Section R20-4-1504. Records

A.      A licensee may use a computer recordkeeping system if the licensee gives the Superintendent advanced written notice that it intends to do so. The Department shall not require a licensee to keep a written copy of its books, accounts, and records if the licensee can generate all information required by this Section in a timely manner for examination or other purposes. A licensee may modify a computer recordkeeping system’s hard- ware or software components. When requested, or in response to a written notice of an examination, a licensee shall report to the Superintendent any modification that changes a computer system back to a paper-based recordkeeping system;

B.       All licensees shall keep and maintain books, accounts, and records adequate to provide a clear and readily understandable record of all business conducted by the collection agency, including:

1.        Records or books of account listing all clients’ accounts in numerical order, or in alphabetical order according to the clients’ names. If a collection agency keeps books of accounting in numerical order, the collection agency shall alphabetically cross-index each client name with the cor- responding account’s number. Each account shall reflect its true condition at each calendar month’s end, and shall include:

a.         The client’s name and address;

b.        Each debtor’s name worked for collection in that month;

c.         The amount, description, and date of each debit and each credit to the account; and

d.        The balance due to, or owing from, the client.

2.        A record and history of each debt for collection that clearly shows:

a.         The debtor’s name;

b.        The debt’s principal amount;

c.         The interest charged or collected;

d.        The amount, and a description of any other charges;

e.         The amount, and date, of each payment received or collected; and

f.         The current balance due on the debt.

3.        An original of each written contract, between the licensee and a client, including any contract amendments.

4.        A trust general ledger reflecting all deposits to and pay- ments from a trust account. A licensee shall post transac- tions to its trust general ledger at least every five business days. A licensee shall bring its trust general ledger cur- rent within 24 hours when requested by the Superinten- dent.

5.        The licensee’s trust account reconciliation, prepared at least once a month.

6.        Books, records, and files maintained so that the Superin- tendent can easily conduct an unannounced spot check, as well as the examinations and investigations required by

A.R.S. §§ 6-122 and 6-124.

7.        A copy of all pleadings in pending litigation that names the collection agency as a defendant.

8.        A record of fictitious names used by the agency’s debt collectors as required by R20-4-1520.

C.      A person issuing a receipt for a collection agency shall sign the receipt using that person’s true name. Each receipt shall also show the collection agency’s name.

D.      A licensee shall maintain all records required under this Sec- tion and shall make them available for examination, investiga- tion, or audit in Arizona within three working days after the Superintendent demands the records.

E.       A licensee shall retain the records required by this Section for the following periods:

1.        A licensee shall retain all records described in subsec- tions (B)(1), (B)(3), (B)(4), (B)(5), (B)(6), (B)(7), and (B)(8) for at least six years following their creation.

2.        A licensee shall retain all records described in subsection (B)(2) for at least three years from an account’s assign- ment to the licensee. If a licensee collects any money on an account, the licensee shall retain the records described in subsection (B)(2) for at least three years from the last collection date.

Historical Note

Adopted as an emergency effective September 6, 1978, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 78-5). Adopted effective December 6, 1978

(Supp. 78-6). Amended effective December 18, 1979 (Supp. 79-6). R20-4-1504 recodified from R4-4-1504 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R.

4742, effective November 13, 2000 (Supp. 00-4).