SB 2724 Summary

• Converts consumer collection agency regulation from registration to licensing system under the Office of Financial Regulation, with $400 license fees and 2-year license validity periods.

• Requires consumer collection agencies to obtain $100,000 surety bonds and submit fingerprints of applicants, debt collectors, and control persons during licensure and renewal.

• Increases administrative penalties from $1,000 to up to $25,000 per violation and extends the statute of limitations for civil actions from 2 to 5 years; removes the 2-year limitation on administrative enforcement actions.

• Establishes grounds for license denial, suspension, or revocation including criminal convictions, violations of federal Fair Debt Collection Practices Act, misappropriation of funds, and unfair/deceptive practices; prohibits agencies with two license revocations from obtaining new licenses.

• Creates new enforcement mechanisms including authority to remove individuals from debt collection business, conduct investigations with broad record access, and expand Attorney General authority against out-of-state debt collectors; upgrades criminal penalty from first-degree misdemeanor to third-degree felony for unlicensed operation.