La. Admin. Code tit. 10, § XV-509 - Collection of Nonsufficient Funds Fees
A. Purpose. In connection with the recovery
of sums represented by returned checks for their clients, certain debt
collection agencies are collecting service fees in excess of those allowed by
law. The Commissioner of the Office of Financial Institutions is statutorily
mandated to implement the provisions of the Collection Agency Regulation Act,
(CARA), R.S. 9:3516.1, et seq., as amended, to regulate the licensing,
operations, and practices of collection agencies and debt collectors to protect
the welfare of the citizens of Louisiana. This rule is being promulgated to
clarify the amount of fees and charges which may be collected by debt
collection agencies for debts involving checks returned for nonsufficient
funds.
B. Definitions. The
definitions for the terms utilized in this rule are the same as those provided
for in the definitions section of the CARA, and specifically
R.S. 9:3576.3.
C. Collection by a Debt Collection Agency. In
a debt collection agency's collection of claims represented by checks returned
to its clients for nonsufficient funds, the debt collection agency may collect
only those fees and charges allowed by Louisiana law, including but not limited
to
R.S.
9:2782.
D. Action. The commissioner may order a debt
collection agency to return any fees and charges in excess of those allowed by
Louisiana law. Failure to comply with this rule or the commissioner's order
shall constitute a violation of the CARA and may subject the debt collection
agency to administrative and/or enforcement action by the
commissioner.
Notes
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