit or renewal
by fraud or misrepresentation; or
(h) has misappropriated or converted to his own use or
illegally withheld moneys collected or held for any other
person; or
(i) has without properly qualifying as herein provided
represented himself as a permittee for the purpose of
soliciting for or representing any business covered in this
chapter; or
(j) has been convicted of, found guilty of, pled guilty to,
or has received a withheld judgment by a court of competent
jurisdiction for forgery, embezzlement, fraud, obtaining
money under false pretenses, larceny, extortion, conspiracy
to defraud or other like offense, any theft offense, a crime
involving moral turpitude, or violating any provision of
this chapter or is currently disbarred from the practice of
law in any state; provided, the director may, in his
discretion, issue a permit to any person convicted of any of
the above enumerated crimes providing a period of five (5)
years has elapsed from the date of his conviction, finding
of guilty, plea of guilty, or withheld judgment; or
(k) has had a permit revoked, canceled, or denied; or
(l) owes outstanding, unpaid, delinquent and undisputed
accounts or judgments.
(2) The director, after notice and hearing, may impose a
civil penalty of not more than one thousand dollars ($1,000)
for each violation upon any permittee found to have violated
any provision of this chapter.
(3) Permits shall be issued hereunder only to persons who
are, and to partnerships, firms, companies, and associations
whose members and managers are, and to corporations whose
managers are over twenty-one (21) years of age.
(4) The director may, after notice and hearing, impose any
sanction authorized by this section on a permit holder if
the director finds that an agent of the permit holder has
violated any provision of section 26-2229A, Idaho Code.
(5) The director may, in his discretion, and by an order
issued in accordance with chapter 52, title 67, Idaho Code,
prohibit permit holders from utilizing an individual as an
agent if the individual has participated in a violation of
this act, or any similar statute of another state.
§ 26-2236. Subpoenas
The director shall have the power to issue subpoenas and
bring before him any person, book, or writing in this state,
to swear witnesses and to take the testimony of any person
by deposition, with the same fees and mileage and in the
same manner as prescribed by law in judicial procedure in
district courts of this state in civil cases. Any party to a
proposed revocation or suspension of a permit shall have the
right of subpoena to compel the attendance of witnesses and
produce all books and writing on his behalf. In case any
witness shall fail or refuse to comply with a subpoena to
appear before the director, the clerk of the district court
of the county in which the administrative proceedings are
held shall, upon demand of the director, issue a subpoena
reciting the demand therefor and summoning the witness to
appear and testify at a time and place fixed; and violation
of such subpoena or disobedience thereto shall be deemed and
punished as a violation of any other subpoena issued from
the district court. Any revocation or suspension of any
permit or license provided for by this chapter shall be
governed by chapter 52, title 67, Idaho Code.
§ 26-2237. Fees--Disposition of funds
All fees provided for in this chapter shall be paid to the
director and by him remitted to the state treasurer pursuant
to section 59-1014, Idaho Code, and all such funds shall be
deposited to the credit of the finance administrative
account in the state dedicated fund.
§ 26-2238. Violations--Penalties
Any person who shall do business within the state of Idaho
as defined in this act, without a permit, or any permit
holder who fails to establish and maintain a separate trust
account for such creditors' funds for each permit which he
holds, or fails to make and keep the records required by
this act, shall be guilty of a felony and punishable by a
fine not exceeding five thousand dollars ($5,000) or by
imprisonment in the state penitentiary for not more than
five (5) years, or both, and any person who shall fail to
comply with any of the other provisions of this act shall be
guilty of a misdemeanor.
§ 26-2239. Exemptions
The provisions of this chapter shall not apply to the
following:
(1) Any attorney-at-law duly authorized to practice in this
state;
(2) Any regulated lender as defined in section
28-41-301(37), Idaho Code, nor any subsidiary, affiliate or
agent of such a regulated lender to the extent that the
subsidiary, affiliate or agent collects for the regulated
lender;
(3) Any trust company authorized to do business in this
state;
(4) Any federal, state or local governmental agency or
instrumentality;
(5) Any real estate broker or real estate salesman licensed
under the laws of and residing within this state when
engaged in the regular practice of a real estate business;
(6) Any abstract and title companies doing an escrow
business;
(7) Any mortgage company to the extent that such mortgage
company is engaged in the regular business of a mortgage
company as defined in section 26-2802, Idaho Code;
(8) Any court appointed trustee, receiver or conservator;
(9) Any telephone corporation, as defined in subsection (10)
of section 62- 603, Idaho Code, whose initial request for
payment on behalf of such telephone corporation or on behalf
of another person is made by the telephone corporation as a
part of regular telecommunications billings to its customers
and at a time before the account, bill, claim or other
indebtedness becomes past due or delinquent;
(10) A 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 does so only for persons to whom he is so
related or affiliated and if the principal business of such
person is not the collection of debts.
§ 26-2240. Agent identification--Quarterly notice--Fee
Each permit holder shall, with its initial application and
each annual renewal, file with the director a list of all
agents including the name of the agent and any other
identifying information the director may require. A fee of
twenty dollars ($20.00) for each listed agent shall
accompany the list. The director shall be notified in
writing of any additions to the agent list no less often
than every calendar quarter. A fee of twenty dollars
($20.00) shall be filed with the director for each
additionally identified agent in the quarterly notification
of additions to a permit holder's agent list. An agent is
not required to be listed, nor the fee paid therefor, unless
the agent acted for the permit holder for more than five (5)
business days.
§§ 26-2241, 26-2242. Repealed by S.L. 1997, ch. 370, § 9
§§ 26-2241, 26-2242. Repealed by S.L. 1997, ch. 370, § 9
§ 26-2243. Property right in accounts--Practice of law
prohibited
A permit holder shall have a property right in any account
assigned to it for collection; provided, however, no right
herein granted shall authorize such permit holder to engage
in the practice of law.
§ 26-2244. Cease and desist orders, penalty
(1) Whenever it appears to the director that it is in the
public interest, he may order any person to cease and desist
from acts, practices, or omissions which constitute a
violation of this chapter.
(2) Whenever, after notice and a hearing, the director finds
that any person has violated any provision of this chapter,
the director may order the person to cease and desist from
acts, practices or omissions which constitute a violation of
this chapter and:
(a) Impose a civil penalty of not more than two thousand
five hundred dollars ($2,500) for each violation upon any
person found to have violated any provision of this chapter;
(b) Issue an order restoring to any person in interest any
consideration that may have been acquired or transferred in
violation of this chapter; or
(c) Issue an order that the person violating this chapter
pay costs, which in the discretion of the director may
include an amount representing reasonable attorney's fees
and reimbursement for investigative efforts.
§ 26-2245. Director's power to enjoin violations
(1) Whenever it appears to the director that any person, or
employee or agent thereof, has engaged in or is about to
engage in any act or practice or omission constituting a
violation of any provision of this chapter, or any rule or
order hereunder, he may in his discretion bring an action in
any court of competent jurisdiction to enjoin any such acts
or practices and to enforce compliance with this chapter or
any rules hereunder. Upon a showing that a person, or
employee or agent of any person, has engaged in or is about
to engage in an act or practice constituting a violation of
this chapter or any rule or order hereunder, a permanent or
temporary injunction, or restraining order shall be granted
and a receiver or conservator may be appointed for the
defendant's assets. The director shall not be required to
furnish bond.
(2) In addition to the foregoing, the director, in his
discretion and upon a showing in any court of competent
jurisdiction that a person has violated the provisions of
this chapter or rule or order hereunder, may be granted the
following additional remedies:
(a) An order restoring to any person in interest any
consideration that may have been acquired or transferred in
violation of this chapter;
(b) An order that the person violating this chapter, rule or
order hereunder, pay a civil penalty to the department in an
amount not to exceed two thousand five hundred dollars
($2,500) for each violation;
(c) An order allowing the director to recover costs, which
in the discretion of the court may include an amount
representing reasonable attorney's fees and reimbursement
for investigative efforts;
(d) An order granting other appropriate remedies upon a
proper showing.
§ 26-2246. Discontinuance of operations--Requirements
(1) Before discontinuance of operations as a collection
agency under the terms of this act, every permittee shall
furnish the director with proof in a form to be determined
by the director that:
(a) Proper remittance has been made to all creditors or
claimants of money collected.
(b) All accounts have been returned to the creditors and
certification to that effect has been provided to the
director.
(c) All valuable papers and assignments of judgment given to
the permittee by the creditor [creditors] in connection with
claims have been returned to the creditor [creditors].
(d) All judgments obtained by the collection agency against
debtors, in the agency's name, have been returned and
assigned to the creditors.
(2) Any permittee discontinuing doing business as a
collection agency shall maintain the bonds required of such
permittee to conduct a collection agency business until a
final accounting has been made to the director and approved
by him.
§ 26-2247. Institution of criminal proceedings
The director may refer such evidence as may be available
concerning violations of this act or of any rule or order
hereunder to the attorney general or the proper prosecuting
attorney, either of whom may in his discretion, with or
without such a reference, institute appropriate criminal
proceedings under this act.
§ 26-2248. Administration of act
The administration of the provisions of this act shall be
under the general supervision and control of the director,
subject to chapter 52, title 67, Idaho Code. The director
may from time to time make, amend, and rescind such rules,
regulations and forms necessary to carry out the provisions
of this act. No rule, regulation or form may be made unless
the director finds that the action is necessary or
appropriate for the public interest or for the protection of
creditors and debtors consistent with the purpose of this
act.
§ 26-2249. Judicial review of final orders of director
Any person aggrieved by a final order of the director may
obtain judicial review of that order pursuant to the
provisions of chapter 52, title 67, Idaho Code.
§ 26-2250. Foreign permittees
(1) Notwithstanding any other provision of this chapter, if
a permittee meets the conditions of subsection (2) of this
section, it shall be exempt, as a foreign permittee, from
the requirements that it maintain an agent or office in this
state.
(2) To be a foreign permittee, a collection agency must:
(a) Be qualified to do business in the state of Idaho ;
(b) Be the holder of a valid permit or license to do
business as a collection agency in the state where it has
its principal place of business, or holds a license in
another state if the state where its principal place of
business is located does not require licenses to operate
collection agencies;
(c) Certify in its application for a permit and each annual
renewal that it will not solicit any creditor client which
has its principal place of business in this state;
(d) Maintain a bond substantially similar, as determined by
the director, to the bond required by subsection (b) of
section 26-2232, Idaho Code;
(e) Maintain no agent or place of business in this state;
(f) Conduct its business in this state exclusively by mail
or telecommunications; and
(g) Maintain its books and records in accordance with
generally accepted accounting practices. The director or his
duly authorized representatives may make an annual
examination, or more frequent in the director's discretion,
of the principal place of business of a foreign permittee
outside the state of Idaho, and for that purpose the
director shall have free access to the offices and places of
business, books, creditors' accounts, trust accounts,
business accounts, records, papers, files, safes and vaults
of all such permittees. The actual cost of examination for
the first annual examination each year and any investigation
shall be paid to the director by each permittee so examined
or investigated. The director may maintain an action for the
recovery of such costs against the foreign permittee.
(3) The director shall examine each application for a
foreign permit hereunder in the manner provided in section
26-2229, Idaho Code, and if the applicant is found to be
qualified under the provisions of this chapter, shall cause
a permit to be issued authorizing the applicant to conduct a
business in this state as a foreign permittee. An applicant
who has been issued a foreign permit pursuant to this
chapter shall be known as a "foreign permittee." If the
director finds that the applicant does not qualify under the
provisions of this chapter, the application shall be denied.
(4) The failure of a permittee to comply with the provisions
of this section shall constitute grounds for denial,
revocation or suspension of a foreign permit pursuant to
section 26-2235, Idaho Code.
§ 26-2251. Cancellation of permit
Any permittee or foreign permittee failing to apply in a
timely manner for renewal of a permit shall have said permit
canceled effective the day following the last day for
renewal applications to be filed. Engaging in collection
agency business with a canceled permit shall be a violation
of the provisions of this chapter. To restore a canceled
permit the fee shall be two hundred dollars ($200). A
canceled permit may be restored only before the expiration
of six (6) months following the date of annual renewal.
§ 26-2252. Repealed
Current through all 2007 laws of the First Regular Session
of the 59th Legislature, Chs. 1-358 that are effective on or
before Apr. 11, 2007.
END OF DOCUMENT
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