Tennessee § 62-20-102 - Chapter definitions.

§ 62-20-102. Chapter definitions.

As used in this chapter, unless the context otherwise requires: “Board” means the Tennessee collection service board; “Client” means any person who retains the services of a collection service and for such services directly provides the fee, commission or other compensation; “Collection service” means any person that engages in, or attempts to engage in, the collection of delinquent accounts, bills or other forms of indebtedness irrespective of whether the person engaging in or attempting to engage in collection activity has received the indebtedness by assignment or whether the indebtedness was purchased by the person engaging in, or attempting to engage in, the collection activity. “Collection service” does not include any person that engages in, or attempts to engage in, the collection of notes or guarantees. “Collection service” includes, but is not limited to: Any deputy sheriff, constable or other individual who, in the course of that person's duties, accepts any compensation other than that fixed by statute in connection with the collection of an account; Any person who, in the process of collecting that person's own accounts, uses or causes to be used any fictitious name that would indicate to a debtor that a third party is handling the accounts; Any person who offers for sale, gives away or uses any letter or form designed for use in the collection of accounts that deceives the receiver into believing that an account is in the hands of a third party, even though the letter or form may instruct the debtor to pay directly to the debtor's creditor; and Any person who engages in the solicitation of claims or judgments for the purpose of collecting or attempting to collect claims or judgments or who solicits the purchase of claims or judgments for the purpose of collecting or attempting to collect claims or judgments by engaging in or attempting to engage in collection activity relative to claims or judgments; “Collection service license” means a license granted to a collection service; “Financially responsible” means capable, as demonstrated to the board's satisfaction, of sound financial management and fiscal discretion. The board may deem to be not financially responsible any person who: Submits a balance sheet reflecting liabilities in excess of assets; Is unable to pay debts as they mature; Submits materially inaccurate financial information; or Issues a check to a client without sufficient funds for the payment of the check in full; “Person” means an individual, firm, corporation, association or other legal entity; and “Solicitor” means any individual who is employed by or under contract with a collection service to solicit accounts or sell collection service forms or systems on its behalf. Acts 1981, ch. 170, § 2; modified; Acts 1988, ch. 823, §§ 1-5; 2009, ch. 279, § 6; 2013, ch. 180, § 6; 2014, ch. 996, § 1. Compiler's Notes. Acts 2014, ch. 996, § 5 provided that it is the legislative intent that the provisions contained in the act are remedial in nature and are intended to clarify the statute and policies of the collection services board. The clarifying provisions in the act are intended to provide a restatement of the statute and policies as the statute existed prior to May 22, 2014. Attorney General Opinions. A company that is owned and operated by licensed attorneys that obtains assignments of judgments for a fee from judgment creditors and that divides net proceeds collected on the judgments with the judgment creditors operates as a “collection service” within the meaning of the statute, OAG 00-105, 2000 Tenn. AG LEXIS 107 (6/8/00). The term “notes” in T.C.A. § 62-20-102(3) , which exempts from the definition of “collection service” any person that engages in the “collection of notes or guarantees,” is best understood as encompassing only written promissory notes, i.e., unconditional written promises, signed by the maker, to pay absolutely and in any event a certain sum of money either to, or to the order of, the bearer or a designated person. When the Collection Services Board receives a complaint against a collection service licensee, it should inquire as to the nature of the underlying debt to make sure that is covered by the Tennessee Collection Services Act. OAG 19-17, 2019 Tenn. AG LEXIS 57 (9/25/2019).