HOUSE BILL REPORT

HB 2801

BYRepresentatives Forner, Vekich, Smith, Cole, Walker, Bowman, Leonard, Prentice, Fuhrman, May, Brough, Ferguson, Betrozoff, Winsley, Chandler, Wolfe, Horn, Moyer, Brumsickle, Silver, Nealey, Youngsman, Miller and Wood

Clarifying the definition of collection agencies.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Vekich, Chair; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, Prentice, Walker and Wolfe.

House Staff:Jim Kelley (786-7166)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 2, 1990

BACKGROUND:

Collection agencies are regulated by statute.  A "collection agency" is 1) anyone who solicits claims for collection or who collects claims owed or asserted to be owed to another person; 2) any person who furnishes or sells forms represented to be a collection system or scheme; or 3) anyone who in attempting to collect his or her own claim uses a fictitious name.  A "collection agency" is not an individual soliciting or collecting claims on behalf of his or her employer.  A "collection agency" also is not a person whose collections are carried on in his or her true name and are confined to the operation of a business other than that of a collection agency.  Several occupations are specifically declared not to be collection agencies.

There is no exception made for accountants and bookkeepers who on behalf of a client prepare and mail monthly statements of accounts payable when all payments are made to the client and no additional collection efforts are made by them.

SUMMARY:

SUBSTITUTE BILL:  The definition of "collection agency" specifically excludes any person who on behalf of a client prepares and mails monthly or periodic statements of accounts due if all payments are made to the client and no other collection efforts are made by the person.

"Statement of account" means a report issued by a creditor setting forth only the amounts billed, credit given, aged balance due, and no other information.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill defines "statement of account" and adds technically correct language.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Cynthia Jones, Department of Licensing.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The department supports this bill.

House Committee - Testimony Against:      None.