Regulatory Alerts2009-07-28
Department Policy Concerning Pre-Judgment Settlement Agreements Under Idaho Code § 26-2229A(4)(d)
The Idaho Department of Finance issued Policy Statement 2007-6 to clarify how collection agency licensees may legally include interest, fees, or costs in pre-judgment settlement agreements under Idaho Code § 26-2229A(4)(d). Licensees are permitted to enter such settlements without prior departmental approval provided they maintain written records proving the agreement was delivered to the debtor and the total amount does not exceed the principal, court filing fees, accrued interest, and legally permitted third-party costs. This policy supersedes previous guidance and establishes that compliance is verified through licensee record retention rather than mandatory submission of individual settlement documents to the Department.
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