State Codes and Statutes

Statutes > North-dakota > T13 > T13c07

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CHAPTER 13-07CONSUMER CREDIT COUNSELING SERVICES13-07-01. Consumer credit counseling service - Definition. As used in this chapter,&quot;consumer credit counseling service&quot; means a nonprofit corporation engaged in the business of<br>debt adjusting as defined in section 13-06-01.13-07-02.Consumer credit counseling service - Contract requirements.Anyagreement between a consumer credit counseling service and a debtor for counseling and<br>assistance must be in writing and signed by both parties.The consumer credit counselingservice shall give the debtor a copy of the signed agreement. The agreement must disclose the<br>total amount that may be retained by the consumer credit counseling service if the contract is<br>fully performed, the terms upon which the debtor may cancel the contract, and all debts that are<br>to be managed by the counseling service, including the name of each creditor and the amount of<br>each debt. A consumer credit counseling service may not enter an agreement with a debtor<br>unless a thorough written budget analysis indicates that the debtor can reasonably meet the<br>requirements of the financial adjustment plan and that the debtor will be benefited by the plan.13-07-03. Consumer credit counseling service - Surety bond or other security. Aconsumer credit counseling service entering an agreement with a debtor who resides in this state<br>shall file with the attorney general a surety bond or other security in an amount equal to the<br>largest sum accrued in the service's trust account during the prior year, or five thousand dollars,<br>whichever is greater. The bond or other security must be payable to the state of North Dakota<br>and must be acceptable to the attorney general for the use and benefit of debtors making<br>payments to a consumer credit counseling service and suffering damages caused by the<br>consumer credit counseling service.13-07-04. Consumer credit counseling service - Trust accounts. A consumer creditcounseling service shall deposit in a trust account in a financial institution, within one business<br>day of receipt, any payments received from or on behalf of a debtor. A debtor's payments must<br>be identifiable in the trust account. Funds in the trust account may not be commingled with any<br>other funds. The consumer credit counseling service shall credit any interest accrued as a result<br>of payments deposited in a trust account to debt management education programs.13-07-05. Consumer credit counseling service - Accounting records - Availabilityof statements.A consumer credit counseling service shall maintain books, records, andaccounts in a manner that allows the attorney general to determine compliance with the law. A<br>consumer credit counseling service shall prepare a weekly statement of all receipts and<br>disbursements, including payments received from or on behalf of a debtor, disbursements made<br>on behalf of the debtor, fees collected, and funds held in escrow.The consumer creditcounseling service shall make available to each debtor, upon request, a copy of the debtor's<br>statement of account. All books, records, and accounts must be retained by a consumer credit<br>counseling service for at least six years after the final entry of any recorded transaction.13-07-06. Fees - Payments - Cancellation. A consumer credit counseling service maycharge an origination fee of up to fifty dollars, which may be subtracted from the initial amount<br>paid by the debtor to the counseling service.The consumer credit counseling service maywithdraw and retain as partial payment of the service's total fee up to fifteen percent of any sum<br>deposited by the debtor for distribution. The remainder must be disbursed to the listed creditors<br>in accordance with the parties' agreement. Disbursement must be made within forty-five days<br>after deposit by the debtor.Before an automatic termination, either party may cancel theagreement without cause upon giving to the other party thirty days' written notice of an intent to<br>cancel. In the event of a cancellation, the consumer credit counseling service shall notify the<br>debtor's creditors within thirty days.13-07-07. Prohibitions - Investigation - Civil penalty. A consumer credit counselingservice may not take a confession of judgment or a power of attorney to confess judgment<br>against the debtor or appear as the debtor in any judicial proceeding. The attorney general may,Page No. 1upon the attorney general's own motion, and shall, upon receipt of a complaint, investigate any<br>alleged violation of law by a consumer credit counseling service. For that purpose, the attorney<br>general may subpoena witnesses, administer oaths, take testimony, and require the production<br>of books, documents, and other records. The attorney general may institute a civil action in the<br>name of the state in the district court for an injunction prohibiting any practice in violation of this<br>chapter. The court, upon notice to the defendant of not less than five days, and upon proof that<br>the defendant has engaged in a practice in violation of this chapter may enjoin the defendant<br>from engaging in any practice in violation of this chapter. In addition, the court may impose a<br>civil penalty not to exceed five thousand dollars for each violation of this chapter. The attorney<br>general may recover costs and disbursements, including the costs of investigation and<br>reasonable attorney's fees.Page No. 2Document Outlinechapter 13-07 consumer credit counseling services

State Codes and Statutes

Statutes > North-dakota > T13 > T13c07

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CHAPTER 13-07CONSUMER CREDIT COUNSELING SERVICES13-07-01. Consumer credit counseling service - Definition. As used in this chapter,&quot;consumer credit counseling service&quot; means a nonprofit corporation engaged in the business of<br>debt adjusting as defined in section 13-06-01.13-07-02.Consumer credit counseling service - Contract requirements.Anyagreement between a consumer credit counseling service and a debtor for counseling and<br>assistance must be in writing and signed by both parties.The consumer credit counselingservice shall give the debtor a copy of the signed agreement. The agreement must disclose the<br>total amount that may be retained by the consumer credit counseling service if the contract is<br>fully performed, the terms upon which the debtor may cancel the contract, and all debts that are<br>to be managed by the counseling service, including the name of each creditor and the amount of<br>each debt. A consumer credit counseling service may not enter an agreement with a debtor<br>unless a thorough written budget analysis indicates that the debtor can reasonably meet the<br>requirements of the financial adjustment plan and that the debtor will be benefited by the plan.13-07-03. Consumer credit counseling service - Surety bond or other security. Aconsumer credit counseling service entering an agreement with a debtor who resides in this state<br>shall file with the attorney general a surety bond or other security in an amount equal to the<br>largest sum accrued in the service's trust account during the prior year, or five thousand dollars,<br>whichever is greater. The bond or other security must be payable to the state of North Dakota<br>and must be acceptable to the attorney general for the use and benefit of debtors making<br>payments to a consumer credit counseling service and suffering damages caused by the<br>consumer credit counseling service.13-07-04. Consumer credit counseling service - Trust accounts. A consumer creditcounseling service shall deposit in a trust account in a financial institution, within one business<br>day of receipt, any payments received from or on behalf of a debtor. A debtor's payments must<br>be identifiable in the trust account. Funds in the trust account may not be commingled with any<br>other funds. The consumer credit counseling service shall credit any interest accrued as a result<br>of payments deposited in a trust account to debt management education programs.13-07-05. Consumer credit counseling service - Accounting records - Availabilityof statements.A consumer credit counseling service shall maintain books, records, andaccounts in a manner that allows the attorney general to determine compliance with the law. A<br>consumer credit counseling service shall prepare a weekly statement of all receipts and<br>disbursements, including payments received from or on behalf of a debtor, disbursements made<br>on behalf of the debtor, fees collected, and funds held in escrow.The consumer creditcounseling service shall make available to each debtor, upon request, a copy of the debtor's<br>statement of account. All books, records, and accounts must be retained by a consumer credit<br>counseling service for at least six years after the final entry of any recorded transaction.13-07-06. Fees - Payments - Cancellation. A consumer credit counseling service maycharge an origination fee of up to fifty dollars, which may be subtracted from the initial amount<br>paid by the debtor to the counseling service.The consumer credit counseling service maywithdraw and retain as partial payment of the service's total fee up to fifteen percent of any sum<br>deposited by the debtor for distribution. The remainder must be disbursed to the listed creditors<br>in accordance with the parties' agreement. Disbursement must be made within forty-five days<br>after deposit by the debtor.Before an automatic termination, either party may cancel theagreement without cause upon giving to the other party thirty days' written notice of an intent to<br>cancel. In the event of a cancellation, the consumer credit counseling service shall notify the<br>debtor's creditors within thirty days.13-07-07. Prohibitions - Investigation - Civil penalty. A consumer credit counselingservice may not take a confession of judgment or a power of attorney to confess judgment<br>against the debtor or appear as the debtor in any judicial proceeding. The attorney general may,Page No. 1upon the attorney general's own motion, and shall, upon receipt of a complaint, investigate any<br>alleged violation of law by a consumer credit counseling service. For that purpose, the attorney<br>general may subpoena witnesses, administer oaths, take testimony, and require the production<br>of books, documents, and other records. The attorney general may institute a civil action in the<br>name of the state in the district court for an injunction prohibiting any practice in violation of this<br>chapter. The court, upon notice to the defendant of not less than five days, and upon proof that<br>the defendant has engaged in a practice in violation of this chapter may enjoin the defendant<br>from engaging in any practice in violation of this chapter. In addition, the court may impose a<br>civil penalty not to exceed five thousand dollars for each violation of this chapter. The attorney<br>general may recover costs and disbursements, including the costs of investigation and<br>reasonable attorney's fees.Page No. 2Document Outlinechapter 13-07 consumer credit counseling services

State Codes and Statutes

State Codes and Statutes

Statutes > North-dakota > T13 > T13c07

Download pdf
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CHAPTER 13-07CONSUMER CREDIT COUNSELING SERVICES13-07-01. Consumer credit counseling service - Definition. As used in this chapter,&quot;consumer credit counseling service&quot; means a nonprofit corporation engaged in the business of<br>debt adjusting as defined in section 13-06-01.13-07-02.Consumer credit counseling service - Contract requirements.Anyagreement between a consumer credit counseling service and a debtor for counseling and<br>assistance must be in writing and signed by both parties.The consumer credit counselingservice shall give the debtor a copy of the signed agreement. The agreement must disclose the<br>total amount that may be retained by the consumer credit counseling service if the contract is<br>fully performed, the terms upon which the debtor may cancel the contract, and all debts that are<br>to be managed by the counseling service, including the name of each creditor and the amount of<br>each debt. A consumer credit counseling service may not enter an agreement with a debtor<br>unless a thorough written budget analysis indicates that the debtor can reasonably meet the<br>requirements of the financial adjustment plan and that the debtor will be benefited by the plan.13-07-03. Consumer credit counseling service - Surety bond or other security. Aconsumer credit counseling service entering an agreement with a debtor who resides in this state<br>shall file with the attorney general a surety bond or other security in an amount equal to the<br>largest sum accrued in the service's trust account during the prior year, or five thousand dollars,<br>whichever is greater. The bond or other security must be payable to the state of North Dakota<br>and must be acceptable to the attorney general for the use and benefit of debtors making<br>payments to a consumer credit counseling service and suffering damages caused by the<br>consumer credit counseling service.13-07-04. Consumer credit counseling service - Trust accounts. A consumer creditcounseling service shall deposit in a trust account in a financial institution, within one business<br>day of receipt, any payments received from or on behalf of a debtor. A debtor's payments must<br>be identifiable in the trust account. Funds in the trust account may not be commingled with any<br>other funds. The consumer credit counseling service shall credit any interest accrued as a result<br>of payments deposited in a trust account to debt management education programs.13-07-05. Consumer credit counseling service - Accounting records - Availabilityof statements.A consumer credit counseling service shall maintain books, records, andaccounts in a manner that allows the attorney general to determine compliance with the law. A<br>consumer credit counseling service shall prepare a weekly statement of all receipts and<br>disbursements, including payments received from or on behalf of a debtor, disbursements made<br>on behalf of the debtor, fees collected, and funds held in escrow.The consumer creditcounseling service shall make available to each debtor, upon request, a copy of the debtor's<br>statement of account. All books, records, and accounts must be retained by a consumer credit<br>counseling service for at least six years after the final entry of any recorded transaction.13-07-06. Fees - Payments - Cancellation. A consumer credit counseling service maycharge an origination fee of up to fifty dollars, which may be subtracted from the initial amount<br>paid by the debtor to the counseling service.The consumer credit counseling service maywithdraw and retain as partial payment of the service's total fee up to fifteen percent of any sum<br>deposited by the debtor for distribution. The remainder must be disbursed to the listed creditors<br>in accordance with the parties' agreement. Disbursement must be made within forty-five days<br>after deposit by the debtor.Before an automatic termination, either party may cancel theagreement without cause upon giving to the other party thirty days' written notice of an intent to<br>cancel. In the event of a cancellation, the consumer credit counseling service shall notify the<br>debtor's creditors within thirty days.13-07-07. Prohibitions - Investigation - Civil penalty. A consumer credit counselingservice may not take a confession of judgment or a power of attorney to confess judgment<br>against the debtor or appear as the debtor in any judicial proceeding. The attorney general may,Page No. 1upon the attorney general's own motion, and shall, upon receipt of a complaint, investigate any<br>alleged violation of law by a consumer credit counseling service. For that purpose, the attorney<br>general may subpoena witnesses, administer oaths, take testimony, and require the production<br>of books, documents, and other records. The attorney general may institute a civil action in the<br>name of the state in the district court for an injunction prohibiting any practice in violation of this<br>chapter. The court, upon notice to the defendant of not less than five days, and upon proof that<br>the defendant has engaged in a practice in violation of this chapter may enjoin the defendant<br>from engaging in any practice in violation of this chapter. In addition, the court may impose a<br>civil penalty not to exceed five thousand dollars for each violation of this chapter. The attorney<br>general may recover costs and disbursements, including the costs of investigation and<br>reasonable attorney's fees.Page No. 2Document Outlinechapter 13-07 consumer credit counseling services

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