State Issues

Legislative and regulatory issues facing the credit and collection industry at the state level.

The credit and collection industry is strictly regulated by existing and overlapping state laws and regulations as well as state common law. New legislative and regulatory proposals are introduced each year that could change these guidelines and drastically affect the way the industry operates.

The following issues are those of greatest concern to ACA International and its members.

Comments Regarding Proposed Rule Implementing New In-state Office Requirements in Colorado
ACA filed comments in May 2010 responding to rule changes proposed by the Administrator for the Colorado Fair Debt Collection Practices Act implementing Colorado House Bill 10-1222 which is effective July 1, 2010. The legislation requires a collection agency's in-state office to accept payments physically made at the office for any debt the agency is attempting to collect and imposes additional special text requirements.

Comments Regarding Rule Proposed by New York City Dept. of Consumer Affairs
ACA filed comments in June 2009 responding to a rule proposed by the New York City Department of Consumer Affairs implementing Local Law No. 15 which goes into effect July 16, 2009. The proposed rule address issues concerning verification of debt, collection of time-barred debt, settlement agreements, and record retention requirements.

Comments Regarding New York Legislation
ACA filed comments in May 2009 for a public hearing organized by a number of Assembly standing committees of the New York State Legislature to consider how the State can best protect consumers from unfair and deceptive practices in debt collection and debt management industries. The comments address a number of issues, including but not limited to, licensing of debt collectors and asset buyers, debt collection and asset buying collection practices, collection of time-barred debt, civil procedure for debt collectors and asset buyers.

Active v. Passive Asset Buyers
ACA supports the reasonable licensure of asset buyers who purchase charged-off receivables and directly engage in the collection of those receivables with the consumer.

Data Security
ACA believes any new legislation governing data security and access to personal information should work in conjunction with existing law and not place additional burdens on the industry.

Collection of Time-Barred Debt
Collection of Time-Barred Debt - Supplemental Comments
ACA filed comments in February 2009 with the New Mexico Attorney General's Office in response to a regulatory proposal affecting the collection of time-barred debt in New Mexico. ACA filed supplemental comments in response to a revised proposal in June 2009.

Identity Theft
ACA supports reasonable regulations to detect, mitigate and prevent consumer identity theft without imposing unreasonable burdens and barriers on the credit and collection industry.

Licensing
ACA recognizes state and local governments have a legitimate interest in protecting consumers by imposing licensure of debt collectors, but is committed to ensuring the credit and collection industry is allowed to operate in interstate commerce.