Collector - July 2017 - 22


Many states are migrating to the
Nationwide Multistate Licensing
System & Registry (NMLS) for
debt collection agency licensing.
NMLS is a secure web-based
system that is being increasingly
used by state regulators to improve
and streamline licensing and
supervision of state regulated
industries, such as debt collection.
Through NMLS, companies
maintain a single record to apply
for, maintain and renew state
licenses with state regulators in
multiple states. NMLS provides
increased functionality when
submitting financial statements
and other documentation that may
be required to obtain a license.
When states migrate to
NMLS, they typically notify
current licensees directly and
provide information to aid in the
transition. For more information
on NMLS, check out


account pursuant to the terms of the
student loan or the servicing contract.
* Maintaining account records for the
student loan and communicating with
the borrower regarding the student loan
on behalf of the owner of the student
loan promissory note during a period
when no payment is required.
* Interacting with a borrower related to
that borrower's student loan with the
goal of helping the borrower avoid
default on his or her student loan or
facilitating the activities described in
paragraph above.
The full requirements of the act are
available at:
Following in the footsteps of
Connecticut and California, the District
of Columbia (Washington, D.C.) recently
enacted the Student Loan Ombudsman
Establishment and Servicing Regulation
Amendment Act.
This new law went into effect on Feb. 18,
2017, but the act directs the commissioner
to issue rules to implement the act's
ombudsman and licensing provisions within
180 days of the effective date.
The law is applicable to student loan
servicers located within or outside D.C. The
act defines student education loan to mean
"a loan obtained for personal use to finance
education or other school-related expenses."
The law exempts banks, trust companies,
credit unions and public or private nonprofit
postsecondary educational institutions
servicing their own student loans.
For more information on this new
law, read the full text at

Many states also require licenses for
servicing other particular types of loans,
such as "supervised loans" or "consumer
loans." While these laws are not necessarily
new, a few states have offered clarification
on whether a particular servicer license
applies to debt collectors either in the
statute itself or regulatory guidance.
For example, Kansas requires a license to
service "supervised loans," which are defined,

in part, as loans that exceed 12 percent
interest per year, are incurred primarily for
personal, family or household purposes, and
either do not exceed $25,000 or are secured
by an interest in land.
In recent years, the Kansas Lending
Division provided clarification to ACA
International regarding the state's
supervised loan licensing requirements.
The division stated that a license for
supervised loans is required for entities that
acquire, purchase or buy consumer debt,
and directly or indirectly collect or enforce
rights on the debt, if the debt is considered
a "supervised loan" pursuant to the Kansas
Uniform Consumer Credit Code.
The division also confirmed through
informal guidance that entities that merely
collect such loans for other licensees are not
required obtain a license.
Montana also requires a license for
servicers of "consumer loans," which are
defined in part as credit offered to an
individual for personal, family or household
The Montana Division of Banking and
Financial Institutions recently clarified that
an entity acting as a servicer by receiving
or accepting payments due on a Montana
consumer loan, and either keeping those
payments or directing them to another
entity, must be licensed under the act. The
division also confirmed to ACA that "[t]he
Montana Division of Banking does require
licensing for debt collectors of Montana
Consumer Loans if the collector is receiving
or accepting payments."
In cases where states have not clarified
whether a particular servicer license
requirement applies, debt collectors
servicing these types of debts will need to
carefully review the language of the statute
and also consider seeking the advice of an
attorney or the state's regulator to determine
whether the particular servicer license is

One societal trend that is reshaping the
way people work in many industries is the
prospect of employees working off-site via
computer, phone and other technology.


Table of Contents for the Digital Edition of Collector - July 2017

Industry News
Best Practices
Collection Tips
What’s in Your Policy?
State Licensing Laws: What’s New and Trending
The Question of Rule 68
Honor Roll
Healthcare Data at Risk
ACA Members Meet in D.C. to Advocate on Behalf of Industry
Fixing What’s Broken
Credit Listening Considerations
U.S. Supreme Court Hands Collection Industry a Win in ACA-Supported Case
ACA SearchPoint
Last Word
Collector - July 2017 - Cover1
Collector - July 2017 - Cover2
Collector - July 2017 - 1
Collector - July 2017 - 2
Collector - July 2017 - Upfront
Collector - July 2017 - Industry News
Collector - July 2017 - 5
Collector - July 2017 - 6
Collector - July 2017 - 7
Collector - July 2017 - Best Practices
Collector - July 2017 - 9
Collector - July 2017 - FYI
Collector - July 2017 - 11
Collector - July 2017 - Collection Tips
Collector - July 2017 - 13
Collector - July 2017 - What’s in Your Policy?
Collector - July 2017 - 15
Collector - July 2017 - 16
Collector - July 2017 - 17
Collector - July 2017 - 18
Collector - July 2017 - 19
Collector - July 2017 - State Licensing Laws: What’s New and Trending
Collector - July 2017 - 21
Collector - July 2017 - 22
Collector - July 2017 - 23
Collector - July 2017 - The Question of Rule 68
Collector - July 2017 - 25
Collector - July 2017 - 26
Collector - July 2017 - 27
Collector - July 2017 - Calendar
Collector - July 2017 - Honor Roll
Collector - July 2017 - Healthcare Data at Risk
Collector - July 2017 - 31
Collector - July 2017 - ACA Members Meet in D.C. to Advocate on Behalf of Industry
Collector - July 2017 - 33
Collector - July 2017 - 34
Collector - July 2017 - 35
Collector - July 2017 - Fixing What’s Broken
Collector - July 2017 - 37
Collector - July 2017 - 38
Collector - July 2017 - 39
Collector - July 2017 - Credit Listening Considerations
Collector - July 2017 - 41
Collector - July 2017 - U.S. Supreme Court Hands Collection Industry a Win in ACA-Supported Case
Collector - July 2017 - 43
Collector - July 2017 - Compliance
Collector - July 2017 - 45
Collector - July 2017 - ACA SearchPoint
Collector - July 2017 - 47
Collector - July 2017 - Last Word
Collector - July 2017 - Cover3
Collector - July 2017 - Cover4