MississippiHB 12652026 Regular SessionHouseWALLET

Mississippi Debt Management Services Act; delete repealer on.

Sponsored By: Shane Aguirre (Republican)

Signed by Governor

Banking and Financial ServicesBusiness and Financial Institutions

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 5 benefits, 1 costs, 1 mixed.

Licenses, bonds, and fees for providers

Starting July 1, 2026, you must hold a state license to offer debt management in Mississippi. The initial application costs $750; renewal is $475 each year by December 31, with up to $25 per day in penalties if you operate unlicensed or after expiration. You must keep a $50,000 surety bond or deposit $50,000 in cash, a CD, or government bonds. The commissioner acts on complete applications within 30 days; you can request a hearing within 60 days in some denials or delays. Regulators can examine books without notice and charge $300 to $600 per office, plus out-of-state record costs, usually no more than once every two years.

Escrow, clear contracts, and reports

Starting July 1, 2026, providers must put your payments in a federally insured escrow within two business days and send them to creditors within 15 business days. They must keep escrow money separate, keep records for you, fix wrong payments, and repay any creditor charges they cause. Work cannot start until you sign and receive a dated written agreement listing services, fees, bond and escrow bank info, your debts, the payment schedule, and your right to cancel. You must get a written account report at least once each quarter. Escrow funds are held for you and protected from trustee claims.

Tighter rules for payment processors

Starting July 1, 2026, a licensee must give the Department 10 days’ written notice before using a third-party payment processor and share contract details and expected daily funds. Each processor must post a $50,000 bond plus $50,000 per extra licensee, up to $150,000, or post other assets; the Department must confirm before use. The processor must allow Department exams of records, and the licensee pays the exam cost. Contracts must allow 30 days’ written notice to end service. No processor bond is needed if the licensee keeps cash, a CD, or government bonds on deposit. The law defines which processors are covered and excludes companies that only route electronic payments and their sponsoring banks.

Bans on risky practices and ads

Starting July 1, 2026, providers may not buy your debt, lend you money, or take a mortgage or other security in your property. They may not act as a debt collector or set up a plan that leaves you owing more at the end. Ads shown mainly in Mississippi must not be false or misleading and must include "Licensed Debt Management Service Provider." Media outlets are not made liable by this rule.

Caps on fees for debt help

Starting July 1, 2026, providers face fee limits. Monthly maintenance is capped at $30 after a free first counseling session. The one-time setup fee is capped at $75. An individual credit report is capped at $15; a joint report at $25. Optional education is capped at $50. Bankruptcy consultations by approved nonprofit credit counselors are capped at $50.

Stronger enforcement and right to sue

Starting July 1, 2026, after notice and hearing the commissioner can order violations to stop, fine up to $500 per violation, and suspend or revoke licenses for knowing violations, insolvency, refusing exams, or similar grounds. The state may collect penalties under the surety bond. You can sue a provider to recover actual damages, costs, and reasonable attorney’s fees. The department can also hire extra staff to enforce this law.

Debt help law stays and clarifies

Starting July 1, 2026, Mississippi keeps the Debt Management Services Act in force by removing the repealer. The law defines what counts as a debt management service, like taking your money to pay creditors, negotiating payment terms, or offering to improve your credit record. It also defines who is a debt management service provider and lists groups that are not covered, such as licensed attorneys and certain banks. This tells consumers and businesses who must be licensed and follow these protections.

Sponsors & Cosponsors

Sponsor

Shane Aguirre
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 333 • No: 2

House vote • 3/18/2026

Concurred in Amend From Senate

Yes: 112 • No: 2

Senate vote • 3/5/2026

Passed As Amended

Yes: 52 • No: 0

Senate vote • 3/4/2026

Passed

Yes: 51 • No: 0

House vote • 2/10/2026