Title 25, Professions And Occupations

§443B-1 Definitions. As used in this chapter: "Client" means a person who offered or extended credit which created a debt, or to whom a debt is owed, and who engages the professional services of a collection agency. The term does not include any person who receives an assignment …

§443B-10 Reports and payments by agency. Every collection agency shall, within thirty days after the close of each calendar month, report and pay to its clients the net amount due to each client out of all collections made during the preceding calendar month. In the event the gro…

[§443B-10.5] Fiduciary responsibility. Each collection agency shall be considered a fiduciary with respect to its clients and shall keep and disburse funds collected on its client's behalf in strict compliance with any agreement made with a client and with all applicable laws. [L…

[§443B-11] Action on collection agency bond. If a collection agency has failed to account for and pay over the proceeds of any collection made, the client shall have, in addition to all other legal remedies, a right of action in the client's own name on the bond given pursuant to…

[§443B-12] Remedies not exclusive. The remedies provided for in this chapter are in addition to and not exclusive of any other remedies provided by law. [L 1987, c 191, pt of §1]

[§443B-13] Jurisdiction of courts. The various district courts of the State shall have concurrent jurisdiction with the circuit courts in all criminal prosecutions for violations of this chapter. [L 1987, c 191, pt of §1]

§443B-14 Penalties. Any violation of this chapter is punishable by a fine of not more than $5,000 per violation. Any officer, agent, or employee of a collection agency who personally participates in any violation of this chapter by the collection agency shall be subject to penalt…

§443B-15 Threats or coercion. No collection agency shall collect or attempt to collect any money or other forms of indebtedness alleged to be due and owing by means of any threat, coercion, or attempt to coerce, including any conduct which is described as follows:

[§443B-16] Harassment and abuse. No collection agency shall oppress, harass, or abuse any person in connection with the collection of or attempt to collect any claim alleged to be due and owing by that person or another in any of the following ways:

[§443B-17] Unreasonable publication. No collection agency shall unreasonably publicize information relating to any alleged indebtedness or debtor, in any of the following ways:

§443B-18 Fraudulent, deceptive, or misleading representations. No collection agency shall use any fraudulent, deceptive, or misleading representation or means to collect, or attempt to collect, claims or to obtain information concerning a debtor or alleged debtor, including any c…

[§443B-19] Unfair or unconscionable means. No collection agency shall use unfair or unconscionable means to collect or attempt to collect any claim in any of the following ways:

§443B-2 Powers and duties of the director. In addition to any other powers and duties authorized by law, the director shall:

[§443B-20] Unfair competition, unfair or deceptive acts or practices. A violation of this chapter by a collection agency shall constitute unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce for the purpose of section 480…

[§443B-21] Severability. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect the other provisions or applications of the chapter which can be given effect without the invalid provision or applic…

§443B-3 Registration required. (a) No collection agency shall collect or attempt to collect any money or any other forms of indebtedness alleged to be due and owing from any person who resides or does business in this State without first registering under this chapter. (b) Regist…

§443B-3.5 Designation as exempt out-of-state collection agency; limitations on business practices; fees; disciplinary action. (a) A collection agency that is not registered as a collection agency in the State may apply for designation as an exempt out-of-state collection agency b…

[§443B-4] Application for registration. The director shall prescribe the form of the application for registration. Each application shall be accompanied by the appropriate fees and the bond or bonds required by section 443B-5. [L 1987, c 191, pt of §1]

[§443B-4.51] Certificate of registration. Each certificate of registration shall be in a form prescribed and signed by the director, and shall be issued in the name of the department. [L 1990, c 246, pt of §1]

§443B-4.52 Notice of termination of business. (a) Not less than sixty days before a collection agency terminates its business operations in the State, the registrant shall transmit a statement to the director and to each of the agency's clients indicating: (b) If the registrant i…

[§443B-4.53] Termination of business and surrender of certificate of registration. Within ten days after termination of the business, the registrant shall surrender the certificate of registration to the director. [L 1990, c 246, pt of §1]

[§443B-4.54] Notification of change. Every collection agency shall notify the director in writing of any material change at any time during the application process or the period of registration. [L 1990, c 246, pt of §1]

[§443B-4.55] Single act; evidence of practice. Evidence that a collection agency has committed any act which is prohibited by this chapter shall be sufficient to justify the remedies set forth in this chapter, without proof of a general course of conduct. [L 1990, c 246, pt of §1…

[§443B-4.56] Transfer of registration. No registration, including the rights, privileges, and obligations thereof, shall be assigned, sold, leased, encumbered, or otherwise transferred, voluntarily or involuntarily, directly or indirectly, including by transfer of control of any …

§443B-4.57 Fine, revocation, suspension, termination, denial of registration, renewal of registration, or restoration of registration. In addition to any other actions authorized by law, the director may fine any agency, revoke or terminate any registration, suspend the right of …

[§443B-4.58] Biennial renewal requirement. (a) Each collection agency shall renew its registration by June 30 of each even-numbered year. (b) When renewing its registration, an agency shall submit to the director the following: (c) Failure on the part of a collection agency to re…

§443B-4.59 Restoration of forfeited registration. (a) A forfeited registration may be restored by submitting an application provided by the director and by paying a delinquent renewal fee and a restoration fee in the amount specified by rule. (b) Failure to restore a forfeited re…

[§443B-4.60] Collecting without a registration. Any collection agency whose registration has been terminated but continues to conduct business as a collection agency shall be engaging in an unregistered activity, and any agency so engaged, and any employee or agent of the agency …

[§443B-4.62] Audits. (a) When the director has reasonable cause to believe that a registrant created deficiencies or other problems in accounts which hold funds or other forms of payment collected on behalf of a complainant, the director may order an audit of the account or accou…

[§443B-4.63] Furnishing deceptive forms. It is unlawful for any person who is not a registered collection agency to design, compile, or furnish any form knowing that the form could be used to create a belief in a debtor that the person who designed, compiled or furnished the form…

§443B-5 Bond. (a) Each collection agency shall file and maintain with the director a bond in the penal sum of $25,000 for the first office in this State and $15,000 for each additional office in this State. (b) All bonds required by this section shall be issued by a surety compan…

[§443B-6] Place of business; principal collector. (a) A collection agency shall have and maintain a regular active business office in the State for the purpose of conducting collection agency business. The business office shall be open to the public during stated reasonable busin…

§443B-8 Manner in which records, funds, and other forms of indebtedness are to be kept by collection agencies. (a) Every collection agency shall keep and maintain a permanent record or have immediate access to copies of the permanent record of all funds and other forms of indebte…

§443B-9 Collection, attorney's, or commission fees; exception. (a) A collection agency shall not collect, or attempt to collect, any collection fee or attorney's fee or commission from any debtor; provided that an attorney's fee or commission may be collected after filing of a su…