Idaho Debt Settlement Laws
Debt Settlement License Registration Required:
Statute: Idaho Code §26-2221 et seq.
Definition: “Debt counselor” or “credit counselor” means any person engaged in any of the activities enumerated in subsection (7) of section 26-2223, Idaho Code.
No person shall without complying with the terms of this act and obtaining a license from the director:
(1) Operate as a collection agency, debt counselor, credit counselor, or credit repair organization in this state.
(2) Engage, either directly or indirectly, in this state in the business of collecting or receiving payment for others of any account, bill, claim or other indebtedness.
(3) Solicit or advertise in this state to collect or receive payment for another of any account, bill, claim or other indebtedness.
(4) Sell or otherwise distribute in this state any system or systems of collection letters or similar printed matter where the name of any person other than the particular creditor to whom the debt is owed appears.
(5) Engage in any activity in this state which indicates, directly or indirectly, that a third party is or may be involved in effecting any collections.
(6) Engage or offer to engage in this state, directly or indirectly, in the business of collecting any form of indebtedness for that person’s own account if the indebtedness was acquired from another person and if the indebtedness was either delinquent or in default at the time it was acquired.
(7) Engage or offer to engage in this state in the business of receiving money from debtors for application or payment to or prorating of a debt owed to, any creditor or creditors of such debtor, or engage or offer to engage in this state in the business of providing counseling or other services to debtors in the management of their debts, or contracting with the debtor to effect the adjustment, compromise, or discharge of any account, note or other indebtedness of the debtor.
(8) Engage or offer to engage in this state in the business of selling, providing or performing services to improve any consumer’s credit record, credit history or credit rating, or providing advice or assistance to any consumer with regard to his credit record, credit history or credit rating.