SB 438

This bill allows an employee of a licensed collection agency to work from the

employee's home and clarifies that, in doing so, the employee is not required to be

separately licensed as a collector or solicitor.

Under current law, a person may not operate as a collection agency unless the

person is licensed as a collection agency by the Division of Banking in the

Department of Financial Institutions. A "collection agency" is defined as a person

engaging in the business of collecting or receiving for payment for others of any

account, bill, or other indebtedness, but the definition also contains specific

exceptions, including those for attorneys and banks. A collection agency license

permits operation of the collection agency only at or from the location specified in the

license and the collection agency license must be conspicuously posted in the office

of the collection agency.

Also under current law, a "collector" or "solicitor" is defined as a person

employed by a collection agency to collect or receive payment, or to solicit the

receiving or collecting of payment, for others of any account, bill, or other

indebtedness outside of the office. A collector or solicitor must hold a separate license

as a collector or solicitor, which must state the name of the collector's or solicitor's

employer. The collector or solicitor must carry this license as a means of

identification whenever the collector or solicitor is engaged in business.

This bill specifies that an employee of a licensed collection agency may work

from the employee's home if the employee complies with all of the same requirements

that would apply if the employee were working within the licensed office of the

collection agency. The bill also modifies the definition of "collector" or "solicitor" so

that it does not include a person who works from home and the bill clarifies that a

licensed collector or solicitor employed by a collection agency may work outside the

licensed office of the collection agency.