Title 6 — Commerce and Trade
89 chapters · 627 sections in this title.
6 Del. C. § 2401A. Short title.
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§ 2401A. Short title. This chapter may be cited as the “Delaware Uniform Debt-Management Services Act.”75 Del. Laws, c. 430, § 1;
6 Del. C. § 2402A. Definitions.
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§ 2402A. Definitions. In this chapter: (1) “Affiliate”: (A) With respect to an individual, means: (i) The spouse of the individual; (ii) A sibling of the individual or the spouse of a sibling; (iii) An individual or the spouse of an individual who is a lineal ancestor or lineal d…
6 Del. C. § 2403A. Exempt agreements and persons.
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§ 2403A. Exempt agreements and persons. (a) This chapter does not apply to an agreement with an individual who the provider has no reason to know resides in this State at the time of the agreement. (b) This chapter does not apply to a provider to the extent that the provider: (1)…
6 Del. C. § 2404A. License required.
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§ 2404A. License required. (a) Except as otherwise provided in subsection (b) of this section, a provider may not provide debt-management services to an individual who it reasonably should know resides in this State at the time it agrees to provide the services, unless the provid…
6 Del. C. § 2405A. Application for license — Form, fee, and accompanying documents.
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§ 2405A. Application for license — Form, fee, and accompanying documents. (a) An application for license as a provider must be in a form prescribed by the Attorney General. (b) An application for a license as a provider must be accompanied by: (1) A nonrefundable fee of $2,000, w…
6 Del. C. § 2406A. Application for license — Required information.
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§ 2406A. Application for license — Required information. An application for a license must be signed under oath and include: (1) The applicant’s name, principal business address and telephone number, and all other business addresses in this State, electronic-mail addresses, and I…
6 Del. C. § 2407A. Application for license — Obligation to update information.
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§ 2407A. Application for license — Obligation to update information. An applicant or licensed provider shall notify the Attorney General within 10 days after a change in the information specified in § 2405A or § 2406A of this title.75 Del. Laws, c. 430, § 1;
6 Del. C. § 2408A. Application for license — Public information.
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§ 2408A. Application for license — Public information. Except for the information required by § 2406A(8), (15), and (18) of this title and the addresses required by § 2406A(5) of this title, the Attorney General shall make the information in an application for a provider license …
6 Del. C. § 2409A. License — Issuance or denial.
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§ 2409A. License — Issuance or denial. (a) Except as otherwise provided in subsections (b) and (c) of this section, the Attorney General shall issue a provider license to a person who complies with §§ 2405A and 2406A of this title. (b) The Attorney General may deny a license if: …
6 Del. C. § 2410A. License — Timing.
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§ 2410A. License — Timing. (a) The Attorney General shall approve or make a preliminary determination to deny an initial license as a provider within 120 days from the date that the Attorney General determines that the application as filed is complete. In connection with a reques…
6 Del. C. § 2411A. Renewal of licenses.
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§ 2411A. Renewal of licenses. (a) A provider must obtain a renewal of its license annually. (b) An application for renewal of a provider license must be in a form prescribed by the Attorney General signed under oath, and: (1) Be filed no fewer than 30 and no more than 60 days bef…
6 Del. C. § 2412A. License in another state.
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§ 2412A. License in another state. If a provider holds a license or certificate of registration in another state authorizing it to provide debt-management services, and the Attorney General has approved the application forms of that state for use under this chapter, the provider …
6 Del. C. § 2413A. Bond required.
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§ 2413A. Bond required. (a) Except as otherwise provided in § 2414A of this title, every licensed provider shall file with the Attorney General, in a form satisfactory to the Attorney General, an original corporate surety bond, with surety provided by a corporation authorized to …
6 Del. C. § 2414A. Bond required — Substitute.
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§ 2414A. Bond required — Substitute. (a) In lieu of requiring the filing of a surety bond, the Attorney General may, at the Attorney General’s discretion, accept from a licensed provider an irrevocable letter of credit. Such irrevocable letters of credit shall be provided by an i…
6 Del. C. § 2415A. Requirement of good faith.
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§ 2415A. Requirement of good faith. A provider shall act in good faith in all matters under this chapter.75 Del. Laws, c. 430, § 1;
6 Del. C. § 2416A. Customer service.
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§ 2416A. Customer service. A provider that is required to be licensed under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate,…
6 Del. C. § 2417A. Prerequisites for providing debt-management services.
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§ 2417A. Prerequisites for providing debt-management services. (a) Before providing debt-management services, a licensed provider shall give the individual an itemized list of goods and services and the charges for each. The list must be clear and conspicuous, be in a record the …
6 Del. C. § 2418A. Communication by electronic or other means.
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§ 2418A. Communication by electronic or other means. (a) In this section: (1) “Federal act” means the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., as amended; (2) “Consumer” means an individual who seeks or obtains goods or services that ar…
6 Del. C. § 2419A. Form and contents of agreement.
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§ 2419A. Form and contents of agreement. (a) An agreement must: (1) Be in a record; (2) Be dated and signed by the provider and the individual; (3) Include the name of the individual and the address where the individual resides; (4) Include the name, business address, and telepho…
6 Del. C. § 2420A. Cancellation of agreement; waiver.
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§ 2420A. Cancellation of agreement; waiver. (a) An individual may cancel an agreement before midnight of the third business day after the individual assents to it, unless the agreement does not comply with subsection (b) of this section or § 2419A or 2428A of this title, in which…
6 Del. C. § 2421A. Required language.
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§ 2421A. Required language. Unless the Attorney General, by rule, provides otherwise, the disclosures and documents required by this chapter must be in English. If a provider communicates with an individual primarily in a language other than English, the provider must furnish a t…
6 Del. C. § 2422A. Trust account.
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§ 2422A. Trust account. (a) All money paid to a provider by or on behalf of an individual pursuant to a plan for distribution to creditors is held in trust. Within 2 business days after receipt, the provider shall deposit the money in a trust account established for the benefit o…
6 Del. C. § 2423A. Fees and other charges.
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§ 2423A. Fees and other charges. (a) A provider may not impose directly or indirectly a fee or other charge on an individual or receive money from or on behalf of an individual for debt-management services except as permitted by this section. (b) A provider may not impose charges…
6 Del. C. § 2424A. Voluntary contributions.
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§ 2424A. Voluntary contributions. A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual. A provider may accept voluntary contributions from an individual but, until 30 days after complet…
6 Del. C. § 2425A. Voidable agreements.
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§ 2425A. Voidable agreements. (a) If a provider imposes a fee or other charge or receives money or other payments not authorized by § 2423A or § 2424A of this title, the individual may void the agreement and recover as provided in § 2435A of this title. (b) If a provider is not l…
6 Del. C. § 2426A. Termination of agreements.
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§ 2426A. Termination of agreements. (a) If an individual who has entered into an agreement fails for 60 days to make payments required by the agreement, a provider may terminate the agreement. (b) If a provider holds money on behalf of a debtor to pay creditors and a provider or …
6 Del. C. § 2427A. Periodic reports and retention of records.
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§ 2427A. Periodic reports and retention of records. (a) A provider shall provide the accounting required by subsection (b) of this section: (1) Upon cancellation or termination of an agreement; and (2) Before cancellation or termination of any agreement: (A) At least once each mo…
6 Del. C. § 2428A. Prohibited acts and practices.
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§ 2428A. Prohibited acts and practices. (a) A provider may not, directly or indirectly: (1) Misappropriate or misapply money held in trust; (2) Settle a debt on behalf of an individual for more than 50 percent of the amount of the debt owed a creditor, unless the individual assen…
6 Del. C. § 2429A. Notice of litigation.
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§ 2429A. Notice of litigation. No later than 30 days after a provider has been served with notice of a civil action for violation of this chapter by or on behalf of an individual who resides in this state at either the time of an agreement or the time the notice is served, the pr…
6 Del. C. § 2430A. Advertising.
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§ 2430A. Advertising. A provider that advertises debt-management services shall disclose in an easily comprehensible manner the information specified in § 2417A(d)(3) and (4) of this title.75 Del. Laws, c. 430, § 1;
6 Del. C. § 2431A. Liability for the conduct of other persons.
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§ 2431A. Liability for the conduct of other persons. If a provider delegates any of its duties or obligations under an agreement or this chapter to another person, including an independent contractor, the provider is liable for conduct of the person which, if done by the provider…
6 Del. C. § 2432A. Powers of Attorney General.
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§ 2432A. Powers of Attorney General. (a) The Attorney General may act on the Attorney General’s own initiative or in response to complaints, and may receive complaints, take action to obtain voluntary compliance with this chapter, and seek or provide remedies as provided in this …
6 Del. C. § 2433A. Administrative remedies.
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§ 2433A. Administrative remedies. (a) In addition to any other enforcement method specified in this Code, the Attorney General may enforce this chapter and the rules adopted under this chapter by taking one or more of the following actions: (1) Ordering a provider or a director, …
6 Del. C. § 2434A. Suspension, revocation, or nonrenewal of license.
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§ 2434A. Suspension, revocation, or nonrenewal of license. (a) In this section “insolvent” means: (1) Having generally ceased to pay debts in the ordinary course of business other than as a result of good-faith dispute; (2) Being unable to pay debts as they become due; or (3) Bei…
6 Del. C. § 2435A. Private enforcement.
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§ 2435A. Private enforcement. (a) If an individual voids an agreement pursuant to § 2425A(b) of this title, the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except amounts paid to creditors, in a…
6 Del. C. § 2436A. Violation of unfair or deceptive practices statute.
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§ 2436A. Violation of unfair or deceptive practices statute. If an act or practice of a provider violates both this chapter and Chapter 25 of this title, an individual may not recover under both for the same act or practice.75 Del. Laws, c. 430, § 1;
6 Del. C. § 2437A. Statute of limitations.
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§ 2437A. Statute of limitations. (a) An action or proceeding brought pursuant to § 2433A(a), (b), or (c) of this title must be commenced within 4 years after the conduct that is the basis of the Attorney General’s complaint. (b) An action brought pursuant to § 2435A of this title…
6 Del. C. § 2438A. Uniformity of application and construction.
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§ 2438A. Uniformity of application and construction. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.75 Del. Laws, c. 430, § 1;
6 Del. C. § 2439A. Relation to Electronic Signatures in Global and National Commerce Act.
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§ 2439A. Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. § 7001 et seq.) but does not modify, limit, or supersede § 101(c) of that…