SENATE BILL 550

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Michael S. Sanchez

AN ACT

RELATING TO DEBT COLLECTION; RESTRICTING EFFORTS TO CONTACT DEBTORS; PROVIDING PENALTIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 61-18A-1 NMSA 1978 (being Laws 1987, Chapter 252, Section 1) is amended to read:

     "61-18A-1. SHORT TITLE.--[This act] Chapter 61, Article 18A NMSA 1978 may be cited as the "Collection Agency Regulatory Act"."

     SECTION 2. A new section of the Collection Agency Regulatory Act is enacted to read:

     "[NEW MATERIAL] RESTRICTIONS ON EFFORTS TO CONTACT DEBTORS--PENALTIES.--

          A. A debt collector shall not contact by telephone or a similar communication method a person whom the debt collector believes is a debtor unless the debt collector knows the first and last name and the last known physical address of the alleged debtor and the first and last name and the physical address of the person to be contacted by the debt collector.

          B. A debt collector shall not contact by telephone or a similar communication method a person whom the debt collector believes is a debtor unless the person to be contacted has the same first and last name and physical address as the alleged debtor.

          C. Whenever a debt collector contacts by telephone or a similar communication method a person whom the debt collector believes is a debtor, the debt collector shall provide the person contacted with the following information:

                (1) the name of the person calling and the name and address of the creditor or collection agency on whose behalf the person is calling; and

                (2) a toll-free telephone number that the person believed to be a debtor can call to verify the identity of the debt collector.

          D. A debt collector that violates the provisions of this section is guilty of a misdemeanor and shall be sentenced pursuant to the provisions of Section 31-19-1 NMSA 1978.

          E. The collection agency and the creditor on whose behalf a debt collector is acting shall, if the debt collector violates the provisions of this section, be liable for a civil penalty not to exceed one hundred fifty thousand dollars ($150,000), which penalty may be imposed by the director pursuant to rule."

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