Bill > SF586

This bill modifies existing laws related to debt management and debt settlement services in Minnesota. It introduces a new definition for "exempt attorney at law," specifying that such attorneys are licensed in Minnesota, have no business relationship with debt settlement providers related to those services, and offer debt settlement services only as a secondary part of representing a client. The bill also clarifies that these "exempt attorneys at law" are not considered debt settlement services providers themselves. Additionally, it updates the requirements for debt settlement services agreements, mandating that they be provided in the language in which the agreement was negotiated, regardless of whether the provider advertises in that language. The bill also revises how fees for debt settlement services are calculated, changing from a percentage of debt to a percentage of savings, and specifies that providers cannot collect fees until they have fully performed all agreed-upon services. Finally, it sets an effective date for certain provisions related to debt settlement service agreements entered into on or after August 1, 2013.