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Bill > H1073


MA H1073

Relative to the licensing and supervision of debt management services in the Commonwealth


summary

Introduced
01/22/2019
In Committee
01/22/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

191st General Court

Bill Summary

Relative to licensing and supervision of debt management services by the Division of Banks. Financial Services.

AI Summary

This bill proposes to establish a new chapter, Chapter 255G, to regulate the licensing and supervision of debt management services in the Commonwealth. The key provisions are: - Requiring providers of debt management services, other than certain exempt entities, to obtain a license from the Commissioner of Banks before engaging in or advertising for such services in the Commonwealth. - Establishing application, financial responsibility, and other requirements for obtaining and maintaining a license. - Authorizing the Commissioner to examine licensees' books and records, suspend or revoke licenses for violations, and impose fines up to $5,000 per violation. - Prohibiting certain practices by licensees, such as taking a power of attorney to settle debts, making misleading representations, and commingling consumer funds with their own. - Requiring licensees to provide consumers with detailed account statements and disclosures about the debt management services. - Allowing consumers to terminate agreements without penalty and establishing requirements for licensees to refund fees upon termination. - Establishing criminal penalties for violations of the licensing requirement.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Reporting date extended to Tuesday December 29, 2020, pending concurrence (on 06/18/2020)

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