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H. 3810
STATUS INFORMATION
General Bill
Sponsors: Rep. Taylor
Document Path: l:\council\bills\pt\1337mm03.doc
Introduced in the House on March 18, 2003
Currently residing in the House Committee on Judiciary
Summary: Consumer Protection Code
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 3/18/2003 House Introduced and read first time HJ-11 3/18/2003 House Referred to Committee on Judiciary HJ-12
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 37-5-118 SO AS TO PROVIDE FOR THE JOINDER OF CLAIMS BY CREDITORS AGAINST A DEBTOR, TO PROVIDE FOR A SEPARATE ACTION IN CONNECTION WITH A DISPUTED CLAIM, TO PROVIDE FOR THE JOINDER OF CLAIMS BY A COLLECTION AGENCY ON BEHALF OF MORE THAN ONE CREDITOR AGAINST A DEBTOR, TO DEFINE "COLLECTION AGENCY", TO PROVIDE CRITERIA FOR AN EFFECTIVE ASSIGNMENT OF A CLAIM, TO REQUIRE THE CLAIM BE PURSUED BY AN ATTORNEY LICENSED IN THIS STATE IN THE COUNTY OF THE DEBTOR'S RESIDENCE, TO PROVIDE FOR A SEPARATE ACTION FOR A DISPUTED CLAIM, AND TO RESERVE THE DEBTOR'S DEFENSES AND PROTECTIONS AT LAW.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Part 1, Chapter 5, Title 37 of the 1976 Code is amended by adding:
"Section 37-5-118. (A)(1) Two or more creditors of a debtor may join their respective claims for the purpose of commencing litigation against the debtor.
(2) If a debtor raises a good faith dispute concerning any accounts, bills, or other evidences of indebtedness that have been joined for litigation pursuant to this section, the court shall separate the disputed account, bill, or other evidence of indebtedness on its own merits in a separate action. The court shall charge the filing fee for the separate action to the losing party.
(B)(1) As used in this subsection, 'collection agency' means a third party who, for compensation, contingent or otherwise, or for other valuable consideration, offers services to collect an alleged debt asserted to be owed to another.
(2) 'Collection agency' does not mean a person whose collection activities are confined to and directly related to the operation of another business and does not include a:
(a) bank, including the trust department of a bank, trust company, savings and loan association, savings bank, credit union, or fiduciary, except those that own or operate a collection agency;
(b) real estate broker, real estate salesperson, limited real estate broker, or limited real estate salesperson;
(c) retail seller collecting its own accounts;
(d) insurance company authorized to do business in this State or a health maintenance organization authorized to operate in this State;
(e) public officer or judicial officer acting pursuant to a court order; and
(f) public utility.
(C) A collection agency with a place of business in this State may take assignment of the accounts, bills, or other evidences of indebtedness of another person in its own name as the real party of interest.
(D) A collection agency may not commence litigation for the collection of an assigned account, bill, or other evidence of indebtedness unless it has taken the assignment in accordance with all of the following requirements:
(1) The assignment was for value, voluntary, properly executed, and acknowledged by the person transferring title to the collection agency;
(2) The collection agency did not require the assignment as a condition to listing the account, bill, or other evidence of indebtedness with the collection agency for collection;
(3) The assignment was manifested by a written agreement separate from and in addition to a document intended for the purpose of listing the account, bill, or other evidence of indebtedness with the collection agency. The written agreement must state the effective date of the assignment and the consideration paid or given for the assignment and expressly must authorize the collection agency to refer the assigned account, bill, or other evidence of indebtedness to an attorney admitted to the practice of law in this State for the commencement of litigation. The written agreement also must disclose that the collection agency, for purposes of filing an action, may consolidate the assigned account, bill, or other evidence of indebtedness with those of other creditors against an individual debtor;
(E) A collection agency must commence litigation for the collection of an assigned account, bill, or other evidence of indebtedness in a court of competent jurisdiction located in the county in which the debtor resides.
(F) A collection agency may not commence litigation authorized by this section unless the agency appears by an attorney admitted to the practice of law in this State.
(G) This section does not affect a person described in subsection (B)(2).
(H) This section does not relieve a collection agency from complying with the 'Fair Debt Collection Practices Act,' 91 Stat. 874 (1977), 15 U.S.C. 1692, as amended, and does not deprive a debtor of the right to assert defenses available at law.
(I) For purposes of filing an action, a collection agency that has taken an assignment or assignments pursuant to this section may consolidate the assigned accounts, bills, or other evidences of indebtedness of one or more creditors against an individual debtor. Each separate assigned account, bill, or evidence of indebtedness must be separately identified and pled in a consolidated action authorized by this section. If a debtor raises a good faith dispute concerning any account, bill, or other evidence of indebtedness, the court shall separate each disputed account, bill, or evidence of indebtedness a separate action for its own merits. The court shall charge the filing fee for the separate action to the losing party."
SECTION 2. This act takes effect upon approval by the Governor.
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