Regulatory Alerts2020-06-25
Debt Buyers and Application of the Idaho Collection Agency Act
The Idaho Department of Finance issued Guidance Statement 2020-07-CFB to clarify that debt buyers are subject to the Idaho Collection Agency Act because they indirectly engage in debt collection. The agency interprets that unlicensed debt buyers may avoid licensing requirements only if their activities are strictly passive and meet five specific conditions, including using only licensed entities for collection and refraining from direct consumer contact or credit reporting. This guidance serves as an agency interpretation of existing law rather than a new legal requirement, ensuring compliance with Idaho's financial market integrity standards.
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