REPORT TITLE:
Collection Agencies


DESCRIPTION:
Amends collection agency regulations to conform to federal
standards.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2918
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO COLLECTION AGENCIES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 443B-18, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§443B-18[]]  Fraudulent, deceptive, or misleading
 
 4 representations.  No collection agency shall use any fraudulent,
 
 5 deceptive, or misleading representation or means to collect, or
 
 6 attempt to collect, claims or to obtain information concerning a
 
 7 debtor or alleged debtor, including any conduct which is
 
 8 described as follows:
 
 9      (1)  The use of any company name while engaged in the
 
10           collection of claims other than the true name of the
 
11           collection agency;
 
12      (2)  The failure to disclose clearly in [all written
 
13           communication] the initial written and oral
 
14           communication made to collect, or attempt to collect, a
 
15           claim or to obtain, or attempt to obtain, information
 
16           about a debtor or alleged debtor that the collection
 
17           agency is attempting to collect a claim and that any
 
18           information obtained will be used for that purpose;
 
19      (3)  Any false representation that the collection agency has
 
20           in its possession information or something of value for
 

 
Page 2                                                     2918
                                     H.B. NO.           
                                                        
                                                        

 
 1           the debtor or alleged debtor that is made to solicit or
 
 2           discover information about the debtor or alleged
 
 3           debtor;
 
 4      (4)  The failure to disclose clearly the name and full
 
 5           business address of the person to whom the claim has
 
 6           been assigned for collection or to whom the claim is
 
 7           owed at the time of making any demand for money;
 
 8      (5)  Any false representation or implication of the
 
 9           character, extent, or amount of a claim against a
 
10           debtor or alleged debtor, or of its status in any legal
 
11           proceeding;
 
12      (6)  Any false representation or false impression that any
 
13           collection agency is vouched for, bonded by, affiliated
 
14           with, or an instrumentality, agent, or official of,
 
15           this State or any agency of federal, state, or local
 
16           government;
 
17      (7)  The use or distribution or sale of any written
 
18           communication which simulates or is falsely represented
 
19           to be a document authorized, issued, or approved by a
 
20           court, an official, or any other legally constituted or
 
21           authorized authority, or which creates a false
 
22           impression about its source, authorization, or
 
23           approval;
 

 
Page 3                                                     2918
                                     H.B. NO.           
                                                        
                                                        

 
 1      (8)  Any representation that an existing obligation of the
 
 2           debtor or alleged debtor may be increased by the
 
 3           addition of attorney's fees, investigation fees,
 
 4           service fees, and any other fees or charges when in
 
 5           fact the fees or charges may not legally be added to
 
 6           the existing obligations; or
 
 7      (9)  Any false representation or false impression about the
 
 8           status or true nature of, or the services rendered by,
 
 9           the collection agency or its business."
 
10      SECTION 2.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 3.  This Act shall take effect upon its approval.
 
13 
 
14                       INTRODUCED BY:  ___________________________