South Carolina § 37-7-111 Funds paid to licensee for distribution to creditors; trust accounts; duties and responsibilities.

South Carolina Statutes

§ 37-7-111 — Funds paid to licensee for distribution to creditors; trust accounts; duties and responsibilities.

South Carolina·Title 37 CONSUMER PROTECTION CODE·Ch. 7 CONSUMER CREDIT COUNSELING

(A)Funds paid to the licensee by or on behalf of a consumer for disbursement to the consumer's creditors must be deposited in a trust account established by the licensee for the benefit of debtors.

(B)A credit counseling organization shall:

(1)maintain separate records of account for each debtor to whom the licensee provides credit counseling services;

(2)deposit a payment from a debtor not later than one business day after receipt of the payment;

(3)disburse funds paid by or on behalf of a debtor to the debtor's creditors within five business days after receipt of the funds;

(4)correct misdirected payments resulting from an error by the licensee;

(5)upon request, give a debtor signed, dated receipts for funds received from a debtor under a DMP, or provide a means by which the consu

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(A) Funds paid to the licensee by or on behalf of a consumer for disbursement to the consumer's creditors must be deposited in a trust account established by the licensee for the benefit of debtors. (B) A credit counseling organization shall: (1) maintain separate records of account for each debtor to whom the licensee provides credit counseling services; (2) deposit a payment from a debtor not later than one business day after receipt of the payment; (3) disburse funds paid by or on behalf of a debtor to the debtor's creditors within five business days after receipt of the funds; (4) correct misdirected payments resulting from an error by the licensee; (5) upon request, give a debtor signed, dated receipts for funds received from a debtor under a DMP, or provide a means by which the consumer may view the status of the account electronically; (6) keep all debtor funds separate and apart at all times from funds belonging to the licensee or any of its officers, employees, or agents and use debtor funds for no purpose other than paying bills, invoices, or accounts of the debtor; (7) reconcile the trust account at least once a month. The reconciliation must ascertain the actual cash balance in the account and compare it with the sum of the escrow balances in each debtor's account. If the licensee has more than one trust account, each account must be scheduled and reconciled individually; and (8) render an accounting to the debtor at least once every three months which must itemize the total amount received from the debtor, the total amount paid each creditor, the total amount each creditor has agreed to accept as payment in full on any debt owed by the debtor, the amount of charges deducted, and any amount held in the trust account on behalf of the debtor. A licensee also shall provide an accounting to a debtor within seven days after written demand, but no more than three times for each six-month period.

South Carolina § 37-7-111 (Funds paid to licensee for distribution to creditors; trust accounts; duties and responsibilities.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.