There are some major changes happening with the Arizona Department of Financial Institutions.

Here’s what you need to know:

1. Arizona has transitioned to NMLS to manage Collection Agency Licenses.

Each company holding an AZDFI Collection Agency License who wishes to manage their license on NMLS must create a company record in the system, both for the company itself and for each branch holding an AZDFI Collection Agency License. NMLS will annually charge a processing fee of $100 per company license, and $20 per licensed branch location renewed through the system. There is no processing fee for submitting a new application or transitioning an existing license onto NMLS.

All forms must be received by January 31, 2017.

NMLS is a secure web-based system created by state regulators to provide efficiencies in the processing of state licenses and to improve supervision of state-regulated industries. Through NMLS, companies maintain a single record which they use to apply for, maintain, renew, and surrender license authorities in one or more states.

View the transition checklist: AZ_Collection_Agency_License-Company-Transition-Checklist.pdf

It’s important that current licensees have the appropriate transition number available when completing and submitting their company form so they are not charged a new application fee.

More information about NMLS can be found on the NMLS Resource Center.

2. A 60-day approval is now required for any ownership changes.

The new Arizona State checklist says an ownership change now requires 60-day prior approval. Be proactive and prepared!

3. Arizona will no longer accept paper documents for changes.

It’s imperative (and mandatory) that you update all forms and transition to NMLS as Arizona will no longer accept any paper documents for changes.

If you have any questions about the recent changes, feel free to call us.

Idaho – Major improvements to Collection Agent Filing Process

The Idaho Department of Finance and Access Idaho have made MAJOR improvements in the way Idaho Collection Agency Licensees will report their agents that will significantly reduce their efforts in meeting this requirement.  Beginning with the September 2016 filing, all agents and RPICs will be listed under the licensed home/main office.  This includes new and terminated agents for quarterly filings, and will include ALL agents for the annual filing in March. Previously, agents were reported by work location which resulted in multiple reports that had to be filed.  The reporting steps for filing reports have not changed—the only change is that now licensees will file all information requirements in one report instead of several.

This change was done to simplify the reporting process over the long term and to help reduce the regulatory burden on our licensees.  Access Idaho and Department staff are excited to launch these improvements sooner than was expected and we appreciate your patience during this transition period.  Please direct any questions to [email protected] or to 208-332-8002.

The “Go Live” date for the new Agent Reporting was 8/22/2016.

Massachusetts – Notice of Debt Collection Informational Session on September 22, 2016

The Massachusetts Division of Banks (Division) and the Massachusetts Office of the Attorney General are seeking input on the current state of debt collection and debt collection regulation within the Commonwealth.  The Division and the Office of the Attorney General are considering whether changes to the statutory and regulatory framework regarding debt collection may be warranted.  Read more

New Jersey – Statute of Limitations reduced to 4 years for collections of retail credit card debt

An August 30 article from the Daily Digest of AccountsRecovery.net reported that the Appellate Division of the State of New Jersey Superior Court ruled on August 29 that the statute of limitations for collections of retail credit card debt should be one governing the sale of a good (4 years) rather than the one governing contractual claims, including general purpose credit cards (6 years).  

Wyoming will be transitioning to NMLS for all license applications and renewal activities. This will also result in an increase in the license renewal fee. Please see the letter from the State of Wyoming Department of Audit for the Division of Banking for more details.

Wyoming transition to NMLS

Recent information from the office of the Iowa Attorney General that addresses specific requirements for creditors and debt collectors.

Creditor/Assignees:

All creditors who engage in consumer credit transactions in Iowa are subject to the Iowa Consumer Credit Code (ICCC). These creditors, or assignees that purchase their transactions, must file notification with the ICCC Administrator and pay the required fees. The Attorney General serves as the ICCC administrator.

The ICCC requires all creditors and assignees to pay an annual notification fee of $10.00. Creditors/assignees who own the paper for consumer credit transactions must also pay a volume fee based on the average unpaid balance of all consumer credit transactions. The volume fee is $10.00 for every $100,000 of average unpaid balances on all Iowa consumer credit transactions. The purpose of assessing these fees is to ensure that all creditors and assignees contribute to the cost of enforcing the ICCC, and the law stipulates that all fee money collected be put to that use.

Creditors and Assignees required to file notification with the Iowa Attorney General must do so within 30 days of commencing collection activities in Iowa, and then by January 31 of every subsequent year. With the exception of new filers, notifications received more than 30 days after the due date will be assessed a $25.00 late fee.

Debt Collectors:

Iowa does not license debt collectors. However, debt collectors who collect over $25,000 a year (all accounts, not just Iowa accounts) are required to file notification with the Attorney General of Iowa and pay a $10 annual fee.

Our office vigorously enforces the Iowa Debt Collection Practices Act. We strongly urge all debt collectors to become familiar with this law and to consult with private legal counsel, as necessary, before beginning collection activities in Iowa.

Debt collectors who fail to file notification with the Office of the Attorney General and pay the appropriate fee may be subject to late fees of $25, as well as a possible civil action in which the administrator may recoup interest, the costs of the action, and a penalty not exceeding the greater of $1,000 or three times the fee owed.

Debt Collectors required to file notification with the Iowa Attorney General must do so within 30 days of commencing collection activities in Iowa, and then by January 31 of every subsequent year. With the exception of new filers, notifications received more than 30 days after the due date will be assessed a $25.00 late fee.

How to File:

Online: You can file online and pay the $10.00 annual registration fee and any applicable volume fees (if any) through our website, www.iowaattorneygeneral.gov; under the “For Businesses” section. This system does not allow payment via credit card. The online payment option requires filers to enter bank account information to establish an automatic debit. Filers paying by auto-debit will be charged a $1.00 convenience fee.

By Mail: If you prefer, you can fill out the printable form along with a check. Checks should be made payable to “Iowa Consumer Credit Administration Fund” and sent, along with the completed Creditor/Assignee Notification Printable Form* to:

Office of the Attorney General of Iowa
Consumer Protection Division
Attn: Notification & Fees Administrator
1305 E. Walnut St.
Des Moines, IA 50319-1016

Email: [email protected]

*Additional documents are not required.

Entities who have filed notification by mail with the Office of the Attorney General will not receive a confirmation, notice or hard copy license. Only those filing with rejected notifications will be notified by our staff. Those filing online will receive automatic confirmation notice upon completion.

Much more information regarding the ICCC can be found on our website www.iowaattorneygeneral.gov under the “For Businesses” section.

The Colorado Attorney General’s Office announced that the website address required to be listed on initial debt collection communications has been updated.

Colorado law requires collection agencies to include a disclosure in initial communications with consumers that includes the website address for the Colorado Attorney General’s Office. The Colorado Attorney General’s Office announced the address change in a recent e-mail sent to Colorado licensees. Notably, the text of the state statute requiring the disclosure (see below) has not been amended and still currently lists the old website address for the Attorney General’s office. However, the statute specifically stipulates that “[I]f the website address is changed, the notification shall be corrected to contain the correct address.”

The text of the statute, as listed in the Colorado Revised Statutes states:

In its initial written communication to a consumer, a collection agency shall include the following statement: “FOR INFORMATION ABOUT THE COLORADO FAIR DEBT COLLECTION PRACTICES ACT, SEE WWW.AGO.STATE.CO.US/CADC/CADCMAIN.CFM.” If the website address is changed, the notification shall be corrected to contain the correct address. If the notification is placed on the back of the written communication, there shall be a statement on the front notifying the consumer of such fact.

Current Required Text

With the announcement of the new website, the required disclosure in debt collection notices must be updated to the following text:

“FOR INFORMATION ABOUT THE COLORADO FAIR DEBT COLLECTION PRACTICES ACT, SEE WWW.COAG.GOV/CAR.”

Other Changes

Along with the new website address, the Attorney General’s Offices also recently went through a change in its e-mail systems. All new e-mail addresses now coincide with the new website and end in @coag.gov. Additionally, the regulator made a slight change to its main licensing and registration e-mail address, which is now listed as:
[email protected] – (please note the change from “cab” to “car”).

The old e-mail addresses will only reroute to the new e-mail system for a limited time; therefore, it is best to update your records now to ensure proper delivery of any e-mails sent to the regulator.