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Arkansas Fair Debt Collection Practices Act

Arkansas Fair Debt Collection Statute

A.C.A. § 17-24-101 Definition

As used in this chapter, unless the context otherwise requires, “collection agency” means any person, partnership, corporation, association, limited liability corporation, or firm which engages in the collection of delinquent accounts, bills, or other forms of indebtedness owed or due or asserted to be owed or due to another or any person, partnership, corporation, association, limited liability corporation, or firm using a fictitious name or any name other than its own in the collection of their own accounts receivable, or any person, partnership, corporation, association, limited liability corporation, or firm which solicits claims for collection or any person, partnership, corporation, association, limited liability corporation, or firm that purchases and attempts to collect delinquent accounts or bills.

Acts of 1965, Act 145, § 2; Acts of 2009, Act 1455, § 2, eff. July 31, 2009.
Formerly A.S.A. 1947, § 71-2002.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-102 Exemptions

(a) This chapter does not apply to:

(1) Regular employees of a single creditor;
(2) Banks;
(3) Trust companies;
(4) Savings and loan associations;
(5) Abstract companies doing an escrow business;
(6) Licensed real estate brokers and agents when the claims or accounts being handled by the broker or agent are related to or in connection with the broker’s or agent’s regular real estate business;
(7) Express and telegraph companies subject to public regulation and supervision;
(8) Attorneys at law who use their own names or the names of their law firms to collect or attempt to collect claims, accounts, bills, or other forms of indebtedness owed to them individually or as a firm;
(9)
(A) Persons, firms, corporations, associations, limited liability corporations, or partnerships handling claims, accounts, or collections under an order of any court.
(B) However, child support collection agencies not operating pursuant to Title IV-D of the Social Security Act1 are not exempt from this chapter and shall be subject to licensure; and
(10) Any person, firm, corporation, association, limited liability corporation, or partnership that, for a valuable consideration, purchases accounts, claims, or demands of another that were not in default or delinquent at the time of acquisition and then in the purchaser’s own name proceeds to assert or collect the accounts, claims, or demands.

(b) Nothing in § 17-24-301, § 17-24-309, § 17-24-401, or this chapter with respect to licensure by the State Board of Collection Agencies or limitations of fees for collection services shall include or be applicable to attorneys at law licensed to practice in the State of Arkansas who are engaged in rendering legal services for clients in the collection of accounts, debts, or claims, nor shall § 17-24-301, § 17-24-309, § 17-24-401, or this chapter amend or repeal in any way the exemptions set out in subsection (a) of this section.

(c)
(1) Nothing in this chapter shall include or be applicable to the foreclosure of real property under the provisions of § 18-49-101 et seq. or § 18-50-101 et seq.
(2) Foreclosure of real property is not deemed to be debt collection as defined in the federal Fair Debt Collections Practices Act, 15 U.S.C. § 1692a(6), as in existence on January 1, 2005.

Acts of 1965, Act 145, § 9; Acts of 1969, Act 214, § 2; Acts of 1993, Act 1245, § 1; Acts of 1997, Act 246, § 1; Acts of 2005, Act 1882, § 1, eff. Aug. 12, 2005; Acts of 2009, Act 1455, § 3, eff. July 31, 2009.
Formerly A.S.A. 1947, §§ 71-2009, 71-2011.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-103 Penalties

(a)
(1) A collection agency that engages in the business activities of a collection agency without a license issued under this chapter may be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).
(2) Each day of a violation of this chapter is a separate offense.
(3)
(A) If a collection agency participates in collection activities without a license, the collection agency may pay a civil penalty to the State Board of Collection Agencies of ten thousand dollars ($10,000) in order to be considered retroactively licensed under this chapter by the board.

(B) As used in this chapter, “retroactively licensed” means the date that the collection agency first became subject to licensure under this chapter.
(b)
(1) The board may impose monetary fines as civil penalties to be paid for failure to comply with this chapter or the rules promulgated by the board under this chapter.
(2) Before imposing a monetary fine under subdivision (b)(1) of this section, the board shall provide notice and opportunity to be heard according to hearing procedures in effect for the revocation, suspension, or refusal of licensure.
(3) The remedies in the form of civil penalties provided in this section for failing to obtain a license issued under this chapter shall be the only consequence of and remedy for the failure of a collection agency to obtain a license when required under this chapter.

(c) The board has exclusive jurisdiction over the rights and remedies or a violation of the rules under this chapter.

Acts of 1965, Act 145, § 10; Acts of 1993, Act 1245, § 2; Acts of 1997, Act 246, § 2; Acts of 2009, Act 1455, § 4, eff. July 31, 2009; Acts of 2015, Act 1249, § 1, eff. July 22, 2015.
Formerly A.S.A. 1947, § 71-2010.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-104 Sanctions

(a) A collection agency that fails to remit to its client funds collected for the client within the calendar month following the month of collection, shall not be entitled to a collection fee and shall remit the total funds collected to the client.

(b) If a collection agency fails to remit funds collected to its client within the calendar month following the month of collection and does not remit the total funds collected for the client to the client within sixty-one (61) days of the date of collection, the State Board of Collection Agencies may:
(1) Suspend or revoke the license of the collection agency; and
(2) Impose a civil penalty under § 17-24-103.

Acts of 1981, Act 366, § 1; Acts of 2009, Act 1455, § 5, eff. July 31, 2009.
Formerly A.S.A. 1947, § 71-2016.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-105 Injunctions

When any person, partnership, corporation, or association engages in the business activities of a collection agency without a valid license issued pursuant to this chapter or has had the license revoked, suspended, or refused, in accordance with the provisions of this subchapter, the State Board of Collection Agenices shall have the right to petition the circuit court in the jurisdiction in which the collection activity has occurred and, upon affidavit, secure a writ of injunction, without bond, restraining and prohibiting the person, partnership, corporation, or association from operating the collection agency.

Acts of 1993, Act 1245, § 3.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-201 Creation–Members

(a)
(1) There is created a State Board of Collection Agencies composed of five (5) members to be appointed by the Governor.
(2) The members shall serve three-year terms without compensation except they may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

(b) (1)
(A) One (1) member shall be appointed by the Governor after consulting the Associated Credit Bureaus of Arkansas, Inc., subject to confirmation by the Senate, and another shall be appointed by the Governor after consulting with the Arkansas members of the American Collectors Association and subject to confirmation by the Senate.
(B) The persons appointed under subdivision (b)(1)(A) of this section shall:
(i) Be actively engaged as the owners or managers of a collection agency or someone employed by collection agencies in an executive capacity; and
(ii) Have been actively engaged in connection with the operation of a collection agency for five (5) years next preceding their appointment.
(2) One (1) member, who shall not be a member of either such association, shall be selected from the public at large.
(3)(A) One (1) member shall represent the elderly and shall be sixty (60) years of age or older.
(B) This member shall not be actively engaged in or retired from the operation of a collection agency.
(C) He or she shall be selected from the state at large subject to confirmation by the Senate and shall be a full voting member but shall not participate in the grading of examinations.
(4)(A) One (1) member shall be selected to represent the check-cashing industry.
(B) He or she shall be an Arkansas resident who is actively engaged as the owner or manager of a check-cashing operation licensed to do business in the State of Arkansas.

Acts of 1965, Act 145, § 3; Acts of 1983, Act 131, §§ 1 to 3, 5; Acts of 1983, Act 135, §§ 1 to 3, 5; Acts of 1997, Act 250, § 131, eff. Feb. 24, 1997; Acts of 1997, Act 1018, § 3, eff. April 2, 1997; Acts of 2001, Act 1766, § 1, eff. Aug. 13, 2001; Acts of 2015, Act 1100, § 22, eff. July 22, 2015.
Formerly A.S.A. 1947, §§ 6-623 to 6-626, 71-2003.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-202 Organization–Meetings–Quorum

(a)
(1) The State Board of Collection Agencies shall meet and shall select from its membership a chair, vice chair, and secretary.
(2) No one (1) member of the board shall hold more than one (1) of the offices.

(b) Meetings of the board shall be held upon the written call of the chairman of the board or upon the written request of two (2) members of the board.

(c) A majority of the board shall constitute a quorum.

Acts of 1965, Act 145, § 3.
Formerly A.S.A. 1947, § 71-2003.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-203 Rules and regulations–Promulgation–Interpretation–Application

(a) The State Board of Collection Agencies shall have the authority to promulgate rules and regulations to implement the provisions of this chapter which are not inconsistent herewith.

(b) The board shall use, to the greatest extent possible, the interpretation and construction of the Fair Debt Collection Practices Act and any other applicable portions of the debt collection laws of the United States in interpreting and applying this chapter and the rules and regulations promulgated by the board.

Acts of 1965, Act 145, § 4; Acts of 1995, Act 288, § 1.
Formerly A.S.A. 1947, § 71-2004.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-301 License required

Unless licensed by the State Board of Collection Agencies under this subchapter it is unlawful to:

(1) Engage in the collection of delinquent accounts, bills, or other forms of indebtedness;
(2) Use a fictitious name or any name other than their own in the collection of their own accounts receivable;
(3) Solicit claims for collection; or
(4) Purchase and attempt to collect delinquent accounts or bills.

Acts of 1965, Act 145, § 1; Acts of 1969, Act 214, § 1; Acts of 2009, Act 1455, § 6, eff. July 31, 2009.
Formerly A.S.A. 1947, § 71-2001.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-302 Licensing qualifications

(a) The State Board of Collection Agencies shall have the authority to issue a license to an applicant for a license to do business as a collection agency, provided that the applicant meets the following qualifications:
(1) The applicant is at least twenty-one (21) years of age;
(2) If a partnership, the names of the partners, their ages, sex, and their business address are provided, and the members of the partnership are at least twenty-one (21) years of age; and
(3) The proposed managers of a corporation or the owners of not less than fifty percent (50%) of the stock of the corporation are at least twenty-one (21) years of age.

(b) No sheriff, deputy sheriff, constable, deputy constable, state police officer, or other law enforcement officer shall be licensed in any manner to engage in the business of operating a collection agency or acting as a collector for a collection agency.

Acts of 1965, Act 145, § 5; Acts of 1993, Act 1219, § 5; Acts of 1995, Act 1296, § 64.
Formerly A.S.A. 1947, § 71-2005.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-303 Application–Issuance–Transferability

(a) The State Board of Collection Agencies shall have the authority to require an applicant for a license to submit an application in writing containing such information as it shall deem necessary and pertinent and may require the character and business references which it deems appropriate.

(b) Licenses issued by the board are not transferable.

Acts of 1965, Act 145, § 5; Acts of 2009, Act 1455, § 7, eff. July 31, 2009.
Formerly A.S.A. 1947, § 71-2005.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-304 Expiration date–Renewal

(a) All collection agency licenses and collection agency employee licenses shall expire annually on June 30.

(b) All licensees under this chapter shall apply for the renewal of their licenses, on forms to be prescribed by the State Board of Collection Agencies, on or before July 1 of the fiscal year for which the licenses are sought.

(c) The board shall have the authority to require that the licensee’s manager certify in writing that the requirement in § 17-24-310 has been met as a condition for renewal of the agency license.

Acts of 1965, Act 145, § 7; Acts of 1979, Act 86, § 1; Acts of 1985, Act 829, § 2; Acts of 1985, Act 830, § 1.
Formerly A.S.A. 1947, §§ 71-2007, 71-2018.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-305 Fees–Disposition

(a) The State Board of Collection Agencies may charge an annual license fee not to exceed one hundred twenty-five dollars ($125) for licensing each collection agency and an annual fee of twenty dollars ($20.00) effective September 1, 2013, for registering each employee of the licensed collection agency who as an employee solicits, collects, or attempts to collect any delinquent account or accounts by telephone, mail, personal contact, or otherwise.

(b)
(1) All income from fees imposed under this section shall be distributed in the form of one (1) annual payment that is a percentage of the total funds available up to the maximum authorized under this subsection.
(2) However, if less than one hundred percent (100%) of the total allocation is available for distribution, all allocations listed in subdivisions (b)(3)(A)-(F) of this section shall be funded at a prorated percentage consistent with the available funds, not to exceed the maximum amounts listed in subdivisions (b)(3)(A)-(F) of this section.
(3) Beginning July 1, 2013, and each fiscal year thereafter, the State Board of Collection Agencies shall remit to:
(A) The Treasurer of State for the Division of Medical Services of the Department of Human Services, an amount not to exceed one hundred fifteen thousand dollars ($115,000) for deposit into a paying account as determined by the Chief Fiscal Officer of the State to be used in accordance with § 20-10-705;
(B) The University of Arkansas for Medical Sciences, an amount not to exceed six hundred thousand dollars ($600,000) for deposit into a financial institution in accordance with the policies of the University of Arkansas for Medical Sciences to be expended for the College of Pharmacy and the College of Nursing in accordance with § 6-64-417;
(C) Arkansas State University — Mountain Home, an amount not to exceed two hundred fifty thousand dollars ($250,000) for deposit into the Arkansas State University — Mountain Home Fund to be expended exclusively for the Arkansas State University — Mountain Home Practical Nursing Program;
(D) The University of Central Arkansas, an amount not to exceed one hundred thousand dollars ($100,000) for deposit into the University of Central Arkansas Fund to be expended exclusively for the University of Central Arkansas Department of Nursing;
(E) Southern Arkansas University, an amount not to exceed one hundred thousand dollars ($100,000) for deposit into the Southern Arkansas University Fund to be expended exclusively for personal services and operating expenses of the Southern Arkansas University system; and
(F) Henderson State University, an amount not to exceed one hundred thousand dollars ($100,000) for deposit into the Henderson State University Fund.
(4) Funds remaining after the distributions listed in subdivisions (b)(3)(A)-(F) of this section shall be deposited into the State Board of Collection Agencies account in a bank authorized to do business in this state.

(c) [Repealed by Acts of 2015, Act 1156, § 4, eff. July 22, 2015.]

Acts of 1965, Act 145, § 7; Acts of 1979, Act 86, § 1; Acts of 1985, Act 830, § 1; Acts of 1999, Act 1500, § 1, eff. July 30, 1999; Acts of 2005, Act 2268, § 7, eff. July 1, 2005; Acts of 2007, Act 1217, § 7, eff. July 1, 2007; Acts of 2009, Act 1413, § 4, eff. July 1, 2009; Acts of 2009, Act 1455, § 8, eff. July 31, 2009; Acts of 2010, Act 281, § 4, eff. July 1, 2010; Acts of 2011, Act 764, § 5, eff. July 1, 2011; Acts of 2013, Act 1023, § 4, eff. July 1, 2013; Acts of 2015, Act 1156, §§ 3, 4, eff. July 22, 2015.
Formerly A.S.A. 1947, § 71-2007.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-306 Bond

(a) The State Board of Collection Agencies shall require each licensee to secure a surety bond in an amount not less than ten thousand dollars ($10,000) nor more than fifty thousand dollars ($50,000) for each location, with the security on the bond to be approved by the board.

(b) The aggregate liability of the surety for all breaches of the conditions of the bond shall, in no event, exceed the amount of the bond. The surety shall have a right to cancel such bond upon giving thirty (30) days’ notice to the board and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation.

(c) The bond shall be made payable to the board.

(d) The board may promulgate rules to:
(1) Disburse bond funds to claimants;
(2) If the bond proceeds are insufficient to satisfy all legitimate claims, distribute the funds pro rata among the claimants; or
(3) In the discretion of the board, require the sureties to deal directly with the claimants.

Acts of 1965, Act 145, § 6; Acts of 1979, Act 179, § 1; Acts of 1989, Act 792, § 1; Acts of 1991, Act 126, § 4; Acts of 1999, Act 1500, § 2, eff. July 30, 1999; Acts of 2009, Act 1455, § 9, eff. July 31, 2009; Acts of 2013, Act 1023, § 5, eff. July 1, 2013.
Formerly A.S.A. 1947, § 71-2006.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-307 Revocation–Suspension–Refusal–Grounds

The State Board of Collection Agencies shall have the authority to revoke, suspend, or refuse to issue a license for violation of this chapter, or upon receipt of evidence as follows:

(1) False or misrepresented statements on application;
(2) Sale or transfer of ownership of agency;
(3) Conviction of any crime involving moral turpitude;
(4) Aiding or abetting any unlicensed person to engage in business as a collection agency;
(5) Publishing or posting, or causing to be published or posted, any list of debtors, commonly known as “deadbeat” lists;
(6) Collecting or attempting to collect by the use of any methods contrary to the postal laws and regulations of the United States;
(7) Having in his or her possession or making use of any badge, using a uniform of any law enforcement agency or any simulation thereof, or making any statements which might be construed as indicating an official connection with any federal, state, county, or city law enforcement agency, or any other governmental agency, while engaged in collection agency business;
(8) Distributing any printed matter which is made to be similar or to resemble government forms or documents, or legal forms used in civil or criminal proceedings;
(9) Advertising for sale or threatening to advertise for sale any claim as a means of endeavoring to enforce payment thereof, or agreeing to do so for the purpose of soliciting claims, except where the licensee has acquired claims as an assignee for the benefit of creditors or where the licensee is acting under the order of a court of competent jurisdiction;
(10) Engaging in any unethical practices or resorting to any illegal means or methods of collection;
(11) Using profanity, obscenity, or vulgarity while engaged in the collection of claims;
(12) Addressing a letter to or telephoning a debtor at his or her place of employment unless a good-faith attempt has been made to contact the debtor at his or her usual place of abode by letter and the mail has not been returned and no answer has been received; or
(13) Using violence or threats of physical violence while engaged in the collection of claims.

Acts of 1965, Act 145, § 8; Acts of 2009, Act 1455, § 10, eff. July 31, 2009.
Formerly A.S.A. 1947, § 71-2008.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-308. Revocation–Suspension–Refusal–Procedure

(a)
(1) Upon the receipt of evidence of any violation, the State Board of Collection Agencies shall order a hearing to be held.
(2) All interested parties shall be apprised, at least twenty (20) days prior to the hearing, as to the time and place of the hearing.
(3) The board shall have authority to summon and examine witnesses, gather information by affidavit and deposition, and subpoena those business records pertinent to the charges, as to any alleged violator.
(4) Revocation, suspension, or refusal to issue shall be by order of the board.

(b) Any party to the proceeding shall have the right to appeal from the order of the board to the Pulaski County Circuit Court which shall try the case. The appeal may be taken by filing a petition with the clerk of the court within thirty (30) days of the date of the decision of the board. The decision of the circuit court shall be appealable to the Supreme Court in the same manner as civil cases are appealed.

(c) In the event that the holder of a license shall fail to secure a renewal thereof, or in the event of the suspension or revocation of the license by the board, and in the event that an appeal is taken to the courts as provided in this section, the holder of the license shall be allowed, during the period of the appeal, to operate the business of a collection agency as though no such action had been taken by the board.

Acts of 1965, Act 145, § 4; Acts of 1999, Act 1500, § 3, eff. July 30, 1999.
Formerly A.S.A. 1947, § 71-2004.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-309 Collection charges–Limits

(a) No collection agency mentioned in § 17-24-103 shall charge as a collection charge or fee an amount in excess of fifty percent (50%) of the total amount actually collected on all accounts for any one (1) client, nor more than fifty percent (50%) of the total amount actually collected on any one (1) account, nor shall a minimum charge in excess of one dollar ($1.00) be made on any partially or totally collected account.

(b) All contracts providing for a greater collection charge or fee or a greater minimum charge than provided in this section entered into between any creditor in this state and any collection agency covered by this chapter shall be void. The creditor shall have, in addition to all other remedies now or hereafter provided by law, a cause of action to recover all amounts collected by the collection agency on the creditor’s account or accounts.

Acts of 1969, Act 214, § 2; Acts of 2009, Act 1455, § 11, eff. July 31, 2009.
Formerly A.S.A. 1947, § 71-2011.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-310 Collection agency notice requirement

(a) Each collection agency required to be licensed under this chapter shall, annually, within the month of April, give written notice to each client for whom it is collecting or attempting to collect that collection agencies licensed by the State of Arkansas are required by law to remit collected funds to the clients within the calendar month following the month of collection.

(b) No such notice is required to a forwarder who is also a licensee of the State of Arkansas.

Acts of 1985, Act 829, § 1.
Formerly A.S.A. 1947, § 71-2017.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-401 “Long arm” jurisdiction

Any nonresident person, partnership, association, or any foreign corporation not authorized to do business in this state whose sole business contact with this state is the soliciting of accounts in this state by mail, telephone, telegraph, or by other like means originating outside this state, or the taking or accepting for collection of any account or accounts in this state by such means, shall by such acts:

(1) Subject himself or herself to the jurisdiction of the proper courts of this state under the procedure provided in §§ 17-24-403 and 17-24-404 on any cause of action arising out of or connected with the collection of any such account or accounts;
(2) Be deemed to have consented to comply with the maximum collection charges or fees provided in § 17-24-309; and
(3) Be deemed to have consented to and designated the Secretary of State to be the true and lawful attorney of the person, partnership, association, or corporation upon whom may be served all legal process in any action, suit, or proceeding in any court by any resident of this state arising out of or connected with the collection of any such account or accounts. Such acts shall be signification of its agreement that any legal process in any court action or suit so served shall be of the same legal force and validity as personal service of process in this state upon the person, partnership, association, or corporation. Service of process shall be made upon the Secretary of State pursuant to § 17-24-403.

Acts of 1965, Act 145, § 1; Acts of 1969, Act 214, §§ 1, 3; Acts of 1997, Act 1213, § 3; Acts of 1999, Act 1500, § 4, eff. July 30, 1999.
Formerly A.S.A. 1947, §§ 71-2001, 71-2012.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-402 Permitted motions

Nothing contained in § 17-24-404 shall be construed to prevent a nonresident person, partnership, association, or any foreign corporation upon whom service of process is had as provided in § 17-24-403 from filing a motion to quash a writ or to set aside service made as provided in § 17-24-403 on the grounds that the person, partnership, association, or foreign corporation has not done or committed any of the acts in this state which give rise to such service of process.

Acts of 1969, Act 214, § 6.
Formerly A.S.A. 1947, § 71-2015.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-403 Service of process

(a) Service of process in the action, suit, or proceeding in any court as authorized by § 17-24-401(3) shall be made by leaving three (3) copies in the office of the Secretary of State along with a notification that service is being effected pursuant to § 17-24-401, and by paying the Secretary of State the sum of twenty-five dollars ($25.00). A certificate by the Secretary of State showing service and attached to the copy of the process presented to him or her for that purpose shall be sufficient evidence of the service. Service upon the Secretary of State as attorney shall be service upon the principal.

(b) The Secretary of State shall immediately mail one (1) copy of the court process to the defendant in the court proceeding by first class mail at the defendant’s last known principal place of business, and shall keep a record of all process which shall show the day and hour of receipt. The Secretary of State shall file an affidavit showing compliance with this section in the court proceedings on or before the date the defendant is required to appear or respond, unless an extension of time is allowed by the court.

(c) No plaintiff or complainant shall be entitled to a judgment or determination by default in any court proceeding in which process is served under this section until the expiration of forty-five (45) days from the date of filing of the affidavit of compliance.
(d) Nothing contained in this section shall limit or abridge the right to serve any process, notice, order, pleading, or demand upon any person, partnership, association, or corporation in any other manner now or hereafter permitted by law.

Acts of 1969, Act 214, § 3; Acts of 1999, Act 1500, § 5, eff. July 30, 1999.
Formerly A.S.A. 1947, § 71-2012.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

A.C.A. § 17-24-404 Filing defense pleading–Requirement

(a) Before any nonresident person, partnership, association, or any foreign corporation upon whom service of process is had as provided by § 17-24-403 files or causes to be filed any pleading in any court action, suit, or proceeding instituted against a person, partnership, association, or corporation, he or she or it shall deposit with the clerk of the court in which the action, suit, or proceeding is pending cash or securities or bond with good and sufficient sureties to be approved by the court, in an amount to be fixed by the court sufficient to secure the payment of any final judgment which may be rendered in the court proceeding.

(b) The court may in its discretion make an order dispensing with the deposit or bond when the person, partnership, association, or corporation makes a showing satisfactory to the court that it maintains in the State of Arkansas funds or securities, in trust or otherwise, sufficient and available to satisfy any final judgment which may be entered in the court action, suit, or proceeding.

(c) In any action, suit, or proceeding in which service is made as provided in § 17-24-403, the court, in its discretion, may order any postponement as may be necessary to afford the defendant reasonable opportunity to comply with subsection (a) of this section and to defend any court action.

Acts of 1969, Act 214, §§ 4, 5.
Formerly A.S.A. 1947, §§ 71-2013, 71-2014.
The constitution and statutes are current through laws passed in the 2018 Fiscal Session and the Second Extraordinary Session of the 91st Arkansas General Assembly that are effective July 1, 2018, or earlier, and include changes made by the Arkansas Code Revision Commission received through July 1, 2018.

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