Collection Company Laws in Arizona

Arizona laws have clear guidelines for collection companies that protect debtors. The Arizona Revised Statutes (Title 32, Ch 9) require collection agencies operating in Arizona be licensed and bonded. The Arizona Administrative Code (Title 20, Ch 4, Article 15) limits collection practices.

Legal Misrepresentation

A collection agency may not misrepresent the law. They cannot send collection notices that imply a legal proceeding which does not exist. They cannot imply a debtor may be subject to criminal proceedings or arrest.

Harassment

A collection agency cannot harass a debtor. This includes any written or oral communication intended to ridicule, disgrace or humiliate the debtor. Collection agents may not use offensive or abusive language when trying to collect a debt.

Contact Limitations

Collection agencies can only call within reasonable hours. They can only call a debtor at work if all reasonable attempts to contact the debtor at home have failed. A collection agency cannot tell a third-party such as a debtor's friend, relative, neighbor, or employer about the debt they are attempting to collect.

Cease Communication

Collection agencies cannot contact the debtor if the debtor states in writing that they refuse to pay the debt or that they want the collection agency to stop communication.

References

• Arizona Revised Statutes 32-1021: Original application for license; financial statement; bond; definition
• Arizona Administrative Code, Title 20, Chapter 4, Article 15: Collection Agencies