(1) |
As used in this section:
Terms Used In Utah Code 12-1-11- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means :Utah Code 68-3-12.5
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a) |
“Creditor” is as defined in 15 U.S.C. § 1692a. |
(b) |
“Debt” means an obligation or alleged obligation to pay money arising out of a transaction for money, property, insurance, or services. |
(c) |
“Debtor” means a person obligated or allegedly obligated to pay a debt. |
(d) |
“Financial transaction card” means the same as that term is defined in Section 13-38a-102. |
(e) |
“Third party debt collection agency” means:
(ii) |
a person who would be a debt collector under 15 U.S.C. § 1692a, except that the person does not use an instrumentality of interstate commerce or the mail. |
|
|
(2) |
(a) |
A creditor may require a debtor to pay a collection fee in addition to any other amount owed to the creditor for a debt if:
(i) |
imposing a collection fee on the debtor or in relation to the debt is not prohibited or otherwise restricted by another federal or state law; |
(ii) |
the creditor contracts with a third party debt collection agency or licensed attorney to collect the debt; |
(iii) |
the third party debt collection agency with which the creditor contracts is registered under this title; |
(iv) |
there is a written agreement between the creditor and the debtor that:
(A) |
creates the debt; and |
(B) |
provides for the imposition of the collection fee in accordance with this section; and |
|
(v) |
the obligation to pay the collection fee is imposed at the time of assignment of the debt to a third party debt collection agency or licensed attorney in accordance with an agreement described in Subsection (2) (a)(iv). |
|
(b) |
The creditor shall establish the amount of the collection fee imposed under this Subsection (2), except that the amount may not exceed the lesser of:
(i) |
the actual amount a creditor is required to pay a third party debt collection agency or licensed attorney, regardless of whether that amount is a specific dollar amount or a percentage of the principal amount owed to the creditor for a debt; or |
(ii) |
40% of the principal amount owed to the creditor for a debt. |
|
(c) |
An obligation to pay a collection fee imposed under this Subsection (2) is in addition to any obligation to pay attorney fees that may otherwise exist. |
|
(3) |
(a) |
Subject to Subsection (3)(b), a third party debt collection agency that accepts a financial transaction card for the transaction of business may charge a convenience fee for a transaction processed over:
(ii) |
text or similar short message service; or |
|
(b) |
Before a third party debt collection agency charges a convenience fee as described in Subsection (3)(a), the third party debt collection agency shall:
(i) |
clearly disclose to the debtor that the third party debt collection agency will charge the debtor a convenience fee, in a time and manner that allows the debtor to accept or reject the convenience fee; |
(ii) |
disclose to the debtor the amount of the convenience fee; and |
(iii) |
give the debtor an alternative payment method option for which a convenience fee does not apply. |
|
|
Amended by Chapter 121, 2020 General Session