A Year of Uncertainty

At the same time, states considered and often enacted legislation that negatively affected the ability of the industry to effectively communicate with consumers regarding resolution of outstanding financial obligations. ACAs Government Affairs Department sees four critical areas of state credit and collection law that will continue to be in the spotlight of state legislatures, attorneys general, regulators and consumer protection advocates. * Collection of time-barred debt. In 2009, at least five state or local jurisdictions either passed legislation or introduced legislation or regulation restricting or prohibiting collection of time-barred debt. These proposals either prohibit collection of this debt outright or require agencies to inform consumers a debt is time- barred before resuming collection efforts. Some states are considering an outright reduction in the applicable statute of limitations for a debt, thereby reducing the time in which a consumer is obligated to pay a debt, requiring the industry to seek legal remedies for a debt in a court of law much sooner. Units should begin a robust campaign early this year to contact state legislators and regulators in order to establish working relationships as state legislative sessions become active. As many of you know, state legislative proposals often begin with one story or moment. Without additional perspective, this moment can affect thousands of businesses if the proposal becomes law. We must stand ready to communicate these perspectives and to educate our state legislatures about the benefits we provide to this nation.