Bill > H803

This bill amends Chapter 180 of the General Laws to clarify and regulate credit counseling services, particularly those related to debt settlement. It defines "credit counseling services" broadly to include providing financial advice, creating plans for income distribution to creditors, offering educational services about credit, and assisting individuals in negotiating debts for less than the outstanding amount, especially when a fee is involved. The bill also defines an "exempt attorney" as a licensed lawyer who negotiates debt settlements in specific contexts, such as pending litigation, disputed debts, or as part of bankruptcy proceedings (referencing Title 11 of the United States Code). Crucially, the bill prohibits anyone other than an exempt attorney or a qualifying nonprofit charitable corporation from offering credit counseling services that involve distributing income to creditors or negotiating debt settlements for less than the owed amount. It also mandates that such corporations cannot practice law and must refer individuals needing legal advice to appropriate legal resources.