(a)
Before providing or contracting to provide debt-management services, a registered
provider shall give the individual an itemized list of goods and services and the
charges for each. The list shall be clear and conspicuous, be in a record the
individual may keep whether or not the individual assents to an agreement, and
describe the goods and services the provider offers:
(1) Free of additional charge if the individual enters into an agreement;
(2) For a charge if the individual does not enter into an agreement; and
(3) For a charge if the individual enters into an agreement, using the
following terminology, as applicable, and format:
Set-up fee dollar amount of fee
Monthly service fee dollar amount of fee or method of determining
amount
Settlement fee dollar amount of fee or method of determining amount
Goods and services in addition to those provided in connection with a plan:
(item) dollar amount or method of determining amount
(item) dollar amount or method of determining amount.
(b) A provider may not furnish or contract to furnish debt-management
services unless the provider, through the services of a counselor or debt specialist:
(1) Provides the individual with reasonable education about the management
of personal finance. The provider shall maintain records of the education provided
to an individual pursuant to this subsection (b)(1).
(2) Has prepared a financial analysis; and
(3) If the individual is to make regular, periodic payments:
(A) Has prepared a plan, as defined in section 5-19-202 (13), for the
individual;
(B) Has made a determination, based on the provider's analysis of the
information provided by the individual and otherwise available to it, that the plan is
suitable for the individual and the individual will be able to meet the payment
obligations under the plan; and
(C) Believes that each creditor of the individual listed as a participating
creditor in the plan will accept payment of the individual's debts as provided in the
plan.
(c) Before an individual assents to an agreement to engage in a plan, a
provider shall:
(1) Provide the individual with a copy of the analysis and plan required by
subsection (b) of this section in a record that identifies the provider and that the
individual may keep whether or not the individual assents to the agreement;
(2) Inform the individual of the availability, at the individual's option, of
assistance by a toll-free communication system or in person to discuss the financial
analysis and plan required by subsection (b) of this section; and
(3) With respect to all creditors identified by the individual or otherwise
known by the provider to be creditors of the individual, provide the individual with a
list of:
(A) Creditors that the provider expects to participate in the plan and grant
concessions;
(B) Creditors that the provider expects to participate in the plan but not
grant concessions; and
(C) Creditors that the provider expects not to participate in the plan.
(D) (Deleted by amendment, L. 2024).
(d) Before an individual assents to an agreement to engage in a plan, the
provider shall inform the individual, in a record that contains nothing else, that is
given separately, and that the individual may keep whether or not the individual
assents to the agreement:
(1) Of the name and business address of the provider;
(2) That plans are not suitable for all individuals and the individual may ask
the provider about other ways, including bankruptcy, to deal with indebtedness;
(3) That establishment of a plan may adversely affect the individual's credit
rating or credit scores;
(4) That nonpayment of debt may lead creditors to increase finance and
other charges or undertake collection activity, including litigation;
(5) Unless it is not true, that the provider may receive compensation from the
creditors of the individual; and
(6) That, unless the individual is insolvent, if a creditor settles for less than
the full amount of the debt, the plan may result in the creation of taxable income to
the individual, even though the individual does not receive any money.
(e) If a provider may receive payments from an individual's creditors and the
plan contemplates that the individual's creditors will reduce finance charges or
fees for late payment, default, or delinquency, the provider may comply with
subsection (d) of this section by providing the following disclosure, surrounded by
black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals, and you may ask
us to provide information about other ways, including bankruptcy, to deal with your
debts.
(2) Using a debt-management plan may hurt your credit rating or credit
scores.
(3) We may receive compensation for our services from your creditors.
Name and business address of provider
(f) If a provider will not receive payments from an individual's creditors and
the plan contemplates that the individual's creditors will reduce finance charges or
fees for late payment, default, or delinquency, a provider may comply with
subsection (d) of this section by providing the following disclosure, surrounded by
black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals, and you may ask
us to provide information about other ways, including bankruptcy, to deal with your
debts.
(2) Using a debt-management plan may hurt your credit rating or credit
scores.
Name and business address of provider
(g) If a plan contemplates that creditors will settle debts for less than the
full principal amount of debt owed, a provider may comply with subsection (d) of
this section by providing the following disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Our program is not right for all individuals, and you may ask us to provide
information about bankruptcy and other ways to deal with your debts.
(2) Nonpayment of your debts under our program may:
Hurt your credit rating or credit scores;
Lead your creditors to increase finance and other charges; and
Lead your creditors to undertake activity, including lawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxable income to
you, even though you will not actually receive any money.
Name and business address of provider