Effective May 3, 2023, Utah House Bill 20 (Collection Agency Amendments) will repeal a majority of Utah's collection agency statutes located in Title 12 of the Utah Code. Signed by Utah Governor Spencer Cox on March 13, 2023, the bill will repeal long-standing requirements for collection agencies to file a collection agency application, pay the registration fees, and obtain a surety bond with the Utah Department of Commerce, Division of Corporations and Commercial Code (the Division) in order to receive approval for conducting business in Utah.

On separate occasions during legislative sessions, Bill Sponsor Rep. Cory Maloy reasoned, "[the bill] takes out some of the redundancy in regulations that are not used or not necessary," and Floor Sponsor Sen. Curtis Bramble explained that the statutes to be repealed are "extraneous." The only collection agency statutes that will remain from Title 12 of the Utah Code are those regarding the limitations and terms of collection fees and convenience fees imposed by creditors or third-party debt collection agencies. See Utah Code Ann. § 12-1-11. To date, the Division has not issued guidance for current Utah collection agency registrants, including those in the process of renewals, or indicated any changes for collection agency filing requirements beginning May 3.

We will continue to monitor updates from the Utah Division of Corporations.