Indiana § 28-1-29-8 Agreement between licensee and debtor; contents; delivery of
electronic record; debtor's right to terminate; creditor's decision to
reject or withdraw from plan; notice to creditors; payments; budget
analysis; term of agreement; carrying on other business; toll free
communication system; good faith

Indiana Statutes

§ 28-1-29-8 — Agreement between licensee and debtor; contents; delivery of electronic record; debtor's right to terminate; creditor's decision to reject or withdraw from plan; notice to creditors; payments; budget analysis; term of agreement; carrying on other business; toll free communication system; good faith

Indiana·Art. 1 DEPARTMENT OF FINANCIAL INSTITUTIONS·Ch. 29 Debt Management Companies

(a)An agreement between a licensee and a debtor must:

(1)be in a written form;

(2)be dated and signed by the licensee and the debtor;

(3)include the name of the debtor and the address where the debtor resides;

(4)include the name, business address, and telephone number of the licensee;

(5)be delivered to the debtor immediately upon formation of the agreement; and

(6)disclose the following:

(A)The services to be provided.

(B)The amount or method of determining the amount of all fees and charges, individually itemized, to be paid by the debtor.

(C)The schedule of payments to be made by or on behalf of the debtor, including the amount of each payment, the date on which each payment is due, and an estimate of the date of the final payment.

(D)If a plan provides for regular periodic

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(a) An agreement between a licensee and a
debtor must:
(1) be in a written form;
(2) be dated and signed by the licensee and the debtor;
(3) include the name of the debtor and the address where the
debtor resides;
(4) include the name, business address, and telephone number of
the licensee;
(5) be delivered to the debtor immediately upon formation of the
agreement; and
(6) disclose the following:
(A) The services to be provided.
(B) The amount or method of determining the amount of all
fees and charges, individually itemized, to be paid by the
debtor.
(C) The schedule of payments to be made by or on behalf of the
debtor, including the amount of each payment, the date on
which each payment is due, and an estimate of the date of the
final payment.
(D) If a plan provides for regular periodic payments to
creditors:
(i) each creditor of the debtor to which payment will be made,
the amount owed to each creditor, and any concessions the
licensee reasonably believes each creditor will offer; and
(ii) the schedule of expected payments to each creditor,
including the amount of each payment and the date on which
the payment will be made.
(E) Each creditor that the licensee believes will not participate
in the plan and to which the licensee will not direct payment.
(F) The manner in which the licensee will comply with the
licensee's obligations under section 9(k) of this chapter.
(G) That:
(i) the licensee may terminate the agreement for good cause,
upon return of unexpended money of the debtor; and
(ii) the debtor may contact the department with any questions
or complaints regarding the licensee.
(H) The address, telephone number, and Internet address or
web site of the department.
(I) That the debtor has a right to terminate the agreement at any
time without penalty (notwithstanding the close-out fee as
permitted by section 8.3(d) of this chapter) or obligation.
(J) That the debtor authorizes any bank insured by the Federal
Deposit Insurance Corporation in which the licensee or the
licensee's agent has established a trust account to disclose to the
department any financial records relating to the trust account.
(K) That the licensee shall notify the debtor within five (5) days
after learning of a creditor's final decision to reject or withdraw
from a plan under the agreement.
(b) For purposes of subsection (a)(5), delivery of an electronic
record occurs when:
(1) the record is made available in a format in which the debtor
may retrieve, save, and print the record; and
(2) the debtor is notified that the record is available.
(c) A debtor may exercise the debtor's right to terminate the
agreement at any time without penalty (notwithstanding the close-out
fee as permitted by section 8.3(d) of this chapter) or obligation, as
described in subsection (a)(6)(I), by giving the licensee written or
electronic notice, in which event:
(1) the licensee shall:
(A) refund all unexpended money that the licensee or the
licensee's agent has received from or on behalf of the debtor for
the reduction or satisfaction of the debtor's debt; and
(B) notify immediately in writing all creditors in the debt
management plan of the cancellation by the contract debtor;
and
(2) all powers of attorney granted by the debtor to the licensee are
revoked and ineffective.
(d) A licensee's notice of a creditor's final decision to reject or
withdraw from a plan under the agreement, as described in subsection
(a)(6)(K) must include:
(1) the identity of the creditor; and
(2) a statement that the debtor has the right to modify or terminate
the agreement.
(e) All creditors included in the plan must be notified of the contract
debtor's and licensee's relationship.
(f) A licensee shall give to the contract debtor a dated receipt for
each payment, at the time of the payment, unless the payment is made
by check, money order, or automated clearinghouse withdrawal as
authorized by the contract debtor.
(g) A licensee may not enter into an agreement with a debtor unless
the licensee does the following:
(1) Conducts a thorough, written budget analysis of the debtor.
(2) Determines, based on the analysis of the information provided
by the debtor or otherwise available to the licensee, that:
(A) a debt management plan is a suitable solution for the
debtor; and
(B) the debtor can reasonably meet the payments required
under a proposed debt management plan.
(3) If:
(A) the licensee has made a determination described in
subdivision (2)(A); and
(B) the debtor's current monthly expense and debt payments
exceed the debtor's net income;
establishes a written plan that supplements the debt management
plan and specifies the manner by which it will be possible for the
debtor to meet the payment obligations under a proposed debt
management plan.
(h) A licensee may not enter into an agreement with a debtor for a
period longer than sixty (60) months.
(i) A licensee may carry on other business at a location where the
licensee engages in debt management services unless the licensee
carries on other business for the purpose of evasion or violation of this
chapter.
(j) A licensee shall maintain a toll free communication system,
staffed at a level that reasonably permits a contract debtor to speak to
a counselor, debt specialist, or customer service representative, as
appropriate, during ordinary business hours.
(k) A debt management company shall act in good faith in all
matters under this chapter.
Formerly: Acts 1971, P.L.397, SEC.1; Acts 1972, P.L.10,
SEC.6. As amended by Acts 1981, P.L.256, SEC.4; P.L.42-1993,
SEC.54; P.L.196-1996, SEC.3; P.L.63-2001, SEC.13 and
P.L.134-2001, SEC.14; P.L.213-2007, SEC.48; P.L.217-2007, SEC.46;
P.L.3-2008, SEC.220; P.L.90-2008, SEC.31; P.L.1-2009, SEC.148;
P.L.35-2010, SEC.127; P.L.89-2011, SEC.41; P.L.27-2012, SEC.73;
P.L.216-2013, SEC.26; P.L.186-2015, SEC.33; P.L.73-2016, SEC.22;
P.L.85-2017, SEC.102; P.L.159-2017, SEC.34; P.L.69-2018,
SEC.47.

Indiana § 28-1-29-8 (Agreement between licensee and debtor; contents; delivery of electronic record; debtor's right to terminate; creditor's decision to reject or withdraw from plan; notice to creditors; payments; budget analysis; term of agreement; carrying on other business; toll free communication system; good faith) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.