43.03.010 Debt Collections

(a) The Tribe hereby directs and proclaims that current and past-due accounts be collected in a manner that is fair, honest, and convenient for Covered Loan borrowers. Licensees under this Code shall include fair and honest debt collection practices as part of its Compliance Management System and shall:

(1) implement a debt collection compliance policy consistent with this Code;

(2) review the performance of employees who interact with borrowers;

(3) periodically monitor collection activities for both incoming and outgoing Communications;

(4) provide regular debt collection compliance training to all employees and contractors involved with debt collection;

(5) evaluate compensation practices to ensure they do not incentivize behavior that would result in a heightened risk to borrowers;

(6) ensure that any Person involved in debt collection on behalf of the Lending Operation complies with this Code, if applicable.

(b) Licensees and Regulated Entities, in connection with the collection of any debt or to obtain information about a borrower in connection with the collection of any account, shall not:

(1) represent without a basis in fact that the debt collector is, or is vouched for, bonded by, employed by, contracted by, or affiliated with: a government; an attorney or law firm; any government's court, official, or agency; a credit reporting agency; an individual; or a business, company, or organization that does not, in fact, have the relationship with the Licensee that is represented;

(2) represent without a basis in fact that the nonpayment of any debt will result in an action: (1) that is improbable in light of the debt's status, amount, or character; (2) that cannot be lawfully taken; (3) where legal conditions or prerequisites to that action have not occurred; or (4) that is a violation of this Code;

(3) Communicate or threaten to Communicate to any Person: (1) credit information which is known to be false, that does not accurately represent the debt obligation or actions taken on the account, including the failure to report that a disputed debt is disputed; or (2) that the consumer committed any crime or other conduct that might disgrace the consumer.

(1) obfuscating or otherwise preventing any Person from understanding the legal enforceability of a Covered Loan;

(2) collecting or attempting to collect any amount that is not authorized by the agreement creating the debt or permitted by this Code;

(3) chicanery involving postdated checks, postdated monetary instruments, electronic payments, automated clearinghouse transactions, or other payment methods, including:

(A) taking any action to debit a deposit account prior to the date authorized by agreement with the consumer;

(B) taking any action to debit a deposit account more than one time in any 24-hour period;

(C) taking any action to debit a deposit account when the Licensee knows or has reason to know that the debit will not be honored or will cause the deposit account owner to incur non-sufficient fund fees;

(D) taking any action to debit a deposit account for an amount greater than an amount authorized by the agreement creating the debt or permitted by this Code; or

(E) taking any action to debit a deposit account when such debit was not authorized by an agreement with a holder of that deposit account;

(4) Communicating with a consumer in a method that the Licensee knows will cause the consumer to incur fees, provided that it is not a violation of this subsection to communicate with the consumer using the method, number, or address that the consumer provided to the Licensee or using a payment method authorized by the Licensee;

(5) taking or threatening to take any action to effect dispossession or disablement of property if: (1) there is no present right to possession of the property; (2) the legal conditions or other prerequisites to taking such action have not occurred; or (3) the property is exempt by law from dispossession or disablement;

(6) Communicating with a consumer regarding a debt using a method that the Licensee knows or has reason to know will be observed by a member of the General Public;

(7) Communicating with a consumer outside the hours of 8:00 a.m. through 9:00 p.m. in that consumer's respective time zone as identified by the consumer's address of record; or

(8) failing to credit a debt payment consistent with the terms of the agreement creating the debt.

(d) Consumer requests regarding the time and method of Communications shall be honored, consistent with the following:

(1) verbal requests to limit Communications to certain days or hours shall be valid for no less than 30 days;

(2) verbal requests to cease Communications shall be valid for no less than 30 days;

(3) written requests to limit Communications to certain days or hours or to cease Communications shall be valid as to the Person in receipt of the written request indefinitely or for the period specified by the consumer;

(4) Licensees shall provide clearly and conspicuously to consumers the address for receipt of written requests to cease Communications; and

(5) upon sale or transfer of any past due account, the Licensee will identify Covered Loans for which a consumer has requested that Communications cease.

(e) It is not a violation of this section or this Code for Licensees to do the following:

(1) accept payments for a Covered Loan in any form or through any method offered by or agreed to by the consumer, including mobile payment services, cyber currency, or another credit instrument;

(2) Communicate with the consumer by voice or written message at a number or address provided by the consumer, unless the Licensee knows that the number or address is incorrect;

(3) Communicate to an authorized representative of a decedent debtor the existence of the debt, that the decedent's estate is responsible for the debt, and to truthfully answer the representative's questions about the account or debt;

(4) file a proof of claim in a bankruptcy court for an obligation that arose directly or indirectly from a Covered Loan, provided that the claim is substantiated; or

(5) file a claim for payment or for enforcement of an arbitration award in any state court for an obligation that arose directly or indirectly from a Covered Loan, provided that the claim is substantiated.

(f) Safe Harbor for Remediated Violations

In the event that a Licensee or Regulated Entity violates or allegedly violates any provision of this section and reverses, corrects, and remediates fully the effects of such violation, no Person may initiate an administrative or civil proceeding for penalties or damages against the Licensee or Regulated entity provided that:

(1) the Licensee or Regulated Entity fully remediates any harm within a reasonable time after discovering the harm, including reimbursing borrowers for Non-sufficient fund fees proximately caused by the violation;

(2) the Licensee or Regulated Entity performs an investigation into the cause of the violation or alleged violation and takes reasonable measures to prevent such violation from reoccurring;

(3) the act or omission was not due to willful, knowing, reckless, or grossly negligent conduct; and

(4) the Licensee or Regulated Entity informs the Commission within 48 hours of the violation or alleged violation's discovery, informs the Commission of the remediating measures taken under this section, as applicable, and cooperates in any special examination arising from the violation or alleged violation.