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In a move to protect borrowers from predatory lending practices, Idaho lawmakers have passed new legislation that will provide greater transparency and accountability in the state's debt collection industry. The Idaho Department of Finance announced on Monday, October 10th, that the new laws will go into effect on January 1, 2026.One of the key provisions of the new legislation is the requirement for debt collectors to provide borrowers with a clear and detailed explanation of the debt they owe, including the original amount borrowed, any interest or fees accrued, and the name of the original creditor. Additionally, debt collectors will be prohibited from engaging in harassing or abusive practices, such as repeated phone calls or threats of legal action.The new laws also address the issue of so-called "zombie debt," which refers to debts that are past the statute of limitations for collection but are still pursued by creditors. Under the new legislation, debt collectors will be required to provide proof that a debt is valid and within the statute of limitations before attempting to collect on it.Furthermore, the Idaho Department of Finance will be implementing a licensing system for debt collectors, requiring them to pass a background check and adhere to a strict code of conduct. Violations of the new laws could result in fines or revocation of a collector's license.In response to the new legislation, consumer advocates have praised the move as a significant step towards protecting borrowers from unfair debt collection practices. "These new laws are a victory for consumers in Idaho," said Sarah Johnson, a spokesperson for the Idaho Consumer Protection League. "They will help to ensure that borrowers are treated fairly and ethically by debt collectors."While the new laws are a positive development for borrowers in Idaho, some critics have expressed concerns that they may make it more difficult for creditors to collect on legitimate debts. However, proponents of the legislation argue that the measures are necessary to prevent abuses in the debt collection industry and to provide greater protection for consumers.Overall, the new legislation represents a significant milestone in the ongoing efforts to reform the debt collection industry in Idaho and to uphold the rights of borrowers. With these new laws set to take effect at the beginning of the new year, borrowers can expect greater transparency and accountability from debt collectors moving forward.