Bill > S147

This bill amends Chapter 180 of the General Laws to clarify and regulate credit counseling services, particularly those involving 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 to reduce the amount owed on a debt, all of which may involve a fee. The bill also defines an "exempt attorney" as a licensed lawyer who negotiates settlements for pending litigation, disputes over debt amounts or legality, or assists with bankruptcy filings, or negotiates debt as part of broader legal representation. Crucially, the bill prohibits anyone other than an exempt attorney or a registered nonprofit charitable corporation from offering services that involve distributing income to creditors or negotiating debt reductions. It also mandates that such nonprofit corporations cannot practice law and must refer individuals needing legal advice to appropriate legal resources.