(a) When the director has reasonable cause to believe that a registrant created deficiencies or other problems in accounts which hold funds or other forms of payment collected on behalf of a complainant, the director may order an audit of the account or accounts, or an unannounced verification of the account’s cash balance. The audit or verification shall be conducted by a certified public accountant, public accountant, or other designee of the director.
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Terms Used In Hawaii Revised Statutes 443B-4.62

  • Client: means a person who offered or extended credit which created a debt, or to whom a debt is owed, and who engages the professional services of a collection agency. See Hawaii Revised Statutes 443B-1
  • Collection agency: includes :

    (1) Any person using any name other than the person's own in collecting the person's own claims with the intention of conveying, or which tends to convey the impression that a third party has been employed;

    (2) Any person who, in the conduct of the person's business for a fee, regularly repossesses any merchandise or chattels for another; and

    (3) Any person who regularly accepts the assignment of claims or money due on accounts or other forms of indebtedness and brings suits upon the assigned claims or money due on accounts or other forms of indebtedness in the person's own name; provided that any suits shall be initiated and prosecuted by an attorney who shall have been appointed by the assignee. See Hawaii Revised Statutes 443B-1

  • Director: means the director of commerce and consumer affairs. See Hawaii Revised Statutes 443B-1
(b) If an audit or unannounced verification of an account ordered by the director reveals deficiencies or other problems in accounts which hold client funds and other forms of payment, the cost of the audit or the verification shall be paid by the collection agency. If an audit or unannounced verification of an account ordered by the director does not reveal deficiencies and problems in accounts, the cost of the audit or unannounced verification shall be paid by the complainant. Failure of a collection agency to pay for an audit or unannounced verification within thirty days of receipt of the billing statement shall result in suspension of the agency’s registration until payment is made.

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