Utah Debt Collection Bill Takes Effect

compliance and regulations written on two bindersThe bill, which took effect May 3, addresses provisions related to bond requirements, term limits and more.

05/10/2023 9:30 A.M.

1 minute read

A bill abolishing specific provisions related to collection agencies was just passed in Utah last week. These provisions took effect on May 3, 2023, 60 days after the end of the legislative session.

Among other items, the bill repeals provisions addressing:

  • Registration and bond requirements;
  • The terms, amount and condition of bonds;
  • Requirements to retain records of registrations and bonds;
  • Penalties for violations;
  • Designations and limits on assignments; and
  • Application requirements, including application fees.

The measure does not, however, remove the section of Title 12 of the Utah Code that deals with the restrictions and conditions of collection fees levied by creditors and convenience fees levied by third-party debt collection firms.

Read the bill here.

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