Title 13, Debtor and Creditor Relationship

1. Upon the filing of the application, the approval of the bond, and the payment of the specified fees, the commissioner may issue a license if the commissioner finds all of the following: a. The financial responsibility, experience, character, and general fitness of the applican…

All licenses required under this chapter expire on December thirty-first of each year and may be renewed. Renewals are effective the succeeding January first. Applications for renewal must be submitted at least thirty days before the expiration of the license and must be accompan…

An applicant or licensed provider shall notify the commissioner within ten days after a change in the information provided within the application.

1. Every licensee shall maintain records in conformity with generally accepted accounting principles and practices in a manner that will enable the commissioner to determine whether the licensee is complying with this chapter. The records of a licensee may be maintained electroni…

Any complete application for a license must be approved or denied within sixty days after the filing of the complete application with the commissioner.

1. If the commissioner has reason to believe that grounds for revocation of a license exist, the commissioner may notify the licensee with a notice of hearing stating the contemplated action and in general the grounds thereof and setting the time and place for a hearing thereon. …

1. The commissioner may issue and serve upon a debt-settlement provider officer or employee, and upon the licensee involved, a complaint stating the basis for the commissioner's belief that the officer or employee is willfully engaging or has willfully engaged in any of the follo…

1. A debt-settlement provider may not represent, expressly or by implication, any results or outcomes of its debt-settlement services in any advertising, marketing, or other communication to consumers unless the debt-settlement provider possesses substantiation for the representa…

1. Upon request, each debt-settlement provider shall furnish to the commissioner a copy of the contract entered between the debt-settlement provider and the debtor. The debt-settlement provider shall furnish the debtor with a copy of the written contract at the time of execution …

1. All funds received by a debt-settlement provider or the provider's agent from and for the purpose of paying bills, invoices, or accounts of a debtor constitute trust funds owned by and belonging to the debtor from whom the funds were received. All such funds received by the de…

A provider shall act in good faith in all matters under this chapter.

A provider that is required to be registered 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, during ordinary business…

1. Before the consumer signs a contract, the debt-settlement provider shall provide an oral and written notice to the consumer that clearly and conspicuously discloses all of the following: a. Debt-settlement services may not be suitable for all consumers. b. Using a debt-settlem…

1. Before entering a written contract with a consumer, a debt-settlement provider shall prepare and provide to the consumer in writing and retain a copy of: a. An individualized financial analysis, including the individual's income, expenses, and debts; and b. A statement contain…

1. A debt-settlement provider may not provide debt-settlement service to a consumer without a written contract signed and dated by both the consumer and the debt-settlement provider. 2. Any contract for the provision of debt-settlement service entered in violation of this section…

1. A consumer may cancel a contract with a debt-settlement provider at any time before the debt-settlement provider has performed fully each service the debt-settlement provider contracted to perform or represented that the debt-settlement provider would perform. 2. If a consumer…

1. A debt-settlement provider may not charge fees of any type or receive compensation from a consumer in a type, amount, or timing other than fees or compensation permitted in this section. 2. A debt-settlement provider may not charge or receive from a consumer any enrollment fee…

A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual.

1. A provider directly or indirectly may not: a. Misappropriate or misapply money held in trust; b. Settle a debt on behalf of an individual for more than fifty percent of the principal amount of the debt owed a creditor, unless the individual assents to the settlement after the …

Within thirty 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 a contract or the time the notice is served, the provider shall notify the commissioner…

If a provider delegates any of its duties or obligations under a contract 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, would violate the contract or this chapter.

Insofar as consistent with other provisions of law, the commissioner may: 1. Determine the qualifications of all applicants based on financial responsibility, financial condition, business experience, character, and general fitness which must reasonably warrant the belief that th…

1. Any person that violates this chapter is guilty of a class C felony. 2. The commissioner may impose a civil money penalty not to exceed five thousand dollars per violation upon a person or agency that willfully violates a law, rule, written agreement, or order under this chapt…

1. If a provider imposes a fee or other charge or receives money or other payments not authorized by sections 13-11-21 and 13-11-22, the contract is void and the individual may recover as provided in section 13-11-20. 2. If a provider is not licensed as required by this chapter w…

Any person that is aggrieved by a violation of this chapter may bring an action to enjoin the violation, or for restitution, or both. The court may award the plaintiff the plaintiff's actual restitution or a sum up to two thousand dollars, whichever is greater. The court may awar…

To promote more effective regulation and reduce regulatory burden through supervisory information sharing, the commissioner or commissioner's designee may furnish information to or receive information from a nationwide multistate licensing system for the purpose of regulation of …

Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter 6-08.1 applies to all debt-settlement providers licensed under this chapter.