HB 1133

1	A bill to be entitled
2	An act relating to commercial and consumer collection
3	practices; amending s. 559.544, F.S.; deleting provisions
4	requiring registration as a commercial collection agency;
5	specifying nonapplication of certain registration
6	requirements to certain persons or entities; amending s.
7	559.545, F.S.; revising requirements and procedures for
8	application for registration as a commercial collection
9	agency; authorizing the Financial Services Commission to
10	adopt rules; providing for fees; providing for amendments
11	to and changes in registrations; authorizing the Office of
12	Financial Regulation to deny registrations under certain
13	circumstances; amending s. 559.546, F.S.; providing
14	requirements and procedures for issuance of a corporate
15	surety bond; creating ss. 559.5471, 559.5473, 559.5474,
16	559.5475, 559.5476, 559.5477, and 559.5479, F.S.;
17	specifying powers and duties of the Office of Financial
18	Regulation; providing procedures; providing for
19	disposition of fees; authorizing the office to adopt
20	rules; authorizing the office to issue subpoenas;
21	providing requirements, procedures, and limitations;
22	authorizing the office to assess certain investigation
23	costs and expenses; authorizing the office to bring
24	certain actions for injunctions to restrain certain
25	violations; providing requirements and procedures;
26	authorizing the office to issue certain cease and desist
27	orders and take certain corrective actions for certain
28	violations; authorizing the office to seed orders of
29	restitution of certain funds; providing for admissibility
30	of certain documents and materials of the office as
31	evidence; requiring registrants to maintain certain
32	records; providing requirements and procedures for
33	maintaining such records; authorizing the office to adopt
34	rules; authorizing the office to revoke or suspend
35	registrations for certain activities by a registrant;
36	providing requirements and procedures for termination of a
37	registration; authorizing the office to impose
38	administrative fines; providing requirements and
39	limitations; providing guidelines for imposing
40	administrative remedies or penalties; amending s. 559.55,
41	F.S.; revising definitions; providing additional
42	definitions; amending s. 559.552, F.S.; revising
43	provisions specifying the relationship of state and
44	federal laws; providing construction; amending s. 559.553,
45	F.S.; deleting provisions requiring registration as a
46	consumer collection agency; specifying nonapplication of
47	certain registration requirements to certain persons or
48	entities; amending s. 559.555, F.S.; revising requirements
49	and procedures for application for registration as a
50	consumer collection agency; authorizing the Financial
51	Services Commission to adopt rules; providing for fees;
52	providing for amendments to and changes in registrations;
53	authorizing the Office of Financial Regulation to deny
54	registrations under certain circumstances; creating s.
55	559.556, F.S.; providing requirements and procedures for
56	issuance of a corporate surety bond; amending s. 559.72,
57	F.S.; specifying prohibited activities in collecting
58	consumer debts; providing requirements for debt collectors
59	communicating with certain persons; providing prohibitions
60	and limitations; providing notification requirements;
61	prohibiting false, deceptive or misleading representations
62	by a debt collector; prohibiting unfair or unconscionable
63	means of collecting debts; requiring debt collectors to
64	provide certain notice to consumers in connection with
65	collecting a debt; specifying required information;
66	providing procedures and requirements for disputing a
67	debt; providing procedures and requirements for payments
68	on multiple debts; providing requirements for debt
69	collectors bringing legal actions on a debt; prohibiting
70	designing, compiling and furnishing certain misleading
71	forms; providing for liability for certain violations;
72	amending s. 559.725, F.S.; revising provisions providing
73	requirements and procedures for consumer complaints;
74	creating ss. 559.726, 559.7262, 559.7263, 559.7264, and
75	559.7265, F.S.; specifying powers and duties of the Office
76	of Financial Regulation; providing procedures; providing
77	for disposition of fees; authorizing the office to adopt
78	rules; authorizing the office to issue subpoenas;
79	providing requirements, procedures, and limitations;
80	authorizing the office to assess certain investigation
81	costs and expenses; authorizing the office to bring
82	certain actions for injunctions to restrain certain
83	violations; providing requirements and procedures;
84	authorizing the office to issue certain cease and desist
85	orders and take certain corrective actions for certain
86	violations; authorizing the office to seed orders of
87	restitution of certain funds; providing for admissibility
88	of certain documents and materials of the office as
89	evidence; requiring registrants to maintain certain
90	records; providing requirements and procedures for
91	maintaining such records; authorizing the office to adopt
92	rules; amending s. 559.730, F.S.; authorizing the office
93	to revoke or suspend registrations for certain activities
94	by a registrant; providing requirements and procedures for
95	termination of a registration; authorizing the office to
96	impose administrative fines; providing requirements and
97	limitations; creating s. 559.735, F.S.; providing
98	guidelines for imposing administrative remedies or
99	penalties; amending s. 559.77, F.S.; specifying
100	application of certain provisions of law; amending s.
101	559.785, F.S.; increasing criminal penalties for certain
102	activities; specifying a criminal penalty for certain
103	activities; authorizing the office to refer certain
104	evidence to certain agencies for certain purposes;
105	creating s. 559.786, F.S.; requiring the office to submit
106	an annual report; specifying contents; repealing ss.
107	559.547 and 559.563, F.S., relating to void registrations;
108	repealing s. 559.565, F.S., relating to enforcement
109	actions against out-of-state consumer debt collectors;
110	providing an appropriation; providing an effective date.
111
112	Be It Enacted by the Legislature of the State of Florida:
113
114	Section 1.  Section 559.544, Florida Statutes, is amended
115	to read:
116	559.544  Registration required; Exemptions.--
117	(1)  No person shall engage in business in this state as a
118	commercial collection agency, as defined in this part, or
119	continue to do business in this state as a commercial collection
120	agency, without first registering in accordance with this part
121	and thereafter maintaining such registration.
122	(2)  Each commercial collection agency doing business in
123	this state shall register with the office and annually renew
124	such registration, providing the registration fee, information,
125	and surety bond required by this part.
126	(3)  No registration shall be valid for any commercial
127	collection agency transacting business at any place other than
128	that designated in the registration unless the office is first
129	notified in advance of any change of location. A registration
130	under this part is not transferable or assignable. Any
131	commercial collection agency desiring to change its registered
132	name, location, or agent for service of process at any time
133	other than renewal of registration shall notify the office of
134	such change prior to the change.
135	(4)  The office shall not accept any registration for any
136	commercial collection agency as validly made and filed with the
137	office under this section unless the registration information
138	furnished to the office by the registrant is complete pursuant
139	to s. 559.545 and facially demonstrates that such registrant is
140	qualified to engage in business as a commercial collection
141	agency, including specifically that neither the registrant nor
142	any principal of the registrant has engaged in any unlawful
143	collection practices, dishonest dealings, acts of moral
144	turpitude, or other criminal acts that reflect an inability to
145	engage in the commercial collection agency business. The office
146	shall inform any person whose registration is rejected by the
147	office of the fact of and basis for such rejection. A
148	prospective registrant shall be entitled to be registered when
149	her or his or its registration information is complete on its
150	face, the applicable registration fee has been paid, and the
151	required evidence of current bond is furnished to the office.
152	(5)  The registration requirements of s. 559.545 do This
153	section shall not apply to:
154	(1)(a)  A member of The Florida Bar, unless the such person
155	is primarily engaged in the collection of commercial claims.
156	"Primarily engaged in the collection of commercial claims" means
157	that more than one-half of the person's income of such person
158	arises from the business of soliciting commercial claims for
159	collection or collecting commercial claims.
160	(2)(b)  A financial institution authorized to do business
161	in this state or and any wholly owned subsidiary or an and
162	affiliate thereof.
163	(3)(c)  A licensed real estate broker.
164	(4)(d)  A title insurance company authorized to do business
165	in this state.
166	(5)(e)  A licensed consumer collection agency that which is
167	not primarily engaged in the collection of commercial claims.
168	"Not primarily engaged in the collection of commercial claims"
169	means that less than one-half of the collection revenue of the
170	such agency arises from the collection of commercial claims.
171	(6)(f)  A consumer finance company or and any wholly owned
172	subsidiary or an and affiliate thereof.
173	(7)(g)  A person licensed pursuant to chapter 520.
174	(8)(h)  A credit grantor.
175	(9)(i)  An out-of-state collector as defined in this part.
176	(10)(j)  An FDIC-insured institution or subsidiary or
177	affiliate thereof.
178	Section 2.  Section 559.545, Florida Statutes, is amended
179	to read:
180	(Substantial rewording of section. See s.
181	559.545, Florida Statutes, for current text.)
182	559.545  Registration of commercial collection agencies;
183	procedure.--
184	(1)  A person may not engage in business in this state as a
185	commercial collection agency, as defined in this part, or
186	continue to do business in this state as a commercial collection
187	agency, unless the person is registered with the office
188	according to this part and thereafter maintains the
189	registration.
190	(2)  A registration is not valid for any commercial
191	collection agency transacting business at any place other than
192	the place designated in the registration unless the office is
193	first notified in advance of any change of location.
194	(3)  Any person who applies for registration as a
195	commercial collection agency in compliance with this part shall
196	do so on forms adopted by the commission and furnished by the
197	office. The commission may establish by rule procedures for
198	depositing fees and filing documents by electronic means
199	provided such procedures provide the office with the information
200	required by this section. The commission or office may require
201	each applicant for a commercial collection agency registration
202	to provide:
203	(a)  A nonrefundable application fee in the amount of $900.
204	All amounts collected shall be deposited to the credit of the
205	Regulatory Trust Fund of the office.
206	(b)  The name of the applicant, any other names under which
207	the applicant conducts business, and the address of the
208	applicant's principal place of business and each office in this
209	state.
210	(c)  The applicant's form and place of organization and, if
211	the applicant is a corporation, a copy of the articles of
212	incorporation and amendments to such articles, if a partnership,
213	a copy of the partnership agreement or, if limited liability
214	company, a copy of the articles of organization.
215	(d)  Documents demonstrating that the bonding requirements
216	specified in s. 559.546 have been satisfied.
217	(e)  Information and documentation necessary to make a
218	determination of the applicant's eligibility for registration.
219	(4)  The applicant shall also provide information as the
220	office may require about any partner, officer, or director of
221	the applicant, any person having the same or substantially
222	similar status or performing substantially similar functions, or
223	any person directly or indirectly controlling the applicant. For
224	purposes of this section, the term "directly or indirectly
225	controlling the applicant" means possessing the power to direct
226	or to cause the direction of the management or policies of a
227	company, whether through ownership of stock or securities, by
228	contract or otherwise. Any individual or company that directly
229	or indirectly has the right to vote 25 percent or more of the
230	voting stock or securities of a company or is entitled to 25
231	percent or more of its profits is presumed to control that
232	company. The office may require information about any such
233	applicant or person, including:
234	(a)  His or her full name, current address, current
235	telephone number, date of birth, or social security number or
236	the federal identification number of any corporate owner.
237	(b)  His or her previous 10 year educational or employment
238	history.
239	(c)  Any adverse decision, finding, injunction, suspension,
240	prohibition, revocation, denial, or judgment by any court of
241	competent jurisdiction or an administrative order by an
242	administrative law judge, or by any state or federal agency or
243	any business, professional, or occupational association
244	involving a violation of any law, rule, or regulation relating
245	to any business or professional licensing.
246	(d)  His or her commission of any acts which would be
247	grounds for denial of an application under s. 559.545(10).
248	(5)  An initial application is deemed received for purposes
249	of s. 120.60 upon receipt of the completed application form
250	prescribed by commission rule, the nonrefundable application fee
251	of $900, and any other fee prescribed by law.
252	(6)  Upon the filing of an application for registration and
253	payment of all applicable fees, the office shall investigate the
254	applicant. If the office determines that registration should be
255	granted, the office shall register the applicant for a period
256	not to exceed 1 year.
257	(7)  The registration of each commercial collection agency
258	expires on December 31 of the year in which the registration
259	became effective unless the registrant has renewed its
260	registration on or before that date. Registration may be renewed
261	as the commission may require by rule, together with payment of
262	the $450 nonrefundable renewal fee and the payment of any amount
263	lawfully due and owing to the office pursuant to any order of
264	the office or pursuant to any agreement with the office. A
265	commercial collection agency that has not renewed its
266	registration by the time the registration period expires may
267	request reactivation of its registration. The registrant shall
268	file its request with the office on or before January 31 of the
269	year following the year of expiration. The request must contain
270	any information the office requires, together with the
271	registration fee required in this section, and a nonrefundable
272	reactivation fee in the amount of $250. Any reactivation of
273	registration granted by the office during the month of January
274	is deemed effective retroactive to January 1 of that year. Any
275	registrant that engages in business as a commercial collection
276	agency after its registration has expired violates subsection
277	(1), punishable as provided by ss. 559.548(1) and 559.5477(6).
278	(8)  If the information contained in any application or any
279	amendment to such application has changed, the registrant shall
280	file an amendment on the forms prescribed by the commission
281	correcting such information within 30 days after the change.
282	(9)  A registration under this part is not transferable or
283	assignable unless accomplished pursuant to this subsection.
284	(a)  Changes in registration occasioned by changes in
285	personnel of a partnership or in the principals, copartners,
286	officers, or directors of any registrant or by changes of any
287	material fact shall be reported by written amendment in such
288	form and at such time as the commission may specify by rule. In
289	any case in which a person or a group of persons, directly or
290	indirectly or acting by or through one or more persons, proposes
291	to purchase or acquire a controlling interest in a registrant,
292	such person or group shall submit an initial application for
293	registration as a commercial collection agency prior to such
294	purchase or acquisition at such time and in such form as the
295	commission may prescribe by rule.
296	(b)  The commission shall adopt rules providing for waiver
297	of the application required by this subsection when control of a
298	registrant is to be acquired by another registrant under this
299	chapter or when the application is otherwise unnecessary in the
300	public interest.
301	(10)  The office may deny registration if the applicant,
302	any principal of the applicant, or any person having control of
303	the applicant:
304	(a)  Has committed any violation of s. 559.72;
305	(b)  Is the subject of a pending criminal prosecution or
306	governmental enforcement action, in any jurisdiction, until the
307	conclusion of such criminal prosecution or enforcement action;
308	(c)  Is currently subject to a pending enforcement action
309	by any federal authority for violations of the Fair Debt
310	Collection Practices Act or the Federal Trade Commission Act;
311	(d)  Has been found guilty of, regardless of adjudication,
312	or has entered a plea of nolo contendere or guilty to, any
313	offense involving fraud, dishonest dealing, or moral turpitude;
314	(e)  Has been found guilty of, regardless of adjudication,
315	or has entered a plea of nolo contendere or guilty to, any
316	felony;
317	(f)  Has had entered against him or her, or any business
318	for which he or she was directly or indirectly a controlling
319	person in the business or controlled the business, an
320	injunction, a temporary restraining order, or a final judgment
321	or order, including a stipulated judgment or order, an assurance
322	of voluntary compliance, or any similar document, in any civil
323	or administrative action involving racketeering, fraud, theft,
324	embezzlement, fraudulent conversion, or misappropriation of
325	property or the use of any untrue, deceptive, or misleading
326	representation in an attempt to sell or dispose of real or
327	personal property or the use of any unfair, unlawful, or
328	deceptive trade practice, whether or not there is any litigation
329	pending against the applicant;
330	(g)  Is subject to or was directly or indirectly a
331	controlling person in the business, or controlled the business,
332	with any company that is, or ever has been, subject to any
333	injunction, temporary restraining order, including a stipulated
334	judgment or order, an assurance of voluntary compliance, or any
335	similar document, or any restrictive court order relating to
336	business activity as the result of any action brought by a
337	governmental agency, including any action affecting any license
338	to do business or practice an occupation or trade;
339	(h)  Falsified or willfully omitted any material
340	information asked for in any application, document, or record
341	required to be submitted under this part or the rules of the
342	commission;
343	(i)  Made a material false statement of fact in an
344	application for registration or in response to any request or
345	investigation by the office; or
346	(j)  Has been the subject of any adverse decision, finding,
347	injunction, suspension, prohibition, revocation, denial, or
348	judgment by any court of competent jurisdiction or an
349	administrative order by an administrative law judge, any state
350	or federal agency, or any business, professional, or
351	occupational association involving a violation of any law, rule,
352	or regulation relating to business or professional licensing.
353	Section 3.  Section 559.546, Florida Statutes, is amended
354	to read:
355	(Substantial rewording of section. See s.
356	559.546, Florida Statutes, for current text.)
357	559.546  Surety bond.--
358	(1)  Before the office may issue a registration, the
359	applicant must provide to the office a corporate surety bond
360	issued by a bonding company or insurance company authorized to
361	do business in this state.
362	(2)  The corporate surety bond shall be in the amount of
363	$50,000, paid for and issued for the benefit of any credit
364	grantor against the registrant to secure the faithful
365	performance of the obligations of the registrant with respect to
366	the receipt, handling, and payment of funds collected by the
367	registrant.       (3)  If multiple claims are filed against the
368	surety on any bond in excess of the amount of the bond, the
369	surety may pay the full amount of the bond to the office and is
370	not further liable under the bond. The office shall hold the
371	funds for distribution to claimants and pay to each claimant the
372	pro rata share of each valid claim made against the funds within
373	6 months after the date of the filing of the first claim against
374	the surety.
375	(4)  A corporate surety bond filed with the office for
376	purposes of compliance with this section may not be canceled by
377	the registrant or the corporate surety except upon written
378	notice to the office by registered or certified mail with return
379	receipt requested. A cancellation shall not take effect less
380	than 30 days after receipt by the office of such written notice.
381	(5)  The corporate surety must, within 10 days after the
382	surety pays any claim to any claimant, give written notice to
383	the office by registered or certified mail of such payment with
384	details sufficient to identify the claimant and the claim or
385	judgment so paid.
386	(6)  Whenever the principal sum of such bond is reduced by
387	one or more recoveries or payments, the registrant must furnish
388	a new or additional bond so the total or aggregate principal sum
389	of such bonds equals the sum required by this section.
390	Alternatively, a registrant may furnish an endorsement executed
391	by the corporate surety reinstating the bond to the required
392	principal sum.
393	Section 4.  Sections 559.5471, 559.5473, 559.5474,
394	559.5475, 559.5476, 559.5477, and 559.5479, Florida Statutes,
395	are created to read:
396	559.5471  Powers and duties of the Office of Financial
397	Regulation.--
398	(1)  Compliance with this part shall be enforced by the
399	office, except when enforcement is specifically committed to
400	another agency.
401	(2)  The office may conduct an investigation or examination
402	of any person, within or outside this state, which the office
403	believes is necessary in order to determine whether a person has
404	violated this chapter or the rules adopted by the commission.
405	The office shall provide no less than 15 days advance notice of
406	any examination or investigation of a commercial collection
407	agency. However, if the office suspects that the commercial
408	collection agency has violated any provision of this code or any
409	criminal laws of this state or of the United states or is
410	engaging in an unsafe and unsound practice, the office may, at
411	any time without advance notice, conduct an examination or
412	investigation of all affairs, activities, transactions,
413	accounts, business records, and assets of any commercial
414	collection agency for the protection of the public.
415	(3)  The commission may adopt rules under ss. 120.536(1)
416	and 120.54 to implement and administer this part.
417	(4)  The commission may adopt a rule:
418	(a)  Requiring electronic submission of any form, document,
419	or fee required by this part, provided the rule reasonably
420	accommodates a person with a technological or financial
421	hardship.
422	(b)  Setting forth the criteria and procedures for
423	obtaining an exemption due to a technological or financial
424	hardship.
425	(c)  Accepting certification of compliance with the
426	requirements of this part in lieu of requiring submission of
427	specified documents.
428	(5)  All fees, charges, and fines collected by the office
429	under this part shall be deposited to the credit of the
430	Regulatory Trust Fund of the office.
431	(6)  The office may:
432	(a)  Issue, revoke, quash, or modify and serve subpoenas to
433	compel the attendance of witnesses and subpoenas duces tecum to
434	compel the production of all books, accounts, records, and other
435	documents and materials relevant to an examination or
436	investigation. The office may exercise these powers even if the
437	subject of the investigation or examination is exempt from
438	registration.
439	(b)  Administer oaths and affirmations to any person.
440	(c)  Take, or cause to be taken, testimony and depositions.
441	(7)(a)  In the event of noncompliance with a subpoena or
442	subpoena duces tecum the office issued or caused to be issued,
443	the office may petition a court of competent jurisdiction in the
444	county in which the person subpoenaed resides or has her, his,
445	or its principal place of business for an order requiring the
446	person to appear and testify and to produce the books, accounts,
447	records, and other documents that are specified in the subpoena
448	duces tecum.
449	(b)  A copy of the petition shall be served upon the person
450	subpoenaed by any person authorized by this section to serve
451	subpoenas, who shall make and file with the court an affidavit
452	showing the time, place, and date of service.
453	(c)  At a hearing on the petition to enforce compliance
454	with a subpoena, the person subpoenaed, or any person whose
455	interest will be substantially affected by the investigation,
456	examination, or subpoena, may appear and object to the subpoena
457	and the granting of the petition. The court may make any order
458	that justice requires in order to protect a party or other
459	person and her or his personal and property rights, including,
460	but not limited to, protection from annoyance, embarrassment,
461	oppression, undue burden, or expense.
462	(d)  Failure to comply with an order granting, in whole or
463	in part, a petition to enforce a subpoena is a contempt of the
464	court.
465	(8)  Witnesses are entitled to the same fees and mileage to
466	which they would be entitled by law for attending as witnesses
467	in circuit court, except that fees or mileage may not be allowed
468	for testimony of a person taken at the person's principal office
469	or residence.
470	(9)  Reasonable and necessary costs incurred by the office
471	during an investigation may be assessed against any debt
472	collector on the basis of actual costs incurred. Assessed
473	expenses may include, but are not limited to, expenses for
474	interpreters; expenses for communications; expenses for legal
475	representation; expenses for economic, legal, or other research;
476	analysis and testimony; and fees and expenses for witnesses. The
477	failure to reimburse the office for its reasonable and necessary
478	costs is a reason to deny a registrant's application or to
479	revoke the prior approval of an application.
480	559.5473  Injunction to restrain violations; receivers.--
481	(1)  The office may bring an action on behalf of the state
482	to enjoin any person who has violated, or is about to violate,
483	this part, any rule of the commission, or order of the office
484	issued under this part.
485	(2)  In an injunctive proceeding, the court may issue a
486	subpoena requiring the attendance of any witness or a subpoena
487	duces tecum requiring the production of any book, account,
488	record, or other documents and materials relevant to the pending
489	case.
490	(3)(a)  In addition to any procedure provided by law for
491	enforcing a temporary restraining order or a temporary or
492	permanent injunction, the court may, upon application of the
493	office, impound the property, assets, and business of the
494	registrant, including, but not limited to, the books, records,
495	documents, and papers of the registrant. The court may appoint a
496	receiver to administer the property. The receiver, when
497	appointed and qualified, has the powers and duties that are
498	conferred upon the receiver by the court.
499	(b)  After appointing a receiver, the court may issue an
500	order staying all pending suits and enjoining any further
501	litigation affecting the receiver's custody or possession of the
502	property, assets, and business and the court, with the consent
503	of the chief judge of the circuit, may require that all suits be
504	assigned to the circuit judge who appointed the receiver.
505	559.5474  Cease and desist orders; refund orders.--
506	(1)  The office may issue and serve upon a person an order
507	to cease and desist and to take corrective action whenever the
508	office has reason to believe that a person is violating, has
509	violated, or is about to violate this part, any rule or order of
510	the office issued under this part, or any written agreement
511	between the commercial collection agency and the office.
512	Procedural matters relating to the issuance and enforcement of a
513	cease and desist order are governed by chapter 120.
514	(2)  The office may seek an order of restitution from a
515	court of competent jurisdiction for collected funds due to
516	creditors or any sum collected from a debtor without valid proof
517	of debt.
518	559.5475  Evidence; examiner's worksheets, investigative
519	reports, other related documents.--An official written report,
520	sworn complaint, worksheet, or other related paper, or a
521	certified copy thereof, compiled, prepared, drafted, or
522	otherwise made by the financial examiner is admissible into
523	evidence if the financial examiner is available for cross-
524	examination, authenticates the worksheet, and testifies that the
525	report, worksheet, or related document was prepared as a result
526	of an examination of the books and records of a registrant or
527	other person conducted under the authority of this part.
528	559.5476  Books, accounts, and records; maintenance;
529	examinations by the office.--
530	(1)  Each registrant shall maintain, at its principal place
531	of business designated on its registration, all books, accounts,
532	records, and documents necessary to determine the registrant's
533	compliance with this part.
534	(2)  The office may authorize maintenance of records at a
535	location other than a principal place of business. The office
536	may require books, accounts, and records to be produced and
537	available at a reasonable and convenient location in this state.
538	(3)  All books, accounts, records, documents, and receipts
539	for payments to a registrant by a debtor, and payments made to a
540	creditor by a registrant, shall be preserved and kept available
541	for examination by the office for 3 years after the date of
542	original entry. The commission shall adopt requirements by rule
543	for maintaining the books, accounts, records, and documents
544	retained by the registrant and for destroying the records.
545	(4)  The commission shall designate by rule the minimum
546	information that must be contained in the registrant's books,
547	accounts, records, and documents to enable the office to
548	determine a registrant's compliance with this part.
549	559.5477  Administrative remedies.--
550	(1)  The office may revoke or suspend the registration of a
551	registrant under this part who:
552	(a)  Has been found guilty of, regardless of adjudication,
553	or has entered a plea of nolo contendere or guilty to, any crime
554	involving fraud, dishonest dealing, or moral turpitude;
555	(b)  Has had a final judgment entered against the
556	registrant in a civil action upon the grounds of fraud,
557	embezzlement, misrepresentation, or deceit;
558	(c)  Has had any business, professional, or occupational
559	license or registration suspended, revoked, or otherwise acted
560	against in any jurisdiction;
561	(d)  Fails to maintain the surety bond required pursuant to
562	s. 559.546;
563	(e)  Fails to maintain books and records as required by s.
564	559.5476;
565	(f)  Violates any provision of this part, any rule or order
566	adopted pursuant to this part, or any written agreement entered
567	into with the office;
568	(g)  Paid for a registration with a check or electronic
569	transmission of funds which failed to clear the registrant's
570	financial institution;
571	(h)  Falsified or willfully omitted any material
572	information asked for in any application, document, or record
573	required to be submitted under this part or the rules of the
574	commission;
575	(i)  Made a material false statement of fact in an
576	application for registration or in response to any request or
577	investigation by the office; or
578	(j)  Employs a person, who directly or indirectly controls
579	the applicant as defined in s. 559.545(4) that is subject to an
580	action, or commits an act, specified by paragraph (a), paragraph
581	(b), paragraph (c), paragraph (f), paragraph (h), or paragraph
582	(i).
583	(2)  A registrant may request termination of its
584	registration by delivering written notice of its proposed
585	termination to the office. However, the delivery of the
586	termination notice does not affect any civil or criminal
587	liability of the registrant or the authority of the office to
588	enforce this part.
589	(3)  The office may deny a request to terminate a
590	registration or to withdraw an application for registration if
591	the office believes that the registrant has committed an act
592	that would be grounds for denial, suspension, or revocation
593	under this part.
594	(4)  Final action by the office to revoke or suspend the
595	registration of a registrant is subject to review according to
596	chapter 120 in the same manner as revocation of a license.
597	(5)  The office may impose an administrative fine of up to
598	$1,000 per violation of this section or s. 559.545, s. 559.546,
599	or s. 559.5476 against an offending registrant as an
600	administrative sanction. Final action by the office to impose an
601	administrative fine is subject to review in accordance with ss.
602	120.569 and 120.57.
603	(6)  Notwithstanding any other provision of this section,
604	the office may impose a fine not to exceed $1,000 per day for
605	each day that a person violates the code by engaging in the
606	business of a commercial collection agency without being
607	registered.
608	(7)  Any administrative fine imposed under this part is
609	payable to the office. The office shall maintain an appropriate
610	record and deposit the fine into the Regulatory Trust Fund of
611	the office.
612	(8)  An administrative action by the office to impose
613	revocation, suspension, or a fine must be brought within 5 years
614	after the date of the last violation upon which the action is
615	founded.
616	(9)  The remedies under this part are in addition to
617	remedies otherwise available for the same conduct under state or
618	local law.
619	559.5479  Administrative guidelines.--In imposing any
620	administrative remedy or penalty provided for in this part, the
621	office shall take into account the appropriateness of the
622	penalty with respect to the size of the financial resources and
623	good faith of the person charged, the gravity of the violation,
624	the history of previous violations, and such other matters as
625	justice may require.
626	Section 5.  Subsections (1), (7), and (8) of section
627	559.55, Florida Statutes, are amended, and subsections (10),
628	(11), and (12) are added to said section, to read:
629	559.55  Definitions.--The following terms shall, unless the
630	context otherwise indicates, have the following meanings for the
631	purpose of this part:
632	(1)  "Debt" or "consumer debt" means:
633	(a)  Any obligation or alleged obligation of a consumer to
634	pay money arising out of a transaction in which the money,
635	property, insurance, or services which are the subject of the
636	transaction are primarily for personal, family, or household
637	purposes, whether or not such obligation has been reduced to
638	judgment; or
639	(b)  Any unsatisfied obligation for the payment of money
640	arising out of a legal order for child support.
641	(7)  "Consumer collection agency" means any debt collector
642	or business entity engaged in the business of soliciting
643	consumer debts for collection or of collecting consumer debts,
644	which debt collector or business is not expressly exempted as
645	set forth in s. 559.553(1)(4).
646	(8)  "Out-of-state consumer debt collector" means any
647	person whose business activities in this state involve both
648	collecting or attempting to collect consumer debt from debtors
649	located in this state by means of interstate communication,
650	including telephone, mail, or facsimile transmission,
651	originating from outside this state. The term "out-of-state
652	consumer debt collector" does not include a person who solicits
653	and soliciting consumer debt accounts for collection from
654	creditors who have a business presence in this state. For
655	purposes of this subsection, a creditor has a business presence
656	in this state if either the creditor or an affiliate or
657	subsidiary of the creditor has an office or resides in this
658	state.
659	(10)  "Credit grantor" means any person who offers or
660	extends credit creating a debt or to whom a debt is owed, but
661	such term does not include any person to the extent that person
662	receives an assignment or transfer of a debt in default solely
663	for the purpose of facilitating collection of such debt for
664	another.
665	(11)  "Federal Trade Commission Act" means the federal
666	legislation regulating unfair or deceptive practices or acts, as
667	set forth in 15 U.S.C. ss. 41 et seq.
668	(12)  "Principal of a registrant or applicant" means any
669	owner of the applicant or registrant if a partnership or sole
670	proprietorship, the corporate officers, the corporate directors
671	other than directors of a not-for-profit corporation organized
672	under chapter 617, or the resident agent in this state if a
673	corporation is the applicant or registrant.
674	Section 6.  Section 559.552, Florida Statutes, is amended
675	to read:
676	559.552  Relationship of state and federal law.--
677	(1)  Any violation of the federal Fair Debt Collection
678	Practices Act constitutes a prohibited practice under s. 559.72.
679	(2)  Nothing in This part does not shall be construed to
680	limit or restrict the continued applicability of the federal
681	Fair Debt Collection Practices Act to consumer collection
682	practices in this state. This part is in addition to the
683	requirements and regulations of the federal act. In construing
684	this part, due consideration and great weight shall be given to
685	interpretations of the Federal Trade Commission Act and the Fair
686	Debt Collection Practices Act by the Federal Trade Commission.
687	In the event of any inconsistency between any provision of this
688	part and any provision of the federal act, the provision that
689	which is more protective of the consumer or debtor shall
690	prevail.
691	Section 7.  Section 559.553, Florida Statutes, is amended
692	to read:
693	559.553  Registration of consumer collection agencies
694	required; Exemptions.--
695	(1)  After January 1, 1994, no person shall engage in
696	business in this state as a consumer collection agency or
697	continue to do business in this state as a consumer collection
698	agency without first registering in accordance with this part,
699	and thereafter maintaining a valid registration.
700	(2)  Each consumer collection agency doing business in this
701	state shall register with the office and renew such registration
702	annually as set forth in s. 559.555.
703	(3)  A prospective registrant shall be entitled to be
704	registered when registration information is complete on its face
705	and the applicable registration fee has been paid; however, the
706	office may reject a registration submitted by a prospective
707	registrant if the registrant or any principal of the registrant
708	previously has held any professional license or state
709	registration which was the subject of any suspension or
710	revocation which has not been explained by the prospective
711	registrant to the satisfaction of the office either in the
712	registration information submitted initially or upon the
713	subsequent written request of the office. In the event that an
714	attempted registration is rejected by the office the prospective
715	registrant shall be informed of the basis for rejection.
716	(4)  The registration requirements of s. 559.555 This
717	section shall not apply to:
718	(1)(a)  Any credit grantor original creditor.
719	(2)(b)  Any member of The Florida Bar, unless the person is
720	primarily engaged in the collection of consumer debts.
721	"Primarily engaged in the collection of consumer debts" means
722	that more than one-half of the person's income arises from the
723	business of soliciting consumer claims for collection or
724	collecting consumer claims.
725	(3)(c)  Any financial institution authorized to do business
726	in this state or and any wholly owned subsidiary or and
727	affiliate thereof.
728	(4)(d)  Any licensed real estate broker.
729	(5)(e)  Any insurance company authorized to do business in
730	this state.
731	(6)(f)  Any consumer finance company or and any wholly
732	owned subsidiary or and affiliate thereof.
733	(7)(g)  Any person licensed pursuant to chapter 520.
734	(8)(h)  Any out-of-state consumer debt collector who does
735	not solicit consumer debt accounts for collection from credit
736	grantors who have a business presence in this state.
737	(9)(i)  Any FDIC-insured institution or subsidiary or
738	affiliate thereof.
739	(5)  Any out-of-state consumer debt collector as defined in
740	s. 559.55(8) who is not exempt from registration by application
741	of subsection (4) and who fails to register in accordance with
742	this part shall be subject to an enforcement action by the state
743	as specified in s. 559.565.
744	Section 8.  Section 559.555, Florida Statutes, is amended
745	to read:
746	(Substantial rewording of section. See s.
747	559.555, Florida Statutes, for current text.)
748	559.555  Registration of consumer collection agencies;
749	procedure.--
750	(1)  A person may not engage in business in this state as a
751	consumer collection agency, as defined in this part, or continue
752	to do business in this state as a consumer collection agency
753	unless the person is registered with the office according to
754	this part and thereafter maintains the registration.
755	(2)  A registration is not valid for any consumer
756	collection agency transacting business at any place other than
757	that designated in the registration unless the office is first
758	notified in advance of any change of location.
759	(3)  A person who applies for registration as a consumer
760	collection agency in compliance with this part must do so on
761	forms adopted by the commission and furnished by the office. The
762	commission may establish by rule procedures for depositing fees
763	and filing documents by electronic means provided such
764	procedures provide the office with the information required by
765	this section. The commission or office may require each
766	applicant for a consumer collection agency registration to
767	provide:
768	(a)  A nonrefundable application fee in the amount of $900.
769	All amounts collected shall be deposited to the credit of the
770	Regulatory Trust Fund of the office.
771	(b)  The name of the applicant, any other names under which
772	the applicant conducts business, and the address of the
773	applicant's principal place of business and each office in this
774	state.
775	(c)  The applicant's form and place of organization and, if
776	the applicant is a corporation, a copy of the articles of
777	incorporation and amendments to such articles, if a partnership,
778	a copy of the partnership agreement, or, if limited liability
779	company, a copy of the articles of organization.
780	(d)  Documents demonstrating that the bonding requirements
781	specified in s. 559.556 have been satisfied.
782	(e)  Information and documentation necessary to make a
783	determination of the applicant's eligibility for registration.
784	(4)  The applicant shall also provide information as the
785	office may require about any partner, officer, or director of
786	the applicant, any person having the same or substantially
787	similar status or performing substantially similar functions, or
788	any person directly or indirectly controlling the applicant. For
789	purposes of this subsection, the term "directly or indirectly
790	controlling the applicant" means possessing the power to direct
791	or to cause the direction of the management or policies of a
792	company, whether through ownership of stock or securities, by
793	contract, or otherwise. Any individual or company that directly
794	or indirectly has the right to vote 25 percent or more of the
795	voting stock or securities of a company or is entitled to 25
796	percent or more of its profits is presumed to control that
797	company. The office may require information about any such
798	applicant or person, including:
799	(a)  His or her full name, current address, current
800	telephone number, date of birth, social security number, or
801	federal identification number of any corporate owner.
802	(b)  His or her previous 10-year educational or employment
803	history.
804	(c)  Any adverse decision, finding, injunction, suspension,
805	prohibition, revocation, denial, or judgment by any court of
806	competent jurisdiction or an administrative order by an
807	administrative law judge, by any state of federal agency, or by
808	any business, professional, or occupational association
809	involving a violation of any law, rule, or regulation relating
810	to business or professional licensing.
811	(d)  His or her commission of any acts which would be
812	grounds for denial of an application under subsection (10).
813	(5)  An initial application is deemed received for purposes
814	of s. 120.60 upon receipt of the completed application form
815	prescribed by commission rule, the nonrefundable application fee
816	of $900, and any other fee prescribed by law.
817	(6)  Upon the filing of an application for registration and
818	payment of all applicable fees, the office shall investigate the
819	applicant. If the office determines that registration should be
820	granted, it shall register the applicant for a period not to
821	exceed 1 year.
822	(7)  The registration of each consumer collection agency
823	will expire on December 31 of the year in which the registration
824	became effective unless the registrant has renewed its
825	registration on or before that date. A registration may be
826	renewed as the commission may require by rule, together with
827	payment of the $450 nonrefundable renewal fee and the payment of
828	any amount lawfully due and owing to the office pursuant to any
829	order of the office or pursuant to any agreement with the
830	office. A consumer collection agency that has not renewed its
831	registration by the time the registration period expires may
832	request reactivation of its registration. The registrant must
833	file its request with the office on or before January 31 of the
834	year following the year of expiration. The request must contain
835	any information the office requires, together with the
836	registration fee required in this section and a nonrefundable
837	reactivation fee in the amount of $250. Any reactivation of
838	registration granted by the office during the month of January
839	is deemed effective retroactive to January 1 of that year. Any
840	registrant that engages in business as a consumer collection
841	agency after its registration has expired violates subsection
842	(1), punishable as provided by ss. 559.785(1) and 559.730(6).
843	(8)  If the information contained in any application or any
844	amendment to the application has changed, the registrant shall
845	file an amendment on the forms prescribed by the commission
846	correcting such information within 30 days after the change.
847	(9)  A registration under this part is not transferable or
848	assignable unless accomplished pursuant to this subsection.
849	(a)  Changes in registration occasioned by changes in
850	personnel of a partnership or in the principals, copartners,
851	officers, or directors of any registrant or by changes of any
852	material fact shall be reported by written amendment in such
853	form and at such time as the commission may specify by rule. In
854	any case in which a person or a group of persons, directly or
855	indirectly or acting by or through one or more persons, proposes
856	to purchase or acquire a controlling interest in a registrant,
857	such person or group shall submit an initial application for
858	registration as a consumer collection agency prior to such
859	purchase or acquisition at such time and in such form as the
860	commission may prescribe by rule.
861	(b)  The commission shall adopt rules providing for waiver
862	of the application required by this subsection where control of
863	a registrant is to be acquired by another registrant under this
864	chapter or where the application is otherwise unnecessary in the
865	public interest.
866	(10)  The office may deny registration if the applicant,
867	any principal of the applicant, or any person having control of
868	the applicant:
869	(a)  Has committed any violation of s. 559.72;
870	(b)  Is the subject of a pending criminal prosecution or
871	governmental enforcement action, in any jurisdiction, until the
872	conclusion of such criminal prosecution or enforcement action;
873	(c)  Is currently subject to a pending enforcement action
874	by any federal authority for violations of the Fair Debt
875	Collection Practices Act or the Federal Trade Commission Act;
876	(d)  Has been found guilty of, regardless of adjudication,
877	or has entered a plea of nolo contendere or guilty to, any
878	offense involving fraud, dishonest dealing, or moral turpitude;
879	(e)  Has been found guilty of, regardless of adjudication,
880	or has entered a plea of nolo contendere or guilty to, any
881	felony;
882	(f)  Has had entered against him or her, or any business
883	for which he or she was directly or indirectly a controlling
884	person in the business or controlled the business, an
885	injunction, a temporary restraining order, or a final judgment
886	or order, including a stipulated judgment or order, an assurance
887	of voluntary compliance, or any similar document, in any civil
888	or administrative action involving racketeering, fraud, theft,
889	embezzlement, fraudulent conversion, or misappropriation of
890	property or the use of any untrue, deceptive, or misleading
891	representation in an attempt to sell or dispose of real or
892	personal property or the use of any unfair, unlawful, or
893	deceptive trade practice, whether or not there is any litigation
894	pending against the applicant;
895	(g)  Is subject to or was directly or indirectly a
896	controlling person in the business, or controlled the business,
897	with any company that is, or ever has been, subject to any
898	injunction, temporary restraining order, including a stipulated
899	judgment or order, an assurance of voluntary compliance or any
900	similar document, or any restrictive court order relating to
901	business activity as the result of any action brought by a
902	governmental agency, including any action affecting any license
903	to do business or practice an occupation or trade;
904	(h)  Falsified or willfully omitted any material
905	information asked for in any application, document, or record
906	required to be submitted under this part or the rules of the
907	commission;
908	(i)  Made a material false statement of fact in an
909	application for registration or in response to any request or
910	investigation by the office, the Department of Legal Affairs, or
911	the state attorney; or
912	(j)  Has been the subject of any adverse decision, finding,
913	injunction, suspension, prohibition, revocation, denial, or
914	judgment by any court of competent jurisdiction or an
915	administrative order by an administrative law judge, by any
916	state or federal agency, or by any business, professional, or
917	occupational association involving a violation of any law, rule,
918	or regulation relating to business or professional licensing.
919	Section 9.  Section 559.556, Florida Statutes, is created
920	to read:
921	559.556  Surety bond.--
922	(1)  Before the office may issue a registration, the
923	applicant must provide to the office a corporate surety bond,
924	issued by a bonding company or insurance company authorized to
925	do business in this state.
926	(2)  The corporate surety bond shall be in the amount of
927	$25,000, paid for and issued for the benefit of any credit
928	grantor against the registrant to secure the faithful
929	performance of the obligations of the registrant with respect to
930	the receipt, handling, and payment of funds collected by the
931	registrant.
932	(3)  If multiple claims are filed against the surety on any
933	bond in excess of the amount of the bond, the surety may pay the
934	full amount of the bond to the office and is not further liable
935	under the bond. The office shall hold the funds for distribution
936	to claimants and pay to each claimant the pro rata share of each
937	valid claim made against the funds within 6 months after the
938	date of the filing of the first claim against the surety.
939	(4)  A corporate surety bond filed with the office for
940	purposes of compliance with this section may not be cancelled by
941	the registrant or the corporate surety except upon written
942	notice to the office by registered or certified mail with return
943	receipt requested. A cancellation shall not take effect less
944	than 30 days after receipt by the office of such written notice.
945	(5)  The corporate surety shall, within 10 days after the
946	surety pays any claim to a claimant, give written notice to the
947	office by registered or certified mail of such payment with
948	details sufficient to identify the claimant and the claim or
949	judgment so paid.
950	(6)  Whenever the principal sum of such bond is reduced by
951	one or more recoveries or payments, the registrant shall furnish
952	a new or additional bond so that the total or aggregate
953	principal sum of such bonds equals the sum required by this
954	section. Alternatively, a registrant may furnish an endorsement
955	executed by the corporate surety reinstating the bond to the
956	required principal sum.
957	Section 10.  Section 559.72, Florida Statutes, is amended
958	to read:
959	559.72  Standards of conduct Prohibited practices
960	generally.--
961	(1)  In collecting consumer debts, a no person may not
962	shall:
963	(a)(1)  Simulate in any manner a law enforcement officer or
964	a representative of any governmental agency;
965	(b)(2)  Use or threaten force, or violence, or any other
966	means to harm the physical person, property, or reputation of
967	any person;
968	(c)(3)  Tell a debtor who disputes a consumer debt that she
969	or he or any person employing her or him will disclose to
970	another, orally or in writing, directly or indirectly,
971	information affecting the debtor's reputation for credit
972	worthiness without also informing the debtor that the existence
973	of the dispute will also be disclosed as required by paragraph
974	(f) subsection (6);
975	(d)(4)  Communicate or threaten to communicate with a
976	debtor's employer prior to obtaining final judgment against the
977	debtor, unless the debtor gives her or his permission in writing
978	to contact her or his employer or acknowledges in writing the
979	existence of the debt after the debt has been placed for
980	collection, but this shall not prohibit a person from telling
981	the debtor that her or his employer will be contacted if a final
982	judgment is obtained;
983	(e)(5)  Disclose to a person other than the debtor or her
984	or his family information affecting the debtor's reputation,
985	whether or not for credit worthiness, with knowledge or reason
986	to know that the other person does not have a legitimate
987	business need for the information or that the information is
988	false;
989	(f)(6)  Disclose information concerning the existence of a
990	debt known to be reasonably disputed by the debtor without
991	disclosing that fact. If a disclosure is made prior to such
992	reasonable dispute having been asserted and written notice is
993	received from the debtor that any part of the debt is disputed
994	and if such dispute is reasonable, the person who made the
995	original disclosure shall reveal upon the request of the debtor
996	within 30 days the details of the dispute to each person to whom
997	disclosure of the debt without notice of the dispute was made
998	within the preceding 90 days;
999	(g)(7)  Willfully communicate with the debtor or any member
1000	of her or his family with such frequency as can reasonably be
1001	expected to harass the debtor or her or his family, or willfully
1002	engage in other conduct which can reasonably be expected to
1003	abuse or harass the debtor or any member of her or his family;
1004	(h)(8)  Use profane, obscene, vulgar, or willfully abusive
1005	language in communicating with the debtor or any member of her
1006	or his family;
1007	(i)(9)  Claim, attempt, or threaten to enforce a debt when
1008	such person knows that the debt is not legitimate or assert the
1009	existence of some other legal right when such person knows that
1010	the right does not exist;
1011	(j)(10)  Use a communication which simulates in any manner
1012	legal or judicial process or which gives the appearance of being
1013	authorized, issued or approved by a government, governmental
1014	agency, or attorney at law, when it is not;
1015	(k)(11)  Communicate with a debtor under the guise of an
1016	attorney by using the stationery of an attorney or forms or
1017	instruments which only attorneys are authorized to prepare;
1018	(l)(12)  Orally communicate with a debtor in such a manner
1019	as to give the false impression or appearance that such person
1020	is or is associated with an attorney;
1021	(m)(13)  Advertise or threaten to advertise for sale any
1022	debt as a means to enforce payment except under court order or
1023	when acting as an assignee for the benefit of a creditor;
1024	(n)(14)  Publish or post, threaten to publish or post, or
1025	cause to be published or posted before the general public
1026	individual names or any list of names of debtors, commonly known
1027	as a deadbeat list, for the purpose of enforcing or attempting
1028	to enforce collection of consumer debts;
1029	(o)(15)  Refuse to provide adequate identification of
1030	herself or himself or her or his employer or other entity whom
1031	she or he represents when requested to do so by a debtor from
1032	whom she or he is collecting or attempting to collect a consumer
1033	debt;
1034	(p)(16)  Mail any communication to a debtor in an envelope
1035	or postcard with words typed, written, or printed on the outside
1036	of the envelope or postcard indicating that the purpose of the
1037	communication is to collect a debt or is otherwise calculated to
1038	embarrass the debtor. An example of this would be an envelope
1039	addressed to "Deadbeat, Jane Doe" or "Deadbeat, John Doe";
1040	(q)(17)  Communicate with the debtor between the hours of 9
1041	p.m. and 8 a.m. in the debtor's time zone, at any unusual time
1042	or place, or a time or place that is known or should be known to
1043	be inconvenient for the debtor without the prior consent of the
1044	debtor;
1045	(r)(18)  Communicate with a debtor if the person knows that
1046	the debtor is represented by an attorney with respect to such
1047	debt and has knowledge of, or can readily ascertain, such
1048	attorney's name and address, unless the debtor's attorney fails
1049	to respond within a reasonable period of time to a communication
1050	from the person, unless the debtor's attorney consents to a
1051	direct communication with the debtor, or unless the debtor
1052	initiates the communication; or
1053	(s)(19)  Cause charges to be made to any debtor for
1054	communications by concealment of the true purpose of the
1055	communication, including collect telephone calls and telegram
1056	fees.
1057	(2)  Any debt collector communicating with any person other
1058	than the consumer for the purpose of acquiring location
1059	information about the consumer:
1060	(a)  Shall identify himself or herself, state that he or
1061	she is confirming or correcting location information concerning
1062	the consumer, and, only if expressly requested, identify his or
1063	her employer.
1064	(b)  May not:
1065	1.  State that such consumer owes a debt;
1066	2.  Communicate with any such person more than once unless
1067	requested to do so by such person or unless the debt collector
1068	reasonably believes that the earlier response of such person is
1069	erroneous or incomplete and that such person now has correct or
1070	complete location information; or
1071	3.  Communicate by postcard.
1072	(3)  Without prior consent of the consumer given directly
1073	to the debt collector or express permission of a court of
1074	competent jurisdiction, a debt collector may not communicate
1075	with a consumer in connection with the collection of any debt at
1076	the consumer's place of employment if the debt collector knows
1077	or has reason to know that the consumer's employer prohibits the
1078	consumer from receiving such communication.
1079	(4)  Except as provided in subsection (2), without the
1080	prior consent of the consumer given directly to the debt
1081	collector, or the express permission of a court of competent
1082	jurisdiction, or as reasonably necessary to effectuate a
1083	postjudgment remedy, a debt collector may not communicate, in
1084	connection with the collection of any debt, with any person
1085	other than a consumer, the consumer's attorney, a consumer
1086	reporting agency if otherwise permitted by law, the creditor,
1087	the creditor's attorney, or the debt collector's attorney.
1088	(5)  If a consumer notifies a debt collector in writing
1089	that the consumer refuses to pay a debt or that the consumer
1090	wishes the debt collector to cease further communication with
1091	the consumer, the debt collector shall not communicate further
1092	with the consumer with respect to such debt, except to:
1093	(a)  Advise the consumer that the debt collector's further
1094	efforts are being terminated;
1095	(b)  Notify the consumer that the debt collector or
1096	creditor may invoke specified remedies which are ordinarily
1097	invoked by such debt collector or creditor; or
1098	(c)  Where applicable, notify the consumer that the debt
1099	collector or creditor intends to invoke a specified remedy.
1100	If such notice from the consumer is made by mail, notification
1101	shall be complete upon receipt.
1102	(6)  For the purpose of subsection (5), the term "consumer"
1103	includes the consumer's spouse, parent if the consumer is a
1104	minor, guardian, executor, or administrator.
1105	(7)  A debt collector may not use any false, deceptive, or
1106	misleading representation or means in connection with the
1107	collection of any debt. Without limiting the general application
1108	of such prohibition, the following conduct is a violation of
1109	this subsection:
1110	(a)  The false representation of:
1111	1.  The character, amount, or legal status of any debt; or
1112	2.  Any services rendered or compensation which may be
1113	lawfully received by any debt collector for the collection of a
1114	debt.
1115	(b)  The representation or implication that nonpayment of
1116	any debt will result in the arrest or imprisonment of any person
1117	or the seizure, garnishment, attachment, or sale of any property
1118	or wages of any person unless such action is lawful and the debt
1119	collector or creditor intends to take such action.
1120	(c)  The false representation or implication that a sale,
1121	referral, or other transfer of any interest in a debt shall
1122	cause the consumer to:
1123	1.  Lose any claim or defense to payment of the debt; or
1124	2.  Become subject to any practice prohibited by this
1125	subsection.
1126	(d)  The false representation or implication that the
1127	consumer committed any crime or other conduct in order to
1128	disgrace the consumer.
1129	(e)  The use of any false representation or deceptive means
1130	to collect or attempt to collect any debt or to obtain
1131	information concerning a consumer.
1132	(f)  The failure to disclose in the initial communication
1133	that the debt collector is attempting to collect a debt and that
1134	any information obtained will be used for that purpose, and the
1135	failure to disclose in subsequent communications that the
1136	communication is from a debt collector, except this paragraph
1137	does not apply to a formal pleading made in connection with a
1138	legal action.
1139	(g)  The false representation or implication that accounts
1140	have been turned over to innocent purchasers for value.
1141	(h)  The use of any business, company, or organization name
1142	other than the true name of the debt collector's business,
1143	company, or organization.
1144	(i)  The false representation or implication that documents
1145	are not legal process forms or do not require action by the
1146	consumer.
1147	(j)  The false representation or implication that a debt
1148	collector operates or is employed by a consumer reporting
1149	agency.
1150	(8)  A debt collector may not use unfair or unconscionable
1151	means to collect or attempt to collect any debt. Without
1152	limiting the general application of such prohibition, the
1153	following conduct is a violation of this section:
1154	(a)  Collecting any amount, including any interest, fee,
1155	charge, or expense incidental to the principal obligation,
1156	unless such amount is expressly authorized by the agreement
1157	creating the debt or permitted by law.
1158	(b)  The acceptance by a debt collector from any person of
1159	a check or other payment instrument postdated by more than 5
1160	days unless such person is notified in writing of the debt
1161	collector's intent to deposit such check or instrument not more
1162	than 10 nor less than 3 business days prior to such deposit.
1163	(c)  The solicitation by a debt collector of any postdated
1164	check or postdated payment instrument for the purpose of
1165	threatening or instituting criminal prosecution.
1166	(d)  Depositing or threatening to deposit any postdated
1167	check or other postdated payment instrument prior to the date on
1168	such check or instrument.
1169	(e)  Taking or threatening to take any nonjudicial action
1170	to effect dispossession or disablement of property if:
1171	1.  There is no present right to possession of the property
1172	claimed as collateral through an enforceable security interest;
1173	2.  There is no present intention to take possession of the
1174	property; or
1175	3.  The property is exempt by law from such dispossession
1176	or disablement.
1177	(f)  Communicating with a consumer regarding a debt by post
1178	card.
1179	(9)  Within 5 days after the initial communication with a
1180	consumer in connection with the collection of any debt, a debt
1181	collector shall, unless the following information is contained
1182	in the initial communication or the consumer has paid the debt,
1183	send the consumer a written notice containing:
1184	(a)  The amount of the debt.
1185	(b)  The name of the creditor to whom the debt is owed.
1186	(c)  A statement that unless the consumer, within 30 days
1187	after receipt of the notice, disputes the validity of the debt,
1188	or any portion thereof, the debt will be assumed to be valid by
1189	the debt collector.
1190	(d)  A statement that if the consumer notifies the debt
1191	collector in writing within the 30-day period that the debt, or
1192	any portion thereof, is disputed, the debt collector will obtain
1193	verification of the debt or a copy of the judgment against the
1194	consumer and a copy of such verification or judgment will be
1195	mailed to the consumer by the debt collector.
1196	(e)  A statement that, upon the consumer's written request
1197	within the 30-day period, the debt collector will provide the
1198	consumer with the name and address of the original creditor, if
1199	different from the current creditor.
1200	(10)  If the consumer notifies the debt collector in
1201	writing within the 30-day period described in subsection (9)
1202	that the debt, or any portion thereof, is disputed, or that the
1203	consumer requests the name and address of the original creditor,
1204	the debt collector shall cease collection of the debt, or any
1205	disputed portion thereof, until the debt collector obtains
1206	verification of the debt or any copy of a judgment, or the name
1207	and address of the original creditor, and a copy of such
1208	verification or judgment, or name and address of the original
1209	creditor, is mailed to the consumer by the debt collector.
1210	(11)  The failure of a consumer to dispute the validity of
1211	a debt under this section may not be construed by any court as
1212	an admission of liability by the consumer.
1213	(12)  If any consumer owes multiple debts and makes any
1214	single payment to any debt collector with respect to such debts,
1215	such debt collector may not apply such payment to any debt which
1216	is disputed by the consumer and, where applicable, shall apply
1217	such payment in accordance with the consumer's directions.
1218	(13)  Any debt collector who brings any legal action on a
1219	debt against any consumer shall:
1220	(a)  In the case of an action to enforce an interest in
1221	real property securing the consumer's obligation, bring such
1222	action only in a judicial district or similar legal entity in
1223	which such real property is located; or
1224	(b)  In the case of an action not described in paragraph
1225	(a), bring such action only in the judicial district or similar
1226	legal entity:
1227	1.  In which such consumer signed the contract sued upon;
1228	or
1229	2.  In which such consumer resides at the commencement of
1230	the action.
1231	(c)  Nothing in this subsection shall be construed to
1232	authorize the bringing of legal actions by debt collectors.
1233	(14)  It is unlawful to design, compile, and furnish any
1234	form knowing such form would be used to create the false belief
1235	in a consumer that a person other than the creditor of such
1236	consumer is participating in the collection of or in an attempt
1237	to collect a debt such consumer allegedly owes such creditor,
1238	when in fact such person is not so participating.
1239	(15)  Any person who violates this section is liable to the
1240	same extent and in the same manner as a debt collector is liable
1241	under s. 559.813 for failure to comply with a provision of this
1242	part.
1243	Section 11.  Section 559.725, Florida Statutes, is amended
1244	to read:
1245	(Substantial rewording of section. See s.
1246	559.725, Florida Statutes, for current text.)
1247	559.725  Consumer complaints.--
1248	(1)  Any person having reason to believe that this part has
1249	been violated may file a written complaint with the office or
1250	the Division of Consumer Services of the Department of Financial
1251	Services setting forth the details of the alleged violation.
1252	(2)  Any government office or agency receiving a complaint
1253	under this section shall advise any other government office or
1254	agency with apparent jurisdiction, including the office, the
1255	appropriate state attorney, or the Attorney General in the case
1256	of an out-of-state consumer debt collector, of any determination
1257	by that agency of a violation, or possible violation, of the
1258	requirements of this part by any consumer collection agency,
1259	whether or not registered or exempt from registration as
1260	required by this part.
1261	Section 12.  Sections 559.726, 559.7262, 559.7263,
1262	559.7264, and 559.7265, Florida Statutes, are created to read:
1263	559.726  Powers and duties of the Office of Financial
1264	Regulation.--
1265	(1)  Compliance with this part shall be enforced by the
1266	office, except when enforcement is specifically assigned to
1267	another agency.
1268	(2)  The office may conduct an investigation or examination
1269	of any person, within or outside this state, which the office
1270	believes is necessary in order to determine whether a person has
1271	violated this chapter or the rules adopted by the commission.
1272	The office shall provide no less than 15 days' advance notice of
1273	any examination or investigation of a commercial collection
1274	agency. However, if the office suspects that the commercial
1275	collection agency has violated any provision of this code or any
1276	criminal laws of this state or of the United states or is
1277	engaging in an unsafe and unsound practice, the office may, at
1278	any time without advance notice, conduct an examination or
1279	investigation of all affairs, activities, transactions,
1280	accounts, business records, and assets of any commercial
1281	collection agency for the protection of the public.
1282	(3)  The commission may adopt rules under ss. 120.536(1)
1283	and 120.54 to implement and administer this part.
1284	(4)  The commission may adopt a rule:
1285	(a)  Requiring electronic submission of any form, document,
1286	or fee required by this part, provided the rule reasonably
1287	accommodates a person with a technological or financial
1288	hardship.
1289	(b)  Setting forth the criteria and procedures for
1290	obtaining an exemption due to a technological or financial
1291	hardship.
1292	(c)  Accepting certification of compliance with the
1293	requirements of this part in lieu of requiring submission of
1294	specified documents.
1295	(5)  All fees, charges, and fines collected by the office
1296	under this part shall be deposited to the credit of the
1297	Regulatory Trust Fund of the office.
1298	(6)  The office may:
1299	(a)  Issue, revoke, quash, or modify and serve subpoenas to
1300	compel the attendance of witnesses and subpoenas duces tecum to
1301	compel the production of all books, accounts, records, and other
1302	documents and materials relevant to an examination or
1303	investigation. The office may exercise these powers even if the
1304	subject of the investigation or examination is exempt from
1305	registration.
1306	(b)  Administer oaths and affirmations to any person.
1307	(c)  Take, or cause to be taken, testimony and depositions.
1308	(7)(a)  In the event of noncompliance with a subpoena or
1309	subpoena duces tecum the office issued or caused to be issued,
1310	the office may petition a court of competent jurisdiction in the
1311	county in which the person subpoenaed resides or has her, his,
1312	or its principal place of business for an order requiring the
1313	person to appear and testify and to produce the books, accounts,
1314	records, and other documents that are specified in the subpoena
1315	duces tecum.
1316	(b)  A copy of the petition shall be served upon the person
1317	subpoenaed by any person authorized by this section to serve
1318	subpoenas, who shall make and file with the court an affidavit
1319	showing the time, place, and date of service.
1320	(c)  At a hearing on the petition to enforce compliance
1321	with a subpoena, the person subpoenaed, or any person whose
1322	interest will be substantially affected by the investigation,
1323	examination, or subpoena, may appear and object to the subpoena
1324	and to the granting of the petition. The court may make any
1325	order that justice requires in order to protect a party or other
1326	person and her or his personal and property rights, including,
1327	but not limited to, protection from annoyance, embarrassment,
1328	oppression, undue burden, or expense.
1329	(d)  Failure to comply with an order granting, in whole or
1330	in part, a petition to enforce a subpoena is a contempt of the
1331	court.
1332	(8)  Witnesses are entitled to the same fees and mileage to
1333	which they would be entitled by law for attending as witnesses
1334	in circuit court, except fees or mileage may not be allowed for
1335	testimony of a person taken at the person's principal office or
1336	residence.
1337	(9)  Reasonable and necessary costs incurred by the office
1338	during an investigation may be assessed against any debt
1339	collector on the basis of actual costs incurred. Assessed
1340	expenses may include, but are not limited to, expenses for
1341	interpreters; expenses for communications; expenses for legal
1342	representation; expenses for economic, legal, or other research;
1343	analysis and testimony; and fees and expenses for witnesses. The
1344	failure to reimburse the office for its reasonable and necessary
1345	costs is a reason to deny a registrant's application or to
1346	revoke the prior approval of an application.
1347	559.7262  Injunction to restrain violations; receivers.--
1348	(1)  The office may bring an action on behalf of the state
1349	to enjoin any person who has violated, or who is about to
1350	violate, this part or any rule or order of the office issued
1351	under this part.
1352	(2)  In an injunctive proceeding, the court may issue a
1353	subpoena requiring the attendance of any witness or a subpoena
1354	duces tecum requiring the production of any book, account,
1355	record, or other documents and materials relevant to the pending
1356	case.
1357	(3)(a)  In addition to any procedure provided by law for
1358	enforcing a temporary restraining order or a temporary or
1359	permanent injunction, the court may, upon application of the
1360	office, impound the property, assets, and business of the
1361	registrant, including, but not limited to, the books, records,
1362	documents, and papers of the registrant. The court may appoint a
1363	receiver to administer the property. The receiver, when
1364	appointed and qualified, has the powers and duties that are
1365	conferred by the court.
1366	(b)  After appointing the receiver, the court may issue an
1367	order staying all pending suits and enjoining any further
1368	litigation affecting the receiver's custody or possession of the
1369	property, assets, and business, and the court, with the consent
1370	of the chief judge of the circuit, may require that all suits be
1371	assigned to the circuit court judge who appointed the receiver.
1372	559.7263  Cease and desist orders; refund orders.--
1373	(1)  The office may issue and serve upon a person an order
1374	to cease and desist and to take corrective action whenever the
1375	office has reason to believe that the person is violating, has
1376	violated, or is about to violate this part, any rule or order of
1377	the office issued under this part, or any written agreement
1378	between the person and the office. Procedural matters relating
1379	to issuance and enforcement of such a cease and desist order are
1380	governed by chapter 120.
1381	(2)  The office may seek an order of restitution from a
1382	court of competent jurisdiction for collected funds due to
1383	creditors or any sum collected from a debtor without valid proof
1384	of debt.
1385	559.7264  Evidence; examiner's worksheets, investigative
1386	reports, other related documents.--An official written report,
1387	sworn complaint, worksheet, or other related paper, or a duly
1388	certified copy thereof, compiled, prepared, drafted, or
1389	otherwise made by the financial examiner is admissible into
1390	evidence if the financial examiner is available for cross-
1391	examination; authenticates the worksheet; and testifies that the
1392	report, worksheet, or related document was prepared as a result
1393	of an examination of the books and records of a registrant or
1394	other person conducted under the authority of this part.
1395	559.7265  Books, accounts, and records; maintenance;
1396	examinations by the office.--
1397	(1)  Each registrant shall maintain, at its principal place
1398	of business designated on the registration, all books, accounts,
1399	records, and documents necessary to determine the registrant's
1400	compliance with this part.
1401	(2)  The office may authorize maintenance of records at a
1402	location other than a principal place of business. The office
1403	may require books, accounts, and records to be produced and
1404	available at a reasonable and convenient location in this state.
1405	(3)  All books, accounts, records, documents, and receipts
1406	for payments to a registrant by a debtor, and payments made to a
1407	creditor by a registrant, shall be preserved and kept available
1408	for examination by the department for 3 years after the date of
1409	original entry. The commission shall adopt requirements by rule
1410	for maintaining the books, accounts, records, and documents
1411	retained by the registrant and for destroying the records.
1412	(4)  The commission shall designate by rule the minimum
1413	information that must be contained in the registrant's books,
1414	accounts, records, and documents of a registrant to enable the
1415	office to determine a registrant's compliance with this part.
1416	Section 13.  Section 559.730, Florida Statutes, is amended
1417	to read:
1418	(Substantial rewording of section. See s.
1419	559.730, Florida Statutes, for current text.)
1420	559.730  Administrative remedies.--
1421	(1)  The office may revoke or suspend the registration of
1422	any registrant under this part who:
1423	(a)  Has been found guilty of, regardless of adjudication,
1424	or has entered a plea of nolo contendere or guilty to, any crime
1425	involving fraud, dishonest dealing, or moral turpitude;
1426	(b)  Has had a final judgment entered against the person in
1427	a civil action upon the grounds of fraud, embezzlement,
1428	misrepresentation, or deceit;
1429	(c)  Has had any business, professional, or occupational
1430	license or registration suspended, revoked, or otherwise acted
1431	against in any jurisdiction;
1432	(d)  Fails to maintain the surety bond required pursuant to
1433	s. 559.556;
1434	(e)  Fails to maintain books and records as required by s.
1435	559.7265;
1436	(f)  Violates any provision of this part, any rule or order
1437	adopted pursuant to this part, or any written agreement entered
1438	into with the office; or
1439	(g)  Paid for a registration with a check or electronic
1440	transmission of funds which failed to clear the registrant's
1441	financial institution;
1442	(h)  Falsified or willfully omitted any material
1443	information asked for in any application, document, or record
1444	required to be submitted under this part or the rules of the
1445	commission;
1446	(i)  Made a material false statement of fact in an
1447	application for registration or in response to any request or
1448	investigation by the office; or
1449	(j)  Has a person, who directly or indirectly controls the
1450	applicant as defined in s. 559.555(4), that is subject to an
1451	action, or commits an act, contemplated by paragraph (a),
1452	paragraph (b), paragraph (c), paragraph (f), paragraph (h), or
1453	paragraph (i).
1454	(2)  A registrant may request termination of its
1455	registration by delivering written notice of its proposed
1456	termination to the office. However, the delivery of the
1457	termination notice does not affect any civil or criminal
1458	liability of the registrant or the authority of the office to
1459	enforce this part.
1460	(3)  The office may deny a request to terminate a
1461	registration or to withdraw an application for registration if
1462	the office believes that the registrant has committed an act
1463	that would be grounds for denial, suspension, or revocation
1464	under this part.
1465	(4)  Final action by the office to revoke or suspend the
1466	registration of a registrant is subject to review according to
1467	chapter 120 in the same manner as revocation of a license.
1468	(5)  The office may impose an administrative fine of up to
1469	$1,000 per violation of this section or s. 559.555, s. 559.556,
1470	s. 559.72, or s. 559.7265 against an offending registrant or
1471	person as an administrative sanction. Final action by the office
1472	to impose an administrative fine is subject to review in
1473	accordance with ss. 120.569 and 120.57.
1474	(6)  Notwithstanding any other provision of this section,
1475	the office may impose a fine not to exceed $1,000 per day for
1476	each day that a person violates the code by engaging in the
1477	business of a consumer collection agency without being
1478	registered.
1479	(7)  Any administrative fine imposed under this part shall
1480	be payable to the office. The office shall maintain an
1481	appropriate record and deposit the fine into the Regulatory
1482	Trust Fund of the office.
1483	(8)  An administrative action by the office to impose
1484	revocation, suspension, or a fine must be brought within 5 years
1485	after the date of the last violation upon which the action is
1486	founded.
1487	(9)  The remedies under this part are in addition to
1488	remedies otherwise available for the same conduct under state or
1489	local law.
1490	Section 14.  Section 559.735, Florida Statutes, is created
1491	to read:
1492	559.735  Administrative guidelines.--In imposing any
1493	administrative remedy or penalty provided for in this part, the
1494	office shall take into account the appropriateness of the
1495	penalty with respect to the amount of financial resources and
1496	good faith of the person charged, the gravity of the violation,
1497	the history of previous violations, and such other matters as
1498	justice may require.
1499	Section 15.  Subsections (1) and (5) of section 559.77,
1500	Florida Statutes, are amended to read:
1501	559.77  Civil remedies.--
1502	(1)  A debtor may bring a civil action against a person
1503	violating the provisions of s. 559.72(1) in a court of competent
1504	jurisdiction of the county in which the alleged violator resides
1505	or has his or her principal place of business or in the county
1506	wherein the alleged violation occurred.
1507	(5)  In applying and construing this section, due
1508	consideration and great weight shall be given to the
1509	interpretations of the Federal Trade Commission and the federal
1510	courts relating to the federal Fair Debt Collection Practices
1511	Act and the Federal Trade Commission Act. If there is an
1512	inconsistency between this part and an interpretation of the
1513	federal acts, the provision that is more protective of the
1514	consumer or debtor shall prevail.
1515	Section 16.  Section 559.785, Florida Statutes, is amended
1516	to read:
1517	559.785  Criminal penalty.--
1518	(1)  It is shall be a felony misdemeanor of the third first
1519	degree, punishable as provided in s. 775.082, or s. 775.083, or
1520	s. 775.084, for any person not exempt from registering as
1521	provided in this part to:
1522	(a)  Operate or solicit business as a consumer collection
1523	agency engage in collecting consumer debts in this state without
1524	first registering with the office;, or to
1525	(b)  Register or attempt to register by means of fraud,
1526	misrepresentation, or concealment;
1527	(c)  Engage in any consumer debt collection activity after
1528	suspension or revocation of the registrant's registration under
1529	s. 559.730(1); or
1530	(d)  Engage in any consumer debt collection activity while
1531	under a temporary or permanent injunction issued under s.
1532	559.78.
1533	(2)  Each of the following acts constitutes a misdemeanor
1534	of the second degree, punishable as provided in s. 775.082 or s.
1535	775.083:
1536	(a)  Relocating a business as a consumer collection agency
1537	or operating under any name other than that designated in the
1538	registration, unless written notification is given to the office
1539	and to the surety or sureties on the original bond.
1540	(b)  Assigning or attempting to assign a registration under
1541	this part.
1542	(3)  The office may refer evidence concerning a violation
1543	of this part, or of any rule or order, to any criminal
1544	prosecutorial agency that may, with or without the reference and
1545	in addition to any other action it might commence, bring an
1546	action against any person to enjoin, restrain, and prevent the
1547	commission of any prohibited act or practice.
1548	Section 17.  Section 559.786, Florida Statutes, is created
1549	to read:
1550	559.786  Annual report.--The Office of Financial Regulation
1551	shall submit a report on January 1, 2006, and biannually
1552	thereafter, to the President of the Senate and the Speaker of
1553	the House of Representatives containing findings and conclusions
1554	concerning the effectiveness of the consumer and commercial
1555	collection practices acts in preventing fraud, abuse, and other
1556	unlawful activity associated with the collection of commercial
1557	and consumer debts. The report shall include a summary of the
1558	type and number of complaints received by the office or the
1559	Division of Consumer Services of the Department of Financial
1560	Services. The summary shall identify the nature and number of
1561	the various kinds of complaints received. The report may further
1562	contain legislative recommendations concerning the efficacy of
1563	the consumer and commercial practices act.
1564	Section 18.  Sections 559.547, 559.563, and 559.565,
1565	Florida Statutes, are repealed.
1566	Section 19.  For the 2005-2006 fiscal year, six positions
1567	are authorized and the sum of $428,588 is appropriated from the
1568	Regulatory Trust Fund to the Office of Financial Regulation for
1569	the purpose of enforcing this act. The six positions shall
1570	consist of five examiners and one registration analyst.
1571	Section 20.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.