32-1055

32-1055. Unlawful acts

A. It is unlawful for a person to conduct a collection agency in this state without
having first applied for and obtained a license under this chapter.

B. A collection agency licensed under this chapter shall not directly or indirectly
aid, abet or receive compensation from an unlicensed person. Nothing in this chapter
shall prevent a licensed agency from accepting, as forwardee, claims for collection from
a collection agency or attorney whose place of business is outside this state.

C. A licensee shall not advertise a claim for sale or threaten to so advertise a
claim as a means of endeavoring to enforce payment, nor shall a licensee agree to do so
for the purpose of soliciting claims. This subsection shall not be deemed to affect a
licensee acting as assignee for the benefit of a creditor or acting under a court order.

D. It is unlawful for a person conducting a collection agency in this state to:

1. Fail to render an account of and pay to the client for whom collection has been
made the proceeds collected, less collection charges as agreed to by the person and the
client, within thirty days from the last day of the month in which the proceeds were
collected. If the amount due the client is less than five dollars, payment may be
deferred for an additional thirty days.

2. Fail to deposit with a local depository all monies collected by the person and
due to the person's clients, and to fail to keep these monies deposited until these
monies or equivalent amounts are remitted to the person's clients. Notwithstanding this
paragraph, if a person conducting a collection agency does not maintain an office in this
state, the person may deposit and keep these monies in a depository in a state where the
person maintains the person's principal office.

3. Fail to keep a record of monies collected and the remittance of these monies.

4. Fail to notify the department within ten days of any change of name under which
the person does business as a collection agency or address at which the person conducts
business.

5. Aid or abet, directly or indirectly, any person, persons or organizations in
evading or violating any of the provisions of this chapter.