Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1134, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require collection agencies to disclose in the initial written and oral communications to the debtor the required fair debt collection practices notice, and in subsequent communications that the communication is from a debt collector. This measure also exempts these disclosure requirements in formal pleadings made in connection with a legal action.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs, Hawaiian Collectors Association Inc., Credit Association of Maui Ltd., Select Consulting Services, Hawaiian Collectors Assn., Inc., and ten private citizens.

Your Committee finds that for unsophisticated debtors, the collection process can be a confusing one. In many instances, debtors may not recognize the legal name of their creditors and may disregard the initial notice as a mistake. Thus, your Committee believes that clear disclosures consistent with fair debt collection practices notice to debtors informing them that collection efforts are being made will help clarify this confusing process.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1134, H.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.