§ 19-14.8-17 Prerequisites for providingdebt-management services. – (a) Before providing debt-management services, a registered provider shall givethe individual an itemized list of goods and services and the charges for each.The list must be clear and conspicuous, be in a record the individual may keepwhether or not the individual assents to an agreement, and describe the goodsand services the provider offers:
(1) Free of additional charge if the individual enters intoan agreement;
(2) For a charge if the individual does not enter into anagreement; and
(3) For a charge if the individual enters into an agreement,using the following terminology, as applicable, and format:
Set-up fee
dollar amount of fee
Monthly service fee
dollar amount of fee or method of determining amount
Settlement fee
dollar amount of fee or method of determining amount
Goods and services in addition to those provided inconnection with a plan:
(item) dollar amount or method of determining amount
(item) dollar amount or method of determining amount.
(b) A provider may not furnish debt-management servicesunless the provider, through the services of a certified counselor:
(1) Provides the individual with reasonable education aboutthe management of personal finance;
(2) Has prepared a financial analysis; and
(3) If the individual is to make regular, periodic payments:
(A) Has prepared a plan for the individual;
(B) Has made a determination, based on the provider'sanalysis of the information provided by the individual and otherwise availableto it, that the plan is suitable for the individual and the individual will beable to meet the payment obligations under the plan; and
(C) Believes that each creditor of the individual listed as aparticipating creditor in the plan will accept payment of the individual'sdebts as provided in the plan.
(c) Before an individual assents to an agreement to engage ina plan, a provider shall:
(1) Provide the individual with a copy of the analysis andplan required by subsection (b) in a record that identifies the provider andthat the individual may keep whether or not the individual assents to theagreement;
(2) Inform the individual of the availability, at theindividual's option, of assistance by a toll-free communication system or inperson to discuss the financial analysis and plan required by subsection (b);and
(3) With respect to all creditors identified by theindividual or otherwise known by the provider to be creditors of theindividual, provide the individual with a list of:
(A) Creditors that the provider expects to participate in theplan and grant concessions;
(B) Creditors that the provider expects to participate in theplan but not grant concessions;
(C) Creditors that the provider expects not to participate inthe plan; and
(D) All other creditors.
(d) Before an individual assents to an agreement to engage ina plan, the provider shall inform the individual, in a record that containsnothing else, that is given separately, and that the individual may keepwhether or not the individual assents to the agreement:
(1) Of the name and business address of the provider;
(2) That plans are not suitable for all individuals and theindividual may ask the provider about other ways, including bankruptcy, to dealwith indebtedness;
(3) That establishment of a plan may adversely affect theindividual's credit rating or credit scores;
(4) That nonpayment of debt may lead creditors to increasefinance and other charges or undertake collection activity, includinglitigation;
(5) Unless it is not true, that the provider may receivecompensation from the creditors of the individual; and
(6) That, unless the individual is insolvent, if a creditorsettles for less than the full amount of the debt, the plan may result in thecreation of taxable income to the individual, even though the individual doesnot receive any money.
(e) If a provider may receive payments from an individual'screditors and the plan contemplates that the individual's creditors will reducefinance charges or fees for late payment, default, or delinquency, the providermay comply with subsection (d) by providing the following disclosure,surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals,and you may ask us to provide information about other ways, includingbankruptcy, to deal with your debts.
(2) Using a debt-management plan may hurt your credit ratingor credit scores.
(3) We may receive compensation for our services from yourcreditors.
Name and business address of provider
(f) If a provider will not receive payments from anindividual's creditors and the plan contemplates that the individual'screditors will reduce finance charges or fees for late payment, default, ordelinquency, a provider may comply with subsection (d) by providing thefollowing disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals,and you may ask us to provide information about other ways, includingbankruptcy, to deal with your debts.
(2) Using a debt-management plan may hurt your credit ratingor credit scores.
Name and business address of provider
(g) If a plan contemplates that creditors will settle debtsfor less than the full principal amount of debt owed, a provider may complywith subsection (d) by providing the following disclosure, surrounded by blacklines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Our program is not right for all individuals, and you mayask us to provide information about bankruptcy and other ways to deal with yourdebts.
(2) Nonpayment of your debts under our program may:
hurt your credit rating or credit scores;
lead your creditors to increase finance and other charges; and
lead your creditors to undertake activity, includinglawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxableincome to you, even though you will not actually receive any money.
§ 19-14.8-17 Prerequisites for providingdebt-management services. – (a) Before providing debt-management services, a registered provider shall givethe individual an itemized list of goods and services and the charges for each.The list must be clear and conspicuous, be in a record the individual may keepwhether or not the individual assents to an agreement, and describe the goodsand services the provider offers:
(1) Free of additional charge if the individual enters intoan agreement;
(2) For a charge if the individual does not enter into anagreement; and
(3) For a charge if the individual enters into an agreement,using the following terminology, as applicable, and format:
Set-up fee
dollar amount of fee
Monthly service fee
dollar amount of fee or method of determining amount
Settlement fee
dollar amount of fee or method of determining amount
Goods and services in addition to those provided inconnection with a plan:
(item) dollar amount or method of determining amount
(item) dollar amount or method of determining amount.
(b) A provider may not furnish debt-management servicesunless the provider, through the services of a certified counselor:
(1) Provides the individual with reasonable education aboutthe management of personal finance;
(2) Has prepared a financial analysis; and
(3) If the individual is to make regular, periodic payments:
(A) Has prepared a plan for the individual;
(B) Has made a determination, based on the provider'sanalysis of the information provided by the individual and otherwise availableto it, that the plan is suitable for the individual and the individual will beable to meet the payment obligations under the plan; and
(C) Believes that each creditor of the individual listed as aparticipating creditor in the plan will accept payment of the individual'sdebts as provided in the plan.
(c) Before an individual assents to an agreement to engage ina plan, a provider shall:
(1) Provide the individual with a copy of the analysis andplan required by subsection (b) in a record that identifies the provider andthat the individual may keep whether or not the individual assents to theagreement;
(2) Inform the individual of the availability, at theindividual's option, of assistance by a toll-free communication system or inperson to discuss the financial analysis and plan required by subsection (b);and
(3) With respect to all creditors identified by theindividual or otherwise known by the provider to be creditors of theindividual, provide the individual with a list of:
(A) Creditors that the provider expects to participate in theplan and grant concessions;
(B) Creditors that the provider expects to participate in theplan but not grant concessions;
(C) Creditors that the provider expects not to participate inthe plan; and
(D) All other creditors.
(d) Before an individual assents to an agreement to engage ina plan, the provider shall inform the individual, in a record that containsnothing else, that is given separately, and that the individual may keepwhether or not the individual assents to the agreement:
(1) Of the name and business address of the provider;
(2) That plans are not suitable for all individuals and theindividual may ask the provider about other ways, including bankruptcy, to dealwith indebtedness;
(3) That establishment of a plan may adversely affect theindividual's credit rating or credit scores;
(4) That nonpayment of debt may lead creditors to increasefinance and other charges or undertake collection activity, includinglitigation;
(5) Unless it is not true, that the provider may receivecompensation from the creditors of the individual; and
(6) That, unless the individual is insolvent, if a creditorsettles for less than the full amount of the debt, the plan may result in thecreation of taxable income to the individual, even though the individual doesnot receive any money.
(e) If a provider may receive payments from an individual'screditors and the plan contemplates that the individual's creditors will reducefinance charges or fees for late payment, default, or delinquency, the providermay comply with subsection (d) by providing the following disclosure,surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals,and you may ask us to provide information about other ways, includingbankruptcy, to deal with your debts.
(2) Using a debt-management plan may hurt your credit ratingor credit scores.
(3) We may receive compensation for our services from yourcreditors.
Name and business address of provider
(f) If a provider will not receive payments from anindividual's creditors and the plan contemplates that the individual'screditors will reduce finance charges or fees for late payment, default, ordelinquency, a provider may comply with subsection (d) by providing thefollowing disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals,and you may ask us to provide information about other ways, includingbankruptcy, to deal with your debts.
(2) Using a debt-management plan may hurt your credit ratingor credit scores.
Name and business address of provider
(g) If a plan contemplates that creditors will settle debtsfor less than the full principal amount of debt owed, a provider may complywith subsection (d) by providing the following disclosure, surrounded by blacklines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Our program is not right for all individuals, and you mayask us to provide information about bankruptcy and other ways to deal with yourdebts.
(2) Nonpayment of your debts under our program may:
hurt your credit rating or credit scores;
lead your creditors to increase finance and other charges; and
lead your creditors to undertake activity, includinglawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxableincome to you, even though you will not actually receive any money.
§ 19-14.8-17 Prerequisites for providingdebt-management services. – (a) Before providing debt-management services, a registered provider shall givethe individual an itemized list of goods and services and the charges for each.The list must be clear and conspicuous, be in a record the individual may keepwhether or not the individual assents to an agreement, and describe the goodsand services the provider offers:
(1) Free of additional charge if the individual enters intoan agreement;
(2) For a charge if the individual does not enter into anagreement; and
(3) For a charge if the individual enters into an agreement,using the following terminology, as applicable, and format:
Set-up fee
dollar amount of fee
Monthly service fee
dollar amount of fee or method of determining amount
Settlement fee
dollar amount of fee or method of determining amount
Goods and services in addition to those provided inconnection with a plan:
(item) dollar amount or method of determining amount
(item) dollar amount or method of determining amount.
(b) A provider may not furnish debt-management servicesunless the provider, through the services of a certified counselor:
(1) Provides the individual with reasonable education aboutthe management of personal finance;
(2) Has prepared a financial analysis; and
(3) If the individual is to make regular, periodic payments:
(A) Has prepared a plan for the individual;
(B) Has made a determination, based on the provider'sanalysis of the information provided by the individual and otherwise availableto it, that the plan is suitable for the individual and the individual will beable to meet the payment obligations under the plan; and
(C) Believes that each creditor of the individual listed as aparticipating creditor in the plan will accept payment of the individual'sdebts as provided in the plan.
(c) Before an individual assents to an agreement to engage ina plan, a provider shall:
(1) Provide the individual with a copy of the analysis andplan required by subsection (b) in a record that identifies the provider andthat the individual may keep whether or not the individual assents to theagreement;
(2) Inform the individual of the availability, at theindividual's option, of assistance by a toll-free communication system or inperson to discuss the financial analysis and plan required by subsection (b);and
(3) With respect to all creditors identified by theindividual or otherwise known by the provider to be creditors of theindividual, provide the individual with a list of:
(A) Creditors that the provider expects to participate in theplan and grant concessions;
(B) Creditors that the provider expects to participate in theplan but not grant concessions;
(C) Creditors that the provider expects not to participate inthe plan; and
(D) All other creditors.
(d) Before an individual assents to an agreement to engage ina plan, the provider shall inform the individual, in a record that containsnothing else, that is given separately, and that the individual may keepwhether or not the individual assents to the agreement:
(1) Of the name and business address of the provider;
(2) That plans are not suitable for all individuals and theindividual may ask the provider about other ways, including bankruptcy, to dealwith indebtedness;
(3) That establishment of a plan may adversely affect theindividual's credit rating or credit scores;
(4) That nonpayment of debt may lead creditors to increasefinance and other charges or undertake collection activity, includinglitigation;
(5) Unless it is not true, that the provider may receivecompensation from the creditors of the individual; and
(6) That, unless the individual is insolvent, if a creditorsettles for less than the full amount of the debt, the plan may result in thecreation of taxable income to the individual, even though the individual doesnot receive any money.
(e) If a provider may receive payments from an individual'screditors and the plan contemplates that the individual's creditors will reducefinance charges or fees for late payment, default, or delinquency, the providermay comply with subsection (d) by providing the following disclosure,surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals,and you may ask us to provide information about other ways, includingbankruptcy, to deal with your debts.
(2) Using a debt-management plan may hurt your credit ratingor credit scores.
(3) We may receive compensation for our services from yourcreditors.
Name and business address of provider
(f) If a provider will not receive payments from anindividual's creditors and the plan contemplates that the individual'screditors will reduce finance charges or fees for late payment, default, ordelinquency, a provider may comply with subsection (d) by providing thefollowing disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals,and you may ask us to provide information about other ways, includingbankruptcy, to deal with your debts.
(2) Using a debt-management plan may hurt your credit ratingor credit scores.
Name and business address of provider
(g) If a plan contemplates that creditors will settle debtsfor less than the full principal amount of debt owed, a provider may complywith subsection (d) by providing the following disclosure, surrounded by blacklines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Our program is not right for all individuals, and you mayask us to provide information about bankruptcy and other ways to deal with yourdebts.
(2) Nonpayment of your debts under our program may:
hurt your credit rating or credit scores;
lead your creditors to increase finance and other charges; and
lead your creditors to undertake activity, includinglawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxableincome to you, even though you will not actually receive any money.
