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S.F. No. 586 - Debt Management and Settlement
 
Author: Senator Kevin Dahle
 
Prepared By:
 
Date: March 4, 2013



 

Sections 1 and 2 provide that only exempt attorneys at law as defined are exempt from regulation as a debt management services provider.

Sections 3 and 4 provide that only exempt attorneys at law as defined are exempt from regulation as a debt settlement services provider.

Section 5 allows a debt settlement services agreement to be in the language the agreement was negotiated, regardless of whether the provider advertises in that language.

Section 6 allows a required disclosure to be in the language the agreement was negotiated, regardless of whether the provider advertises in that language.

Section 7 requires fees under a debt settlement services agreement to be 15% of the aggregate debt when calculated on a percentage of debt basis, and 30% of savings when calculated on a percentage of savings basis. Prohibits a provider from collecting fees until the provider has fully performed all services it agreed to.

Section 8 provides that sections 5 to 7 are effective for debt settlement services agreements entered into on or after Aug. 1, 2013.

 

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