(a) A licensee may request or require a consumer, as a condition to the provision of debt resolution services, to establish and place funds into a dedicated account administered by a dedicated account services provider; provided, that:(1) The funds are held in a federal deposit insurance corporation insured bank;(2) The consumer owns the funds held in the account, including all accrued interest on the account, if any;(3) The dedicated account service provider is not owned or controlled by, or affiliated with, the debt resolution services provider. For purposes of this subdivision (a)(3), “control” means the direct or indirect possession of the power to direct or cause the direction of the management of a licensee, whether by contract or through ownership of more than twenty percent (20%) of the voting securities of the licensee;(4) The dedicated account service provider does not give or accept any money or other compensation in exchange for referrals of business involving the debt resolution services;(5) The consumer may terminate the debt resolution services at any time without penalty by giving notice as required in § 47-18-5810(a), and thereafter, the licensee shall notify the dedicated account services provider of the consumer's termination within five (5) business days of receipt of the consumer's notice of intent to terminate debt resolution services; and(6) The agreement discloses the criteria set forth in subdivisions (a)(1)-(5).
(1) The funds are held in a federal deposit insurance corporation insured bank;
(2) The consumer owns the funds held in the account, including all accrued interest on the account, if any;
(3) The dedicated account service provider is not owned or controlled by, or affiliated with, the debt resolution services provider. For purposes of this subdivision (a)(3), “control” means the direct or indirect possession of the power to direct or cause the direction of the management of a licensee, whether by contract or through ownership of more than twenty percent (20%) of the voting securities of the licensee;
(4) The dedicated account service provider does not give or accept any money or other compensation in exchange for referrals of business involving the debt resolution services;
(5) The consumer may terminate the debt resolution services at any time without penalty by giving notice as required in § 47-18-5810(a), and thereafter, the licensee shall notify the dedicated account services provider of the consumer's termination within five (5) business days of receipt of the consumer's notice of intent to terminate debt resolution services; and
(6) The agreement discloses the criteria set forth in subdivisions (a)(1)-(5).
(b) A licensee shall, at the time an agreement is executed by a consumer, or as shortly thereafter as practicable, distribute or otherwise make available to the consumer a copy of the executed agreement. For purposes of this part, electronic distribution of an executed agreement is permitted if the consumer agrees.
(c) The agreement with the consumer must disclose:(1) The services that the licensee will perform;(2) The methodology the licensee will use to calculate fees to be charged for debt resolution services and, if known or if the information to calculate the fee is reasonably available, at the time the agreement is executed, the fees that the licensee will charge;(3) The amount of time estimated on a good faith basis to be necessary to achieve the resolution of all enrolled debts, and to the extent that the service may include a resolution offer to any of the consumer's creditors, the time estimated on a good faith basis when the debt resolution services provider will make a bona fide resolution offer to each creditor;(4) To the extent that the debt resolution services provider may include a resolution offer to any of the consumer's creditors, the amount of money or the percentage of each outstanding debt that the consumer must accumulate before the debt resolution services provider will make a bona fide resolution offer to each creditor;(5) That debt resolution services may not be suitable for all individuals;(6) To the extent that any aspect of the debt resolution services relies upon or results in the consumer's failure to make timely payments to creditors, that the consumer's failure to pay the consumer's debts will likely adversely affect the consumer's creditworthiness, may result in the consumer being subject to collection efforts, including lawsuits by creditors, and may increase the amount of money the consumer owes due to the accrual of fees and interest;(7) That, unless the consumer is insolvent, if a creditor resolves a debt for less than its full amount, the resolution may result in the creation of taxable income to the consumer, even though the consumer does not receive any money;(8) That specific results cannot be predicted or guaranteed and the licensee cannot require a creditor to negotiate or resolve a debt;(9) That debt resolution services programs require an individual to meet regular savings goals in order to enable resolutions;(10) That the licensee does not provide tax, accounting, or legal advice to an individual, unless the licensee is licensed in this state to provide such advice;(11) That the licensee is the consumer's advocate and does not receive compensation from creditors for providing debt resolution services to the consumer;(12) That the licensee does not make monthly or other payments to the consumer's creditors;(13) The list of debts that the agreement covers; and(14) That, if applicable, the consumer's rights are subject to mandatory arbitration of any and all disputes with the debt resolution services provider.
(1) The services that the licensee will perform;
(2) The methodology the licensee will use to calculate fees to be charged for debt resolution services and, if known or if the information to calculate the fee is reasonably available, at the time the agreement is executed, the fees that the licensee will charge;
(3) The amount of time estimated on a good faith basis to be necessary to achieve the resolution of all enrolled debts, and to the extent that the service may include a resolution offer to any of the consumer's creditors, the time estimated on a good faith basis when the debt resolution services provider will make a bona fide resolution offer to each creditor;
(4) To the extent that the debt resolution services provider may include a resolution offer to any of the consumer's creditors, the amount of money or the percentage of each outstanding debt that the consumer must accumulate before the debt resolution services provider will make a bona fide resolution offer to each creditor;
(5) That debt resolution services may not be suitable for all individuals;
(6) To the extent that any aspect of the debt resolution services relies upon or results in the consumer's failure to make timely payments to creditors, that the consumer's failure to pay the consumer's debts will likely adversely affect the consumer's creditworthiness, may result in the consumer being subject to collection efforts, including lawsuits by creditors, and may increase the amount of money the consumer owes due to the accrual of fees and interest;
(7) That, unless the consumer is insolvent, if a creditor resolves a debt for less than its full amount, the resolution may result in the creation of taxable income to the consumer, even though the consumer does not receive any money;
(8) That specific results cannot be predicted or guaranteed and the licensee cannot require a creditor to negotiate or resolve a debt;
(9) That debt resolution services programs require an individual to meet regular savings goals in order to enable resolutions;
(10) That the licensee does not provide tax, accounting, or legal advice to an individual, unless the licensee is licensed in this state to provide such advice;
(11) That the licensee is the consumer's advocate and does not receive compensation from creditors for providing debt resolution services to the consumer;
(12) That the licensee does not make monthly or other payments to the consumer's creditors;
(13) The list of debts that the agreement covers; and
(14) That, if applicable, the consumer's rights are subject to mandatory arbitration of any and all disputes with the debt resolution services provider.
(d) A licensee shall maintain a toll-free telecommunications system, staffed at a level that has adequate capacity to accept requests from the reasonably anticipated volume of consumers contacting the licensee during ordinary business hours.
(e) A licensee may extend credit to a consumer in the form of a deferral of some or all of the licensee's fee for resolving the consumer's debts, at no additional expense to the consumer. A licensee may assist in arranging credit to the consumer if the credit is extended to the consumer by or through a person that is either separately licensed or authorized to perform lending in this state, or exempt from licensure.