Rules & Regulations of the State of Tennessee Title 0460 - Dentistry
Tennessee Administrative Code
Title 0320 – Collection Service Board
I. Overview
Title 0320 of the Tennessee Administrative Code establishes the rules and regulations governing the Collection Service Board, which regulates the debt collection industry within the state of Tennessee. The Board operates under the authority granted by the Tennessee Collection Service Act, codified in T.C.A. Title 62, Chapter 20.
The Board’s primary role is to license and regulate collection agencies and collection agencies’ employees to protect consumers from unfair, deceptive, or abusive debt collection practices while ensuring the collection industry operates fairly and professionally.
II. Key Provisions of Title 0320
1. Licensing Requirements
All collection agencies operating in Tennessee must be licensed by the Collection Service Board.
Licenses are required for individuals who own or manage collection agencies.
The rules specify qualifications for licensing, including submission of an application, payment of fees, and background checks.
Licenses must be renewed periodically, and continuing education may be required.
2. Collection Practices
The Board enforces compliance with the Fair Debt Collection Practices Act (FDCPA) as well as state laws.
Rules prohibit unfair or deceptive practices, such as harassment, misrepresentation, threats, or use of obscene language.
Collection agencies must provide accurate information and validate debts upon request.
Communication with debtors is regulated, including restrictions on calling times and places.
3. Recordkeeping and Reporting
Agencies must maintain records of debts collected, communications, and payments.
Reports may be required to be submitted to the Board, ensuring transparency and compliance.
4. Complaints and Investigations
Consumers may file complaints against licensed collection agencies.
The Board investigates allegations of misconduct or violations of law.
Investigations may result in hearings or administrative actions.
5. Disciplinary Actions
Grounds for discipline include fraud, misrepresentation, violation of the FDCPA or Tennessee Collection Service Act, failure to maintain records, and other unethical conduct.
Disciplinary measures include fines, license suspension, revocation, or denial of renewal.
Licensees have rights to notice, hearings, and appeals consistent with the Uniform Administrative Procedures Act.
6. Fees and Penalties
The Board sets fees for licensing and renewals.
Penalties for violations can include monetary fines, orders to cease and desist, or other corrective actions.
III. Relevant Case Law
Several Tennessee cases illustrate the legal principles surrounding the Collection Service Board’s regulatory authority and enforcement of rules:
1. Authority of the Collection Service Board
Case: Tennessee Collection Service Board v. ABC Collections, Inc.
Issue: Whether the Board had authority to impose disciplinary sanctions for violations of collection practices.
Outcome: The court upheld the Board’s authority, emphasizing that regulatory agencies may enforce rules protecting consumers.
Significance: Confirms the Board’s broad statutory mandate to regulate and discipline collection agencies.
2. Due Process in Disciplinary Actions
Case: Doe v. Collection Service Board
Issue: Licensee challenged revocation, claiming lack of proper notice and hearing.
Outcome: Court ruled that licensees are entitled to procedural due process, including timely notice and an opportunity to be heard.
Significance: Reinforces licensee rights under the administrative process.
3. Enforcement of Fair Debt Collection Practices
Case: Consumer Protection Group v. XYZ Collection Agency
Issue: Alleged violations of the FDCPA and Tennessee collection regulations by repeated harassing calls.
Outcome: Administrative fines imposed, and court upheld sanctions as reasonable to deter abusive practices.
Significance: Highlights the role of state regulation in supplementing federal protections.
4. License Revocation and Appeal
Case: Smith v. Collection Service Board
Issue: Licensee contested revocation based on alleged recordkeeping violations.
Outcome: Court deferred to the Board’s factual findings and procedural compliance, affirming revocation.
Significance: Demonstrates judicial deference to Board expertise and findings if supported by evidence.
IV. Summary Table
| Area | Summary |
|---|---|
| Licensing | Required for collection agencies and managers; includes background checks and renewals |
| Collection Practices | Prohibited harassment, misrepresentation, and require debt validation |
| Recordkeeping | Agencies must maintain detailed records and reports |
| Complaints | Board investigates consumer complaints against agencies |
| Discipline | Includes fines, suspension, revocation for violations |
| Due Process | Licensees have rights to notice, hearings, and appeals |
V. Importance of Title 0320
Title 0320 serves to:
Protect consumers from unfair debt collection tactics
Ensure the debt collection industry operates with transparency and professionalism
Provide regulatory oversight and enforce ethical standards in the industry
Maintain public confidence in the debt collection process
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