§ 6-1-1107 — Prohibited acts

(1) A foreclosure consultant may not:

(a) Claim, demand, charge, collect, or receive any compensation until after
the foreclosure consultant has fully performed each and every service the
foreclosure consultant contracted to perform or represented that the foreclosure
consultant would perform;

(b) Claim, demand, charge, collect, or receive any interest or any other
compensation for a loan that the foreclosure consultant makes to the home owner
that exceeds the prime rate published by the federal reserve at the time of any loan
plus two percentage points, with the total interest rate not to exceed eight percent
per year;

(c) Take a wage assignment, lien of any type on real or personal property, or
other security to secure the payment of compensation;

(d) Receive any consideration from a third party in connection with
foreclosure consulting services provided to a home owner unless the consideration
is first fully disclosed in writing to the home owner;

(e) Acquire an interest, directly, indirectly, or through an associate, in the
real or personal property of a home owner with whom the foreclosure consultant
has contracted;

(f) Obtain a power of attorney from a home owner for any purpose other than
to inspect documents as provided by law; or

(g) Induce or attempt to induce a home owner to enter into a foreclosure
consulting contract that does not comply in all respects with this subpart 2.

Legislative History

Source: L. 2006: Entire part added, p. 1337, � 1, effective May 30.