FINAL BILL REPORT

SB 5956

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: Collection agencies are prohibited from engaging in certain practices when attempting to collect debts. A collection agency cannot threaten a debtor with impairment of the debtor's credit rating if a claim is not paid. Credit agencies cannot harass a debtor. Certain behaviors are presumed to be harassment, including:

communicating with a debtor more than three times in a single week;
communicating with a debtor at the debtor's place of employment more than one time in a single week; or
communicating with a debtor or spouse at his or her residence between 9:00 p.m. and 7:30 a.m.

Collection agencies are required to provide a debtor with an itemization of the amounts the collection agency will seek to collect on the claim. This information, along with other required information, must be included in the first claim notice sent to the debtor. If a debtor disputes a claim in writing, the collection agency must forward a copy of the dispute to the credit reporting bureau.

Current law provides that collection agencies may not send any telegram or make any telephone calls to a debtor or concerning a debt or for the purpose of demanding payment of a claim or seeking information about a debtor, for which the charges are payable by the addressee or by the person to whom the call is made. Senate bill 5574, which passed during the 2011 regular session, prohibits collection agencies from sending any telegram or making any telephone calls to a debtor or concerning a debt or for the purpose of demanding payment of a claim or seeking information about a debtor, with a limited exception for calls to cell phones.

Votes on Final Passage:

First Special Session

Senate	42	0
House	86	0