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 Posted: Sat Jul 12, 2008 9:50 am Subject: Debt Collectors and Licenses |
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If your state requires them to have a license, and even though on their letter it says that they have a license, can you ask for proof that they do have a license?
I know it might be a longshot but do you think it will work? And can it be part of the validation?
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EatPurpleCookies
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| Posted: Sat Jul 12, 2008 11:28 am Subject: |
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Yes, you can always ask for proof they have legal right to engage in Debt Collection in your state. You also can contact the state agency charged with Licensing and verify for yourself if they have a license.
One thing to be careful of though. Some states allow reciprocal licensing agreements. This means that they will recognize a debt collection agency from another state as licensed if that agencies home state does the same.
For example a Collection agency licensed in Ohio can collect in Illinois even though they aren't actually licensed in Illinois because Illinois and Ohio recognize each others licensing. Similarly an Illinois Agency can collect in Ohio in the same manner.
An example from the Illinois Compiled Statutes:
| Quote: | (225 ILCS 425/4) (from Ch. 111, par. 2007)
(Section scheduled to be repealed on January 1, 2016)
Sec. 4. No collection agency shall operate in this State, directly or indirectly engage in the business of collecting, solicit claims for others, have a sales office, a client, or solicit a client in this State, exercise the right to collect, or receive payment for another of any account, bill or other indebtedness, without registering under this Act except that no collection agency shall be required to be licensed or maintain an established business address in this State if the agency's activities in this State are limited to collecting debts from debtors located in this State by means of interstate communication, including telephone, mail, or facsimile transmission from the agency's location in another state provided they are licensed in that state and these same privileges are permitted in that licensed state to agencies licensed in Illinois.
(Source: P.A. 88‑363; 89‑387, eff. 1‑1‑96.) |
As always, it is highly recommended to check your own state laws to learn and understand the provisions and how they may or may not affect your situation.
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LCW
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| Posted: Sat Jul 12, 2008 11:33 am Subject: |
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yes, It can, and should be part of the validation process, or can be done under separate communication.
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LCW
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| Posted: Mon Jul 14, 2008 10:32 am Subject: |
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OK! I think I might have a case here.
I took up both of your advices and did some online research and it seems that the company as well as the employees NEED to be licensed under MN law to be able to collect a debt although I could be wrong.
| Quote: | 332.33 Licenses. Subdivision 1. Requirement. Except as otherwise provided in this chapter, no person shall conduct within this state a collection agency or engage within this state in the business of collecting claims for others as defined in sections 332.31 to 332.45, without having first applied for and obtained a collection agency license. A person acting under the authority of a collection agency, as a collector, must first obtain a Minnesota collector license. A licensed collector may use one additional assumed name only if the assumed name is registered with and approved by the commissioner.
332.31, Subd. 3. Collection agency. "Collection agency" means and includes any person engaged in the business of collection for others any account, bill or other indebtedness except as hereinafter provided. It includes persons who furnish collection systems carrying a name which simulates the name of a collection agency and who supply forms or form letters to be used by the creditor, even though such forms direct the debtor to make payments directly to the creditor rather than to such fictitious agency.
Subd. 6. Collector. "Collector" is a person acting under the authority of a collection agency under subdivision 3, and on its behalf in the business of collection for others an account, bill, or other indebtedness except as otherwise provided in this chapter.
Subd. 7. Exempt out-of-state collection agency. "Exempt out-of-state collection agency" means a collection agency that has no physical presence in this state, that is engaged in the business of collecting claims on behalf of creditors that have no physical presence in this state, and that only conducts business within this state by means of interstate communications including telephone, mail, and facsimile transmission.
332.32 Exclusions. The term "collection agency" shall not include persons whose collection activities are confined to and are directly related to the operation of a business other than that of a collection agency such as, but not limited to banks when collecting accounts owed to the banks and when the bank will sustain any loss arising from uncollectible accounts, abstract companies doing an escrow business, real estate brokers, public officers, persons acting under order of a court, lawyers, trust companies, insurance companies, credit unions, savings associations, loan or finance companies unless they are engaged in asserting, enforcing or prosecuting unsecured claims which have been purchased from any person, firm, or association when there is recourse to the seller for all or part of the claim if the claim is not collected. |
Now, would they still have to have a license? The collections itself didn't sign for an Exempt form, so they would have to have their collectors licensed correct?
Now, I am going to print out the employee list that has been licensed under this particular Collection Agency and see if they say anything different. If so, can I take them to small claims court? Of course, the printed page wil have the date and time of the surch and the names of employees on it.
Eek. I'm a bit excited but not holding my breath for replies on this one.
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| Posted: Tue Jul 15, 2008 8:20 am Subject: |
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I understand that, although just because the state say that they can be exempt doesn't mean that they are. They still have to fill out the necessary paperwork to actually become exempt.
In any case, I still haven't found the agents on the list.
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