Prohibited Practices

(1) A credit counseling service may not: (a) purchase any debt or obligation of a consumer; (b) lend money or provide credit to a consumer; (c) obtain a mortgage or other security interest in any property of a consumer; (d) operate as a collection agency; (e) structure a debt management plan in a way that at the debt management plan's conclusion any debts of the consumer that are subject to the debt management plan are not fully amortized; (f) charge for or provide credit insurance; (g) cause or attempt to cause a consumer to waive or forego any right or benefit that the consumer has under the provisions of this part; or (h) operate in this state without a license. (2) (a) A credit counseling service may not advertise its services in any manner in this state without first being licensed by the department. (b) A credit counseling service or any person on a credit counseling service's behalf may not misrepresent any material fact or make a false promise intended to induce a consumer into entering a debt management plan.