Title 6, Commerce and Trade

§ 2407. Form and terms of contract. (a) Each contract between the buyer and a credit services organization for the purchase of the services of the credit services organization must be in writing, dated, signed by the buyer, and must include: (1) A statement in type that is boldfa…

§ 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;

§ 2407C. Required disclosures. Any commercial communication by a mortgage loan modification services provider shall include the following statements in a clear and prominent format: (1) “(Name of Company) is not associated with the government, and our service is not approved by t…

§ 2408. Waiver. (a) A credit services organization may not attempt to cause a buyer to waive a right under this chapter. (b) A waiver by a buyer of any part of this chapter is void.68 Del. Laws, c. 180, § 1;

§ 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 …

§ 2408C. Prohibited acts. A mortgage loan modification services provider may not: (1) Misrepresent, expressly or by implication, that the provider is affiliated with, endorsed or approved by, or otherwise associated with: a. The United States government, b. Any governmental homeo…

§ 2409. Private enforcement. (a) A buyer injured by a violation of this chapter may bring an action for injunctive relief or recovery of damages, or both. The damages awarded may not be less than the amount paid by the buyer to the credit services organization and may include pun…

§ 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: …

§ 2409C. Enforcement. (a) The Attorney General shall have the same authority to enforce and carry out this chapter as is granted by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title. (b) If a court or tribunal of competent jurisdiction finds that any person h…

§ 2410. Enforcement by the Attorney General. (a) The Attorney General shall have the same authority to enforce and carry out this subchapter as granted by § 2517 of Title 29 and by §§ 2511-2527 and §§ 2531-2536 of this title. (b) Any violation of § 2403 of this title shall be dee…

§ 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…

§ 2411. Statute of limitations. An action may not be brought under § 2409 or § 2410 of this title after 4 years after the date of the execution of the contract for services to which the action relates.68 Del. Laws, c. 180, § 1;

§ 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…

§ 2412. Criminal penalty. An offense under this chapter is a class B misdemeanor.68 Del. Laws, c. 180, § 1;

§ 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 …

§ 2413. Burden of proving exemption. In an action under this chapter the burden of proving an exemption under § 2402 of this title shall be on the person claiming the exemption.68 Del. Laws, c. 180, § 1;

§ 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 …

§ 2413B. Foreclosure consulting contract. (a) A foreclosure consulting contract shall be in writing and provided to the homeowner, without changes, alterations, or modification, for review at least 24 hours before it signed by the homeowner. (b) A foreclosure consulting contract …

§ 2414. Remedies cumulative. The remedies provided by this chapter are in addition to any other remedies provided by law.68 Del. Laws, c. 180, § 1;

§ 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…

§ 2414B. Waiver of rights. Any provision in a foreclosure consulting contract that attempts or purports to waive the homeowner’s rights under this chapter, consent to jurisdiction for litigation or choice of law in a state other than this State, consent to a venue in a county oth…

§ 2415A. Requirement of good faith. A provider shall act in good faith in all matters under this chapter.75 Del. Laws, c. 430, § 1;

§ 2415B. Prohibited acts. (a) A foreclosure consultant may not: (1) Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that t…

§ 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,…

§ 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 …

§ 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…

§ 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…

§ 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…

§ 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…

§ 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…

§ 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…

§ 2423B. Notice of transfer of deed or title. (a) If a foreclosure reconveyance is included in a foreclosure consulting contract or arranged after the execution of a foreclosure consulting contract, the foreclosure purchaser shall provide the homeowner with a document entitled “N…

§ 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…

§ 2424B. Waiver of rights. Any provision in an agreement concerning a foreclosure reconveyance that attempts or purports to waive the homeowner’s rights under this chapter, consent to jurisdiction for litigation or choice of law in a state other than this State, consent to a venu…

§ 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…

§ 2425B. Prohibited acts. A foreclosure purchaser may not: (1) Enter into, or attempt to enter into, a foreclosure reconveyance with a homeowner unless: a. The foreclosure purchaser verifies and can demonstrate that the homeowner has or will have a reasonable ability to pay for t…

§ 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 …

§ 2426B. Presumptions, accounting, bona fide purchaser. (a) For the purposes of § 2425B(1)a. of this title, there is a rebuttable presumption that: (1) A homeowner has a reasonable ability to pay for a subsequent reconveyance of the property if the homeowner’s payments for primar…

§ 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…

§ 2427B. Enforcement. (a) The Attorney General shall have the same authority to enforce and carry out this chapter as is granted by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title. (b) If a court or tribunal of competent jurisdiction finds that any person h…

§ 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…

§ 2428B. Remedies, penalties, and violation of order or injunction. (a) A person engages in a deceptive trade practice and is subject to the remedies available in § 2533 of this title when, in the course, of such person’s business, vocation, or occupation, such person violates an…

§ 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…

§ 2429B. Remedies and penalties not exclusive. The remedies and penalties provided for in this chapter are not exclusive and shall be in addition to any other procedures, rights or remedies which exist with respect to any other provisions of law including but not limited to state…

§ 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;

§ 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…