Chap. 103.——An ACT to prevent collection agencies from purchasing debts
or other causes of action for the purpose of collecting them by legal
proceedings. [H B 235]

Approved March 12, 1938

1. Be it enacted by the General Assembly of Virginia, That it
shall be unlawful for a collection agency to purchase any debt or
other cause of ‘action for the purpose of collecting it by legal pro-
ceedings. A collection agency is defined to be a person, firm or cor-
poration, that is not authorized or licensed to practice law, and that
engages in the business of collecting past-due debts or other causes
of action, which debts or causes of action then belong to another or
formerly belonged to another. <A collection agency that sues on any
debt or cause of action that was assigned to it or purchased by it after
maturity is conclusively presumed to have purchased it for the purpose
of collecting it by legal proceedings. If a defendant shall prove in
any legal proceedings that said proceeding was instituted or prosecuted
in violation of this act, it shall be a complete defense to said proceed-
ing and a bar to any subsequent proceeding on the same debt or cause
of action. Provided, however, that the provisions of this act shall not
apply to the purchase of debts or other causes of action from a receiver,
trustee in bankruptcy, trustee under a deed of assignment, or any
estate or corporation that is in liquidation or to companies engaged
in writing credit insurance.