Opinion ID: 2634605
Heading Depth: 1
Heading Rank: 1

Heading: factual and proceduralbackground

Text: PurCo is a Utah corporation in the business of acquiring, enforcing, and settling rental car damage claims. PurCo has never obtained or applied for a permit from the Department to operate as a collection agency in Idaho under the Idaho Collection Agency Act. PurCo and CENTRAC, Inc., d/b/a Thrifty Car Rental (Thrifty) entered into a standard contract (PurCo Agreement), wherein the rental company assigns all claims, rights and causes of action for damaged vehicles to PurCo in consideration for cash payments, training, and consulting services. In January 2001, PurCo received an assignment of a claim from a Thrifty location in Washington State, against an Idaho resident, for damage to a rental vehicle that had occurred in Washington. For several months, PurCo attempted to settle the damage claim. PurCo wrote its initial letter to the resident enclosing information supporting this claim. PurCo then sent a demand letter on June 25, 2001, quoting a federal requirement: We are attempting to collect a debt ... PurCo reported the unpaid claim marked as disputed, to a credit bureau. Thereafter, the Idaho Attorney General's office became involved. On or about February 26, 2002, the Director received notice that PurCo may be acting as a collection agency in Idaho without the proper permits. After an investigation, counsel for the Department notified PurCo to immediately cease engaging in collection activity in Idaho until it had qualified under the Act. On July 1, 2002, the Director issued a cease and desist order, requiring PurCo to cease further collection efforts in Idaho and any other conduct requiring a permit under the Act. PurCo moved for reconsideration of the order, which was denied. PurCo moved for a second reconsideration after providing additional information not included in any of the previous communications. The Department denied the motion on August 21, 2002. PurCo timely filed a petition for review of the Department's decision with the district court. On April 11, 2003, the district court held that PurCo was not a collection agency subject to the requirements of the Idaho Collection Agency Act, setting aside the Director's three orders, including the cease and desist order.