summary
Introduced
02/03/2026
02/03/2026
In Committee
03/04/2026
03/04/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Debt Management Service Act. Provides that every applicant for a license to engage in the debt management service business in the State shall submit to the Secretary, at the time of the application for a license, a bond to be approved by the Secretary in which the applicant shall be the obligor, in the sum of $50,000 (rather than $25,000) or the specified amount. In provisions concerning fees or penalties that may be charged by a debt management service provider, permits the charging of additional fees at the completion of the initial counseling services, which shall not exceed: (A) 15% of the amount disbursed monthly to creditors or $75, whichever is less, if there are fewer than 6 creditors enrolled in the debt management plan; or (B) 15% of the amount disbursed monthly to creditors or $100, whichever is less, if there are 6 or more creditors enrolled in the debt management plan.
AI Summary
This bill amends the Debt Management Service Act to increase the required bond amount for applicants seeking a license to operate a debt management service business from $25,000 to $50,000, ensuring greater financial protection for consumers. Additionally, it modifies the fee structure for debt management service providers by allowing for additional fees after initial counseling is completed, with these fees capped at either 15% of the monthly amount disbursed to creditors or a set amount, whichever is less; specifically, the cap is $75 if fewer than six creditors are involved in the debt management plan, and $100 if six or more creditors are involved. Debt management services help individuals manage and repay their debts through a structured plan.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Assigned to Financial Institutions and Licensing Committee (on 03/04/2026)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...