§443B-1  Definitions.  As used in this
chapter:



"Client" means a person who offered
or extended credit which created a debt, or to whom a debt is owed, and who
engages the professional services of a collection agency.  The term does not
include any person who receives an assignment or transfer of a debt in default
solely for the purpose of facilitating collection of a debt for another.



"Collection agency" means any person,
whether located within or outside this State, who by oneself or through others
offers to undertake or holds oneself out as being able to undertake or does
undertake to collect for another person, claims or money due on accounts or
other forms of indebtedness for a commission, fixed fee, or a portion of the
sums so collected.



"Collection agency" includes:



(1)  Any person using any name other than the person's
own in collecting the person's own claims with the intention of conveying, or
which tends to convey the impression that a third party has been employed;



(2)  Any person who, in the conduct of the person's
business for a fee, regularly repossesses any merchandise or chattels for
another; and



(3)  Any person who regularly accepts the assignment
of claims or money due on accounts or other forms of indebtedness and brings
suits upon the assigned claims or money due on accounts or other forms of
indebtedness in the person's own name; provided that any suits shall be
initiated and prosecuted by an attorney who shall have been appointed by the
assignee.



"Collection agency" does not include licensed
attorneys at law acting within the scope of their profession, licensed real
estate brokers, and salespersons residing in this State when engaged in the
regular practice of their profession, nor banks, trust companies, building and
loan associations, savings and loan associations, financial services loan
companies, credit unions, companies doing an escrow business, individuals
regularly employed on a regular wage or salary in the capacity of credit
persons or in other similar capacity for a single employer who is not a
collection agency, nor any public officer or any person acting under an order
of court.



"Communication" means directly or
indirectly conveying information regarding a debt to any person by any means.



"Debt" means any obligation or alleged
obligation of a consumer to pay money or other forms of payment arising out of
a transaction in which the money, property, insurance, or services, which are
the subject of the transaction, are primarily for personal, family, or
household purposes, whether or not such obligation has been reduced to
judgment.



"Debtor" means any person or the
person's spouse or reciprocal beneficiary, parent (if the person is a minor),
guardian, executor, or administrator obligated or allegedly obligated to pay a
debt.



"Department" means the department of
commerce and consumer affairs.



"Director" means the director of
commerce and consumer affairs.



"Material change" means any change of
circumstance which might affect a collection agency's registration, including
the assigning, selling, leasing, encumbering, or other transfer of the rights,
privileges, and obligations of a collection agency, whether voluntarily or
involuntarily or directly or indirectly, including by transfer of fifty-one per
cent of control of any collection agency, whether by change in ownership or
otherwise.



"Principal collector" means an
individual who has been designated by a collection agency to assume
responsibility for the operations and activities of the agency's office in this
State.



"Regularly repossesses" means to
locate, confiscate, and return merchandise or chattels to a client whenever the
client requires service.



"Regular practice" means duties being
of the sort or kind that are expected, ordinary, or typical of the profession.



"Regular wage or salary" means the
expected, ordinary, or typical payment for employment. [L 1987, c 191, pt of
§1; am L 1989, c 140, §2 and c 266, §3; am L 1990, c 246, §2; am L 1992, c 12,
§1 and c 202, §58; am L 1997, c 383, §61; am L 1999, c 254, §3]



 



Case Notes



 



  Kentucky-based company that contracted with the Hawaii
medical services association (HMSA) to provide subrogation and "claims
recovery services" was a "collection agency" within the meaning
of this section, and subject to the registration requirements of §443B-3, where
company was collecting "claims" that HMSA had against plaintiffs--money
that company alleged was "due and owing".  117 H. 153, 177 P.3d 341.