Regulatory Alerts2014-08-26
Guidance to Collection Agencies Operating in Idaho
The Idaho Department of Finance issued this guidance to clarify compliance requirements for collection agencies following the Idaho Supreme Court's decision in Medical Recovery Services, LLC v. Strawn. The document establishes that the principal obligation is limited to the cost of services provided, meaning all other charges such as attorney fees are incidental and prohibited unless they meet specific statutory exceptions. Additionally, the guidance reiterates that debt buyers are subject to the Idaho Collection Agency Act but may qualify for a no-action position regarding licensing if they strictly avoid direct consumer contact and litigation.
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