Bill > HB1265

This bill extends the repealer date for the Mississippi Debt Management Services Act, which regulates companies that help consumers manage their debts, from July 1, 2026, to July 1, 2030. The Act, known as the Mississippi Debt Management Services Act, defines "debt management service" as receiving money from consumers to pay their creditors, arranging payment distributions, controlling consumer funds for payment purposes, acting as an intermediary to adjust debt terms, or improving a consumer's credit record. A "debt management service provider" is a person offering these services for a fee, with certain exceptions like licensed attorneys or non-profit credit counseling agencies. The bill also brings forward existing sections of the Act, which outline requirements for licensure, including financial responsibility and bonding, the proper handling of consumer funds in escrow accounts, the necessity of written agreements with consumers detailing services and fees, limitations on fees charged to consumers, reporting requirements to consumers and the Commissioner of Banking and Consumer Finance, and the powers of the Commissioner to investigate and enforce the Act. It also prohibits certain practices by debt management service providers, such as purchasing debt or lending money, and outlines penalties for violations, including license suspension or revocation. Finally, it includes provisions for third-party payment processors that handle consumer funds, requiring them to be bonded and subject to examination.

Business and Industry

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB1265.xml