(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 without the individual's
agreement to the settlement terms pursuant to a written settlement agreement or
other valid written contractual agreement executed by the individual;
(3) Exercise or attempt to exercise a power of attorney after an individual
has terminated an agreement;
(4) Initiate a transfer from an individual's account at a bank or with another
person unless the transfer is:
(A) A return of money to the individual; or
(B) Before termination of an agreement, properly authorized by the
agreement and this part 2, and for:
(i) Payment to one or more creditors pursuant to a plan; or
(ii) Payment of a fee;
(5) Offer a gift or bonus, premium, reward, or other compensation to an
individual for executing an agreement;
(6) Offer, pay, or give a gift or bonus, premium, reward, or other
compensation to a person for referring a prospective customer, except for a sales
lead, if the person making the referral has a financial interest in the outcome of
debt-management services provided to the customer, unless neither the provider
nor the person making the referral communicates to the prospective customer the
identity of the source of the referral;
(7) Receive a bonus, commission, or other benefit for referring an individual
to a person;
(8) Structure a plan in a manner that would result in a negative amortization
of any of an individual's debts, unless a creditor that is owed a negatively
amortizing debt agrees to refund or waive the finance charge upon payment of the
principal amount of the debt;
(9) Compensate its employees on the basis of a formula that incorporates
the number of individuals the employee induces to enter into agreements;
(10) Settle a debt or lead an individual to believe that a payment to a creditor
is in settlement of a debt to the creditor unless, at the time of settlement, the
individual receives a certification by the creditor that the payment is in full
settlement of the debt;
(11) Make a representation that:
(A) The provider will furnish money to pay bills or prevent attachments;
(B) Payment of a certain amount will permit satisfaction of a certain amount
or range of indebtedness; or
(C) Participation in a plan will or may prevent litigation, collection activity,
garnishment, attachment, repossession, foreclosure, eviction, or loss of
employment;
(12) Misrepresent that it is authorized or competent to furnish legal advice or
perform legal services;
(13) Represent that it is a not-for-profit entity unless it is organized and
properly operating as a not-for-profit under the law of the state in which it was
formed or that it is a tax-exempt entity unless it has received certification of tax-exempt status from the federal internal revenue service; except that, if the provider
represents that it is a not-for-profit entity and the provider does not have tax-exempt status under section 501 (c) (3) of the federal Internal Revenue Code of
1986, as amended, the provider shall state, in a clear and conspicuous manner and
in close proximity to the representation: We are not an educational, charitable, or
religious organization granted tax-exempt status by the Internal Revenue Service.
(14) Take a confession of judgment or power of attorney to confess judgment
against an individual;
(15) Employ an unfair, unconscionable, or deceptive act or practice, including
the knowing omission of any material information; or
(16) Advise, encourage, or suggest to the individual not to make a payment to
creditors under the plan.
(b) If a provider furnishes debt-management services to an individual, the
provider may not, directly or indirectly:
(1) Purchase a debt or obligation of the individual;
(2) Receive from or on behalf of the individual:
(A) A promissory note or other negotiable instrument other than a check or a
demand draft; or
(B) A post-dated check or demand draft;
(3) Lend money or provide credit to the individual, except as a deferral of a
settlement fee at no additional expense to the individual;
(4) Obtain a mortgage or other security interest from any person in
connection with the services provided to the individual;
(5) Except as permitted by federal law, disclose the identity or identifying
information of the individual or the identity of the individual's creditors, except to:
(A) The administrator, upon proper demand;
(B) A creditor of the individual, to the extent necessary to secure the
cooperation of the creditor in a plan; or
(C) The extent necessary to administer the plan;
(6) Except as otherwise provided in section 5-19-223 (d)(2), provide the
individual less than the full benefit of a compromise of a debt arranged by the
provider;
(7) Charge the individual for or provide credit or other insurance, coupons for
goods or services, membership in a club, access to computers or the internet, or any
other matter not directly related to debt-management services or educational
services concerning personal finance; or
(8) Furnish legal advice or perform legal services, unless the person
furnishing that advice to or performing those services for the individual is licensed
to practice law.
(c) This part 2 does not authorize any person to engage in the practice of law.
(d) A provider may not receive a gift or bonus, premium, reward, or other
compensation, directly or indirectly, for advising, arranging, or assisting an
individual in connection with obtaining an extension of credit or other service from a
lender or service provider, except for educational or counseling services required in
connection with a government-sponsored program.
(e) Unless a person supplies goods, services, or facilities generally and
supplies them to the provider at a cost no greater than the cost the person
generally charges to others, a provider may not purchase goods, services, or
facilities from the person if an employee or a person that the provider should
reasonably know is an affiliate of the provider:
(1) Owns more than ten percent of the person; or
(2) Is an employee or affiliate of the person.