On February 27, 2023, Wyoming Governor Mark Gordon signed into law House Bill 284 by Representative Tom Walters that requires debt buyers be licensed as collection agencies in Wyoming as of July 1, 2023. The term “debt buyer” is defined as “any person that is regularly engaged in the business of purchasing charged-off consumer debt for collection purposes, whether the person collects the debt, hires a third party for collection of the debt or hires an attorney for collection litigation.”
This bill was introduced at the request of RMAI in January to address an emerging debate as to whether debt buyers should have been licensed under the existing definition of “collection agency” in Wyoming law, despite the state licensing board issuing exemptions to debt buyers for over 20 years.
This new law makes clear that debt buyers did not have to be licensed in Wyoming prior to July 1, 2023. The new law also protects the validity of any civil action or arbitration filed or commenced by a debt buyer, or any judgment entered for a debt buyer before July 1, 2023.
RMAI would strongly recommend that its members share this member alert with those in their organization who are responsible for legal, compliance, and licensing matters to confirm your Wyoming licensure status and ensure that any required license is obtained before July 1, 2023.
This Member Alert is intended for members of the Receivables Management Association International, is for informational purposes only, and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.