Idaho Updates Requirements for Collection Agency Licensees

Idaho recently enacted a bill, House Bill 610 (HB 610), that updates certain licensing requirements for collection agencies. The changes made by HB 610 will go into effect on July 1, 2022.

HB 610, in part, removes the requirement that collection agency licensees designate a person responsible for the collection activities carried on at each office of the licensee. Additionally, pursuant to this bill, an incomplete license application will be deemed withdrawn if the licensee receives a written deficiency notice and then does not provide the requested information within 60 days of receipt of the notice.  The bill also adds a provision that specifically permits a collection agency to collect interest or fees that are expressly authorized by the underlying agreement (unless prohibited by law).  However, HB 610 clarifies that “no person shall collect any attorney’s fees or litigation costs unless such attorney’s fees or litigation costs are reasonable, are for actual attorney services performed, and are limited to those costs actually incurred.”  Moreover, the bill changes the deadline for license renewals from March 15 to December 31.