Bill > HF2326

This bill modifies regulations for debt management programs, requiring licensees to maintain a dedicated account for debtor payments instead of a trust account, and removing a provision that prevented licensees from receiving third-party consideration. It also clarifies that if a debtor fails to complete payments under a debt settlement agreement, the licensee must attempt to renegotiate the debt and cannot charge an additional fee for further services on that specific debt, though they can still collect outstanding fees for the initial contract. Furthermore, the bill establishes that fees for debt management services can only be charged after a debt has been successfully renegotiated or settled, with at least one payment made by the debtor, and sets a cap of thirty percent of the total enrolled debt for all fees. It also mandates that fees for debts with multiple payments to creditors must be collected incrementally over at least a quarter of the debtor's repayment period for that debt. Finally, it exempts licensed debt management professionals from certain other regulations when acting within their scope of business.