Every week, the licensing specialists of Cornerstone Support are interacting with regulators in all 50 states, hundreds of collection agencies, and other industry professionals across the country. One of the many benefits of this constant communication is that we are quickly aware of new legislation that is passed or even simply being discussed. There are currently several states that are developing new legislation that, if passed, will directly affect licensing and registration for agencies, attorneys, and debt buyers all over the country. We’ve compiled the latest info below on several jurisdictions so that you can be prepared for the pending changes ahead.
Florida
Florida S.B. 2724 has been proposed, which would require an application to be submitted to the Office of Insurance Regulation. The application would be required to include everything from business and residential addresses to branch addresses to fingerprints for all control persons. Read the bill in its entirety at http://www.flsenate.gov/cgi-bin/view_page.pl?Tab=session&Submenu=1&FT=D&File=sb2724.html&Directory=session/2010/Senate/bills/billtext/html/
South Carolina
South Carolina H. 4228 currently sits in the House Committee on Labor, Commerce, and Industry. If passed, the state will establish debt collection licensing requirements. The proposed enactment date is 9-1-10. To track the progress of this bill, go to http://www.scstatehouse.gov/sess118_2009-2010/bills/4228.htm.
New York
New York S.B. 7071 has been proposed by Senator Eric Schneiderman to the Senate Consumer Protection Committee. If passed, it will require debt collection agencies to be licensed by the state, will require bonding, and will allow for penalties as well. As the bill stands now, it will take effect 180 days after being passed into law. To track this bill, go to http://assembly.state.ny.us/leg/?default_fld=&bn=SB7071%09%09&Summary=Y&Text=Y
West Virginia
West Virginia H.B. 4308 is currently being considered for legislation. This bill would broaden the definition of “debt collector” to include any private debt collection agencies, public agencies engaged in debt collection, and the employees of any public or private debt collection agency. It also proposes increased criminal penalties for fraudulent or misleading collection activities. Read the full bill at http://www.legis.state.wv.us/bill_Status/bills_text.cfm?billdoc=hb4308%20intr.htm&yr=2010&sesstype=RS&i=4308
