STATEMENT OF PURPOSE
RS26456
The purpose of this legislation is to add a provision to allow collection agencies to collect incidental charges
included in the contract between the creditor and the debtor. Additionally, the legislation makes the licensing
process for collection agents, debt counselors, credit counselors, and credit repair entities similar to other
entities licensed by the Idaho Department of Finance by requiring the use of a nationwide system of licensing
and allowing for reinstatement of expired applications. Further, the legislation creates a Collection Agency
Recovery Fund to allow reimbursement to persons to whom an Idaho court awards actual damages resulting
from acts constituting violations of this chapter by a collection agent, debt counselor, credit counselor, or
credit repair organization. To pay for the recovery fund, all licensees will have to pay a fee of two hundred
fifty dollars ($250) for home office locations and one hundred dollars ($100) for each branch office, but
to offset the recovery fund fee the bonding requirement for licensees is eliminated. Finally, the legislation
provides for the creation, by rule, of an industry advisory board.
FISCAL NOTE
The proposed legislation does not alter license application fees collected by the Department from licensees or
license applicants and does not alter the application of the Act's licensing requirements to entities conducting
covered activities in Idaho. There will be no impact to the General Fund.
Contact:
Anthony Polidori
Department of Finance
(208) 332-8060
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note S1007


Statutes affected:
Bill Text: 26-2222, 26-2224, 26-2228, 26-2229A, 26-2231, 26-2232, 26-2232A, 26-2237
Engrossment 1: 26-2222, 26-2224, 26-2228, 26-2229A, 26-2231, 26-2232, 26-2232A, 26-2237