Legislative Session number- 85

Bill Name: SF1532

2E Regulating the business of credit counseling and debt management services;
clarifying debt management services providers under commissioner of commerce
regulatory authority; defining certain terms; requiring debt management service
providers to be registered after a certain date, requiring current licensed debt
proraters to renew licenses as debt management service providers, allowing
continuance for certain unlicensed debt proraters; requiring registration
application to the commissioner of commerce in writing, providing for term and
scope of registration, fees, surety bond, condition of bond, right of action on
bond and a registrant list; requiring commissioner consent for registration
transfers and assignments; requiring annual registration renewal and prescribing
registrant duties; specifying registration denial conditions; authorizing the
commissioner to suspend, revoke or refuse to renew registrations under certain
conditions; requiring written debt management services agreements prior to work
performed or money receipt; providing a debtor right to cancel agreement;
requiring registrant records retention and debtor statements; regulating fees,
payments and creditor consent and withdrawal, payments held in trust, timely
payment of creditors and debt management services plans advertising; specifying
registrant prohibited practices; restricting advertising of debt management
services plans; allowing debtors right to rescind; requiring debt settlement
services proof of insurance evidence, specifying minimum amount, regulating
aggregate fee charges; authorizing debtor private right of action for violation,
providing cumulative remedies and attorney general enforcement; authorizing the
commissioner to investigate registrants and providers; repealing debt prorating
agency licensure regulatory provisions
(rt)