Regulatory Alerts2020-06-25
Authorized Use of Pre-Judgment Settlement Agreements Pursuant to the Idaho Collection Agency Act
The Idaho Department of Finance issued Guidance Statement 2020-08-CFB to clarify that licensed collection agencies may enter into pre-judgment settlement agreements without prior director approval under Idaho Code §26-2229A(4)(d). To comply, licensees must ensure the agreement is documented in writing, the settlement amount does not exceed principal, court fees, accrued interest, and actual third-party costs, and all records are retained for regulatory review. This guidance serves as an agency interpretation of existing law rather than a new legal requirement, aiming to facilitate mutually agreed-upon settlements that avoid litigation costs.
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