Arkansas Amends Penalties for Unlicensed Collection Agency Activities

Debt Collection

On April 8, the Arkansas General Assembly approved H.B.1668, which amends its collection agencies law to allow unlicensed collection agencies operating within the state to pay a $10,000 civil penalty to be considered retroactively licensed by its State Board of Collection Agencies. The legislation defines “retroactively licensed” as the date in which the collection agency first became subject to licensure. The legislation removes the criminal penalty for operating without a license but preserves the board’s right to impose a minimum fine of $50 up to a maximum of $500 for each day a collection agency participates in collection activities without a license. The opportunity to opt for retroactive licensure will take effect 90 days after the state legislature has adjourned.