The Idaho Department of Finance recently issued guidance to assist licensed collection agencies in complying with the Idaho Collection Agency Act. The department issued the guidance in response to an Idaho Supreme Court decision that impacts the way collection agencies are required to operate under the provisions of the act. The Supreme Court decision specifically addressed a collection agency’s ability to collect fees and other charges related to a consumer’s debt.
Summary of the Idaho Supreme Court Decision
In Medical Recovery Services, LLC v. Strawn, 321 P.3d 703 (2014), the Idaho Supreme Court found that the collection agency’s attempt to add attorney’s fees in the amount of $350 to a consumer’s medical debt was impermissible, even though the consumer signed a Patient Sign-In Form that specified the attorney’s fees.
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