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REFERENCE TITLE: collection agencies; unlawful acts |
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State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
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HB 2628 |
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Introduced by Representative McCune Davis
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AN ACT
amending sections 32-1055 and 32-1056, Arizona Revised Statutes; relating to collection agencies.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-1055, Arizona Revised Statutes, is amended to read:
32-1055. Unlawful acts
A. It is unlawful for a person to conduct a collection agency in this state without having first applied for and obtained a license under this chapter.
B. A collection agency licensed under this chapter shall not directly or indirectly aid, abet or receive compensation from an unlicensed person. Nothing in this chapter shall prevent a licensed agency from accepting, as forwardee, claims for collection from a collection agency or attorney whose place of business is outside this state.
C. A licensee shall not advertise a claim for sale or threaten to so advertise a claim as a means of endeavoring to enforce payment, nor shall a licensee agree to do so for the purpose of soliciting claims. This subsection shall not be deemed to affect a licensee acting as assignee for the benefit of a creditor or acting under a court order.
D. It is unlawful for a person conducting a collection agency in this state to:
1. Fail to render an account of and pay to the client for whom collection has been made the proceeds collected, less collection charges as agreed to by the person and the client, within thirty days from the last day of the month in which the proceeds were collected. If the amount due the client is less than five dollars, payment may be deferred for an additional thirty days.
2. Fail to deposit with a local depository all monies collected by the person and due to the person's clients, and to fail to keep these monies deposited until these monies or equivalent amounts are remitted to the person's clients. Notwithstanding this paragraph, if a person conducting a collection agency does not maintain an office in this state, the person may deposit and keep these monies in a depository in a state where the person maintains the person's principal office.
3. Fail to keep a record of monies collected and the remittance of these monies.
4. Fail to notify the department within ten days of any change of name under which the person does business as a collection agency or address at which the person conducts business.
5. Aid or abet, directly or indirectly, any person, persons or organizations in evading or violating any of the provisions of this chapter.
6. Bring suit or initiate an arbitration proceeding against the debtor or otherwise attempt to collect on a debt if the person knows or reasonably should know that the applicable statute of limitations expired, the debt was discharged in bankruptcy, the debt was paid or otherwise settled or the debt is illegal under federal or state laws.
E. A violation of the fair debt collection practices act (15 United States Code sections 1692 through 1692p) or the servicemembers civil relief act (50 appendix United States Code sections 501 through 597b) is an unlawful act under this chapter.
Sec. 2. Section 32-1056, Arizona Revised Statutes, is amended to read:
32-1056. Violation; classification
A. A person operating a collection agency without a license shall be guilty of a class 1 misdemeanor.
B. A licensee violating the provisions of section 32‑1055 or the rules and regulations adopted pursuant to this chapter shall be subject to revocation of license and shall be guilty of a class 1 misdemeanor.
C. A violation of section 32-1055 or the rules adopted pursuant to this chapter is an unlawful act or practice pursuant to section 44-1522. The attorney general may investigate the act or practice and take appropriate action pursuant to title 44, chapter 10, article 7.