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The Utah Debt Collection Practices Act Protects You

In order to operate a collection agency in Utah, the company must be registered with the Division of Corporations and Commercial Code and have a $10,000 bond on file with the state.

The Utah Division of Corporations and Commercial Code keeps a record of all collection agency registrations and bonds filed with it, with the names, places of residence, and places of business of the principals and sureties, and the name of the officer before whom the bond was executed or acknowledged. Those records are open to public inspection.

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More Details About The Law You Should Know:

    Any person, member of a partnership, or officer of any association or corporation who fails to comply with the requirements for registration and bonding of collection agencies in Utah is guilty of a class A misdemeanor.

    These rules do not apply to attorneys licensed to practice in Utah, national banks, banks or trust companies incorporated under Utah law, or title insurance agencies and producers licensed under the Utah Insurance Code.

    Any collector having complied with the provisions of these laws, may receive accounts, bills or other indebtedness, take assignments for the purpose of collections, and at the direction of the assignor bring suit as assignee. However, all accounts shall be within the statute of limitations if suit is filed. All legal processes, pleadings, and court representations shall be prepared and conducted by a duly licensed attorney, and a copy of summons and complaint, in all cases, shall be served on defendants.

    Information about the credit rating or credit worthiness of a consumer supplied to a consumer reporting agency by a collection agency as defined under the Fair Debt Collection Practices Act, 15 U.S.C. Sec. 1692 et seq., that does not have a bond on file with the Utah Division of Corporations and Commercial Code as required under these laws, is void on its face.

    A creditor may require a debtor to pay a collection fee in addition to any other amount owed to the creditor for a debt if it is not prohibited or otherwise restricted by another federal or state law; the creditor contracts with a third party debt collection agency or licensed attorney to collect the debt; the third party debt collection agency with which the creditor contracts is registered under these Utah laws; there is a written agreement between the creditor and the debtor that creates the debt and provides for the imposition of the collection fee; and the obligation to pay the collection fee is imposed at the time of assignment of the debt to a third party debt collection agency or licensed attorney.

    The amount of the collection fee may not exceed the lesser of the actual amount a creditor is required to pay a third party debt collection agency or licensed attorney or 40% of the principal amount owed to the creditor for a debt. An obligation to pay a collection fee imposed under this section is in addition to any obligation to pay attorney fees that may otherwise exist.

    We encourage you to download a copy of the Fair Debt Collection Practices Act by filling out the form above. If debt collectors are calling you. Call us.

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In addition to rules covering the actions of creditors and collection agencies under your state’s laws, the Fair Debt Collection Practices Act (FDCPA) provides rules protecting consumers from illegal actions of debt collectors, and it applies equally in every state. This means that even if your state laws cannot help you, the FDCPA applies in many more situations.

In fact, certain sections of the laws listed in the available download may have been redacted for brevity.

If you want to find out more about how these laws pertain to your specific situation, please call us at (877) 846-1209 for a free case review with an experienced consumer law attorney. If you prefer, fill out our free case review form and we will contact you.