State Codes and Statutes
Statutes > Utah > Title-13 > Chapter-42 > 13-42-11713-42-117. Prerequisites for providing debt-management services.
(1) Before providing debt-management services, a registered provider shall give theindividual an itemized list of goods and services and the charges for each. The list shall be clearand conspicuous, be in a record the individual may keep whether or not the individual assents toan agreement, and describe the goods and services the provider offers:
(a) free of additional charge if the individual enters into an agreement;
(b) for a charge if the individual does not enter into an agreement; and
(c) for a charge if the individual enters into an agreement, using the followingterminology, 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 in connection with a plan:
_____________ ____________________________________________
(item) dollar amount or method of determining amount
_____________ ____________________________________________
(item) dollar amount or method of determining amount.
(2) A provider may not furnish debt-management services unless the provider, throughthe services of a certified counselor:
(a) provides the individual with reasonable education about the management of personalfinance;
(b) has prepared a financial analysis; and
(c) if the individual is to make regular, periodic payments to a creditor or a provider:
(i) has prepared a plan for the individual;
(ii) has made a determination, based on the provider's analysis of the informationprovided by the individual and otherwise available to it, that the plan is suitable for the individualand the individual will be able to meet the payment obligations under the plan; and
(iii) believes that each creditor of the individual listed as a participating creditor in theplan will accept payment of the individual's debts as provided in the plan.
(3) Before an individual assents to an agreement to engage in a plan, a provider shall:
(a) provide the individual with a copy of the analysis and plan required by Subsection (2)in a record that identifies the provider and that the individual may keep whether or not theindividual assents to the agreement;
(b) inform the individual of the availability, at the individual's option, of assistance by atoll-free communication system or in person to discuss the financial analysis and plan required bySubsection (2); and
(c) with respect to all creditors identified by the individual or otherwise known by theprovider to be creditors of the individual, provide the individual with a list of:
(i) creditors that the provider expects to participate in the plan and grant concessions;
(ii) creditors that the provider expects to participate in the plan but not grant concessions;
(iii) creditors that the provider expects not to participate in the plan; and
(iv) all other creditors.
(4) Before an individual assents to an agreement, the provider shall inform theindividual, in a record that contains nothing else, that is given separately, and that the individualmay keep whether or not the individual assents to the agreement:
(a) of the name and business address of the provider;
(b) that plans are not suitable for all individuals and the individual may ask the providerabout other ways, including bankruptcy, to deal with indebtedness;
(c) that establishment of a plan may adversely affect the individual's credit rating orcredit scores;
(d) that nonpayment of debt may lead creditors to increase finance and other charges orundertake collection activity, including litigation;
(e) unless it is not true, that the provider may receive compensation from the creditors ofthe individual; and
(f) that, unless the individual is insolvent, if a creditor settles for less than the full amountof the debt, the plan may result in the creation of taxable income to the individual, even thoughthe individual does not receive any money.
(5) If a provider may receive payments from an individual's creditors and the plancontemplates that the individual's creditors will reduce finance charges or fees for late payment,default, or delinquency, the provider may comply with Subsection (4) by providing the followingdisclosure, surrounded by black lines:
(1) Debt-management plans are not right for all individuals, and you may ask us toprovide information about other ways, including bankruptcy, to deal with your debts.
(2) Using a debt-management plan may make it harder for you to obtain credit.
(3) We may receive compensation for our services from your creditors.
(6) If a provider will not receive payments from an individual's creditors and the plancontemplates that the individual's creditors will reduce finance charges or fees for late payment,default, or delinquency, a provider may comply with Subsection (4) by providing the followingdisclosure, surrounded by black lines:
(1) Debt-management plans are not right for all individuals, and you may ask us toprovide information about other ways, including bankruptcy, to deal with your debts.
(2) Using a debt-management plan may make it harder for you to obtain credit.
(7) If an agreement contemplates that creditors will settle debts for less than the fullprincipal amount of debt owed, a provider may comply with Subsection (4) by providing thefollowing disclosure, surrounded by black lines:
(1) Our program is not right for all individuals, and you may ask us to provideinformation about bankruptcy and other ways to deal with your debts.
(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, including lawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxable income to you, eventhough you will not actually receive any money.
Amended by Chapter 378, 2010 General Session
