Regulatory Alerts2020-06-25
Idaho Department of Finance Guidance Statement 2020-09-CFB Regarding Collection Activities Relative to Medical Recovery Services LLC v. Strawn
The Idaho Department of Finance issued Guidance Statement 2020-09-CFB to clarify that collection agencies must strictly adhere to the Idaho Supreme Court's ruling in Medical Recovery Services, LLC v. Strawn regarding the Idaho Collection Agency Act. The guidance mandates that the principal obligation is limited to the cost of services provided, rendering all other charges such as attorney fees and late fees incidental and uncollectible unless they meet specific statutory exceptions. Licensees are required to substantiate the legal basis for collecting any incidental charges and are advised to consult legal counsel before attempting to collect amounts beyond the principal debt.
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