Chapter
04-579
2004 -- S 2333 SUBSTITUTE A
Enacted 07/14/04
A N A C T
RELATING
TO BUSINESSES AND PROFESSIONS -- CREDIT COUNSELORS
Introduced
By: Senators Walaska, Gallo, P Fogarty, F Caprio, and Alves
Date
Introduced: February 10, 2004
It
is enacted by the General Assembly as follows:
SECTION
1. Chapter 5-66 of the General Laws entitled "Debt Pooling" is hereby
repealed
in its entirety.
CHAPTER
5-66
Debt
Pooling
5-66-1.
Definitions. -- As used in this chapter, the following words and
phrases are
construed
as follows:
(1) "Bona fide nonprofit organization" means a corporation qualifying
as a 26 U.S.C.
section
501(c)(3) nonprofit organization, in the operation of which no member,
director, officer,
partner,
employee, agent, or other affiliated person profits financially other than
receiving
reasonable
salaries if applicable, and which provides debt pooling services for
individuals at no
cost
or a cost not exceeding that required to defray bona fide expenses in order to
provide the
services.
(2) "Debt pooling" means the receiving, as agent of a debtor, money
or evidences of
money
for the purpose of distributing the money or evidences of money among creditors
in full or
partial
payment of obligations of the debtor.
(3) "Director" means the director of business regulation, or his or
her designee.
5-66-2.
License required. -- With the exception of the Rhode Island
consumers' council,
a
state agency, no person, firm, or corporation, other than a bona fide nonprofit
organization,
engages
in the business of debt pooling in this state. No bona fide nonprofit
organization engages
in
the business of debt pooling in this state without a license issued in
accordance with the
provisions
of this chapter. Any bona fide nonprofit organization desiring to obtain a
license files
with
the department of business regulation an application, in writing, under oath,
providing any
information
that may be required by the director. The director may propound interrogatories
to an
applicant
for a license under this chapter relating to qualifications, residence,
prospective place of
business,
plan of business operation and any matters which are necessary in order to
protect the
public
and ascertain the qualifications of the applicant. The director may conduct an
inquiry or
investigation
to determine the applicant's fitness to be licensed or continue to be licensed.
Failure
by
the applicant to secure approval by the director does not preclude him or her
from applying as
many
times as he or she desires, but no application is made within six (6) months
subsequent to
the
date upon which the director denied the last application. A license issued
under this chapter is
effective
for two (2) years; provided, that the licensee remains in the business of debt
pooling,
unless
revoked prior to this by the director; provided, that nothing in this chapter
is construed to
apply
to an attorney at law admitted to the practice and in good standing before the
supreme court
of
this state while holding him or herself out as an attorney.
5-66-3.
Grounds for denial or revocation of license. -- (a) The director
may deny,
revoke,
or suspend any license under this chapter for cause upon ten (10) days' notice,
in writing,
sent
by certified mail to the principal place of business of the licensee or
residence of the
applicant,
stating the contemplated action and reason for the action but only after
allowing the
licensee
a reasonable opportunity to be heard. The director may deny, revoke, or suspend
any
license
for the following causes:
(1) Conviction of a crime involving moral turpitude;
(2) Violation of or inability to meet any provision of this chapter;
(3) Fraud or deceit or, if the licensee was not at the time of application and
is still not
entitled
to obtain a license under this chapter;
(4) The licensee no longer meets the requirements necessary to obtain a license
under
this
chapter;
(5) Maintenance of a continuous course of unfair conduct; or
(6) Insolvency, any past or present proceeding of bankruptcy, receivership or
assignment
for
the benefit of creditors by any licensee or applicant for a license under this
chapter.
(b) Any person aggrieved by an order or decision of the director may appeal to
the
superior
court for the county in which he or she resides within twenty (20) days after
the order or
decision
is mailed by certified mail to the applicant or licensee, as the case may be.
No order or
decision
is stayed on appeal except by order of the superior court.
5-66-4.
Bond required. -- The applicant files a bond with the director,
to be approved by
him
or her, in the sum equal to the amount of moneys received from debtors and on
hand at any
time
but not less than twenty thousand dollars ($20,000) with one or more insurers,
approved by
the
director, which does not exceed the sum in the aggregate. The bond runs to the
state for the
use
of the state and of any person or persons who may have a cause of action
against the obligor
of
bond under the provisions of this chapter. The bond is conditioned that the
obligor faithfully
conforms
to and abides by the provisions of this chapter and all of the rules and
regulations of the
director
made under this chapter, and pays to the state and any person or persons any
and all
moneys
that may become due or owing to the state or to the person or persons from the
obligor
under
and by virtue of this chapter.
5-66-5.
Penalty for violation. -- Any person, partnership, association,
or corporation
violating
any of the provisions of this chapter is, upon conviction, fined not more than
one
thousand
dollars ($1,000) for each offense.
5-66-6.
Posting of license -- Business of licensee. -- Each license or a
copy is posted
conspicuously
in each office of the licensee. No license is transferable or assignable. The
licensee
is
limited solely to the business of debt pooling, credit counseling, and credit
education.
5-66-7.
Separate bank account for benefit of debtors -- Books and records. --
Each
licensee
maintains a separate bank account for the benefit of debtors in which all
payments
received
from debtors for the benefit of creditors are deposited and in which all
payments remain
until
a remittance is made to either a debtor or a creditor. Every licensee maintains
books,
accounts,
and records which are open to the director to enable him or her to determine
whether
the
licensee is complying with the provisions of this chapter and with the
regulations of the
director.
Every licensee preserves the books, accounts, and records for at least seven
(7) years
after
making the final entry on any transaction record therein.
5-66-8.
Licensee's duties. -- Each licensee:
(1) Keeps complete and adequate records during the term of the contract with
the debtor
and
for a period of seven (7) years from the date of cancellation or completion of
the contract
with
each debtor, and these records contain complete information regarding the
contract,
extensions
of the contract, payments, disbursements and charges, and are open to
inspection by
the
director and his or her appointed agents during normal business hours;
(2) Makes remittances to creditors within a reasonable period of time after
receipt of any
funds,
less prorated fees and costs, unless the reasonable payment of one or more of
the debtor's
obligations
requires that funds be held for a longer period so as to accumulate a sum
certain; and
(3) Furnishes the debtor with a written statement of his or her account within
a
reasonable
time after the debtor requests it and within ninety (90) days after the
completion of the
pooling
of the debtor's debts, and furnishes the debtor a verbal accounting at any time
the debtor
requests
it during normal business hours.
5-66-9.
Prohibited acts. -- No licensee:
(1) Purchases from a creditor any obligation of a debtor;
(2) Operates as a collection agent and as a licensee as to the same debtor's
account;
(3) Executes any contract or agreement to be signed by the debtor unless the
contract or
agreement
is fully and completely filled in and finished;
(4) Pays any bonus or consideration to any person for the referral of a debtor
to his or her
business
or accepts or receives any bonus, commission or consideration for referring any
debtor
to
any person for any reason; or
(5) Advertises, displays, distributes, broadcasts, or televises his or her
services, rates, or
terms
in any manner where any false, misleading or deceptive statements or
representations are
made
with regard to the services to be performed by the licensee or the charges to
be made.
5-66-10.
[Repealed.] --
SECTION
2. Sections 19-14-1, 19-14-2, 19-14-3, 19-14-4 and 19-14-6 of the General
Laws
in Chapter 19-14 entitled "Licensed Activities" are hereby amended to
read as follows:
19-14-1.
Definitions. -- For purposes of this chapter and chapters 14.1, 14.2,
14.3, 14.4,
and
14.6 and
14.7 of this title:
(1) "Check" means any check, draft, money order, personal money
order, or other
instrument
for the transmission or payment of money. For the purposes of check cashing,
travelers
checks or foreign denomination instruments shall not be considered checks.
"Check
cashing"
means providing currency for checks;
(2) "Deliver" means to deliver a check to the first person who in
payment for the check
makes
or purports to make a remittance of or against the face amount of the check,
whether or not
the
deliverer also charges a fee in addition to the face amount, and whether or not
the deliverer
signs
the check;
(3) "Electronic money transfer" means receiving money for
transmission within the
United
States or to locations abroad by any means including, but not limited to, wire,
facsimile or
other
electronic transfer system;
(4) (i) "Lender" means any person who makes or funds a loan within
this state with the
person's
own funds, regardless of whether the person is the nominal mortgagee or
creditor on the
instrument
evidencing the loan;
(ii) A loan is made or funded within this state if any of the following
conditions exist:
(A) The loan is secured by real property located in this state;
(B) An application for a loan is taken by an employee, agent, or representative
of the
lender
within this state;
(C) The loan closes within this state; or
(D) The loan solicitation is done by an individual with a physical presence in
this state.
(iii) The term "lender" shall also include any person engaged in a
transaction whereby
the
person makes or funds a loan within this state using the proceeds of an advance
under a line
of
credit over which proceeds the person has dominion and control and for the
repayment of
which
the person is unconditionally liable. This transaction is not a table funding
transaction. A
person
is deemed to have dominion and control over the proceeds of an advance under a
line of
credit
used to fund a loan regardless of whether:
(A) The person may, contemporaneously with or shortly following the funding of
the
loan,
assign or deliver to the line of credit lender one or more loans funded by the
proceeds of an
advance
to the person under the line of credit;
(B) The proceeds of an advance are delivered directly to the settlement agent
by the line
of
credit lender, unless the settlement agent is the agent of the line of credit
lender;
(C) One or more loans funded by the proceeds of an advance under the line of
credit is
purchased
by the line of credit lender; or
(D) Under the circumstances as set forth in regulations adopted by the director
or the
director's
designee pursuant to this chapter;
(5) "Licensee" means an entity licensed under this chapter;
(6) "Loan" means any advance of money or credit including, but not
limited to:
(i) Loans secured by mortgages;
(ii) Insurance premium finance agreements;
(iii) The purchase or acquisition of retail installment contracts or advances
to the holders
of
those contracts;
(iv) Educational loans;
(v) Any other advance of money; or
(vi) Any transaction such as those commonly known as "pay day loans,"
"pay day
advances,"
or "deferred presentment loans," in which a cash advance is made to a
customer in
exchange
for the customer's personal check, or in exchange for the customer's
authorization to
debit
the customer's deposit account, and where the parties agree either that the
check will not be
cashed
or deposited, or that customer's deposit account will not be debited, until a
designated
future
date.
(7) "Loan broker" means any person who, for compensation or gain, or
in the expectation
of
compensation or gain, either directly or indirectly, solicits, processes,
negotiates, places or sells
a
loan within this state for others in the primary market, or offers to do so. A
loan broker shall
also
mean any person who is the nominal mortgagee or creditor in a table funding
transaction. A
loan
is brokered within this state if any of the following conditions exist:
(i) The loan is secured by real property located in this state;
(ii) An application for a loan is taken by an employee, agent or representative
of the loan
broker
within this state;
(iii) The loan closes within this state; or
(iv) The loan solicitation is done by an individual with a physical presence in
this state.
(8) "Personal money order" means any instrument for the transmission
or payment of
money
in relation to which the purchaser or remitter appoints or purports to appoint
the seller as
his
or her agent for the receipt, transmission, or handling of money, whether the
instrument is
signed
by the seller or by the purchaser or remitter or some other person;
(9) "Primary market" means the market in which loans are made to
borrowers by lenders,
whether
or not through a loan broker or other conduit;
(10) "Principal owner" means any person who owns, controls, votes or
has a beneficial
interest
in, directly or indirectly, ten percent (10%) or more of the outstanding
capital stock of a
licensee;
(11) "Sell" means to sell, to issue, or to deliver a check;
(12) "Small loan" means a loan of less than five thousand dollars
($5,000), not secured
by
real estate, made pursuant to the provisions of chapter 14.2 of this title;
(13) "Small loan lender" means a lender engaged in the business of
making small loans
within
this state;
(14) "Table funding transaction" means a transaction in which there
is a
contemporaneous
advance of funds by a lender and an assignment by the mortgagee or creditor of
the
loan to the lender;
(15) "Check casher" means a person or entity that, for compensation,
engages, in whole
or in
part, in the business of cashing checks;
(16) "Deferred deposit transaction" means any transaction such as
those commonly
known
as "pay-day loans," "pay-day advances," or "deferred
presentment loans" in which a cash
advance
is made to a customer in exchange for the customer's personal check or in
exchange for
the
customer's authorization to debit the customer's deposit account and where the
parties agree
either
that the check will not be cashed or deposited, or that the customer's deposit
account will
not
be debited until a designated future date;
(17) "Insurance premium finance agreement" means an agreement by
which an insured,
or
prospective insured, promises to pay to an insurance premium finance company
the amount
advanced
or to be advanced, under the agreement to an insurer or to an insurance
producer, in
payment
of a premium or premiums on an insurance contract or contracts, together with
interest
and a
service charge, as authorized and limited by this title;
(18) "Insurance premium finance company" means a person engaged in
the business of
making
insurance premium finance agreements or acquiring insurance premium finance
agreements
from other insurance premium finance companies; and
(19) "Simple interest" means interest computed on the principal
balance outstanding
immediately
prior to a payment for the actual number of days between payments made on a
loan
over
the life of a loan. ;
(20)
“Credit counseling service” means a person or corporation that provides DMP
service
to consumers, usually for a fee, contribution, or other consideration;
(21)
“Debt Management plan (DMP)” means a program whereby money is received from
a
consumer by the credit counseling service for the purpose of distributing that
money to one or
more
creditors of the consumer in full or partial payment of the consumer’s
obligation;
(22)
“Nonprofit organization” means a corporation qualifying as a 26 U.S.C. section
50
(c)(3)
nonprofit organization, in the operation of which no member, director, officer,
partner,
employee,
agent, or other affiliated person profits financially other than receiving
reasonable
salaries
if applicable, and which provides debt counseling services for individuals at
no cost or a
cost
not exceeding that required to defray bona fide expenses in order to provide
the services; and
(23)
“Joint control agent” means any person engaged in the business of receiving
money
or
other property for disbursal or use in payment of the cost of labor, material
services, permits,
fees,
or other items of expense incurred in the construction of improvements upon
real property.
19-14-2.
Licenses required. -- No person shall engage within this state in the
business
of:
(1) making or funding loans or acting as a lender or small loan lender; (2)
brokering loans or
acting
as a loan broker; (3) selling checks for a fee or other consideration; (4)
cashing checks for
a fee
or other consideration which includes any premium charged for the sale of goods
in excess
of
the cash price of the goods; or (5) providing electronic money transfers
for a fee or other
consideration;
or (6) providing debt management plan(s) without first obtaining a license
from the
director
or the director's designee. The licensing requirement for any person
providing debt
management
plans shall apply to all persons, without regard for state of incorporation or
a
physical
presence in this state, who initiate or service debt management plans for
residents of this
state. Special exemptions from
licensing for each activity are contained in other chapters in this
title.
19-14-3.
Application for license. – (a) Application for a license shall
be made in writing
under
oath in a form to be provided by the director or the director's designee. The
applicant at the
time
of making application shall pay to the director or the director's designee the
sum of one half
(1/2)
of the annual license fee as a fee for investigating the application. If the
application for
license
is approved, the applicant shall pay a fee equal to the annual license fee as
provided in this
chapter.
The license shall be continuous and the license fee shall cover the period
through March
31 of
each year. Any application approved after January 1 of any given year shall pay
one half
(1/2)
of the annual license fee for the period ending March 31 of that year.
(b)
Only a nonprofit organization may apply for a license to provide debt
management
plan(s)
under this title. Any nonprofit organization desiring to obtain a license shall
file with the
department
of business regulation an application in writing under oath providing the
following
information:
(1)
Proof of nonprofit status as determined by being designated under the United
States
Internal
Revenue Code as Section 501 (-c-)(-3-).
(2)
Proof of a separate trust account with a federally-insured financial
institution for the
handling
of client funds.
(3)
Proof of counselor certification through a bona fide third-party certification
provider
that
demonstrates the competence of counselors providing consumer assistance.
(4)
Proof of a board of directors, a majority of which does not include individuals
for
whom
such a position could pose a conflict with the mission of the organization,
such as creditors
and
creditors’ representatives: bankruptcy attorneys, and others who would have a
direct stake in
the
outcome of the counseling process. The board must have a working majority that
is not
comprised
of officers of the company or their relatives.
(5)
Proof of agency accreditation provided by a bona fide third-party accreditation
body
such
as the council on accreditation or as approved by the director. Such
accreditation shall
include
sector certification that insures compliance to industry standards and best
practices and
corporate
governance.
(6)
A copy of an annual audit by an independent certified public accountant, which
such
audit
taking place within six (6) months of the close of the agency’s fiscal year.
(c)
The director shall require a background report prepared by an independent
licensed
private
investigation firm for every applicant for a license to engage in the business
of providing
debt
management plan(s), including said applicant’s principal owners and officers.
The cost of
such
report shall be borne by the applicant. The director may conduct an additional
inquiry or
investigation
to determine the applicant’s fitness to be licensed or continue to be licensed.
(d)
Any license issued under the provisions of former section 5-66-2 shall remain
in full
force
and effect until its expiration and shall be subject to the provisions of this
chapter.
19-14-4.
Annual fee. -- (a) Each licensee shall pay an annual license fee as
follows:
(1) Each small loan lender license and each branch certificate, the sum of five
hundred
fifty
dollars ($550);
(2) Each loan broker license and each branch certificate, the sum of five
hundred fifty
dollars
($550);
(3) Each lender license and each branch certificate, the sum of one thousand
one hundred
dollars
($1,100);
(4) Each sale of checks license, the sum of three hundred dollars ($300);
(5) Each check cashing license, the sum of three hundred dollars ($300); and
(6) Each electronic money transfer license, the sum of three hundred dollars
($300). ;
and
(7)
Each debt management plan license, the sum of two hundred dollars ($200).
(b) Any licensee who shall not pay the annual fee by March 31 of each year
shall be
subject
to a daily penalty of twenty-five dollars ($25) per day, subject to a maximum
of seven
hundred
fifty dollars ($750). The penalty shall be paid to the director to and for the
use of the
state.
The penalty may be waived for good cause by the director or the director's
designee, upon
written
request.
19-14-6.
Bond of applicant. -- (a) An applicant for any license shall file with
the director
or
the director's designee a bond to be approved by him or her in which the
applicant shall be the
obligor.
(b) The amount of the bond shall be as follows:
(1) Small loan lenders, the sum of ten thousand dollars ($10,000);
(2) Loan brokers, the sum of ten thousand dollars ($10,000);
(3) Lenders, the sum of twenty-five thousand dollars ($25,000);
(4) Sale of checks and electronic money transfer licensees, the sum of fifty
thousand
dollars
($50,000) subject to a maximum of one hundred and fifty thousand dollars
($150,000)
when
aggregated with agent locations;
(5) Check cashing licensees who accept checks for collection with deferred
payment, the
sum
of fifty thousand dollars ($50,000) subject to a maximum of one hundred and
fifty thousand
dollars
($150,000) when aggregated with agent locations;
(6) Foreign exchange licensees, the sum of ten thousand dollars ($10,000); or
(7) Each branch or agent location of a licensee, the sum of five thousand
dollars
($5,000).
; or
(8)
Each debt management plan licensee, the sum equal to the amount of moneys
received
from debtors and on hand at any time, but not less than twenty thousand dollars
($20,000)
with one or more insurers, approved by the director, which does not exceed the
sum in
the
aggregate.
(c) The bond shall run to the state for the use of the state and of any person
who may
have
cause of action against the obligor of the bond under the provisions of this
title. The bond
shall
be conditioned upon the obligor faithfully conforming to and abiding by the
provisions of
this
title and of all rules and regulations lawfully made, and the obligor will pay
to the state and to
any
person any and all money that may become due or owing to the state or to the
person from
the
obligor under and by virtue of the provisions of this title.
(d) The provisions of subsection (b)(6) of this section shall not apply to any
foreign
exchange
business holding a valid electronic money transfer license issued pursuant to
section
19-14-1
et seq., that has filed with the division of banking the bond required by
subsections (b)(4)
and
(b)(7) of this section.
(e) The bond shall remain in force and effect until the surety is released from
liability by
the
director or the director's designee or until the bond is cancelled by the
surety. The surety may
cancel
the bond and be released from further liability under the bond upon receipt by
the director
or
the director's designee of written notice of the cancellation of the bond at
least thirty (30) days
in
advance of the cancellation of the bond. The cancellation shall not affect any
liability incurred
or
accrued under the bond before the termination of the thirty (30) day period.
Upon receipt of
any
notice of cancellation, the director shall provide written notice to the
licensee.
SECTION
3. Title 19 of the General Laws entitled "Financial Institutions" is
hereby
amended
by adding thereto the following chapter:
CHAPTER
14.7
NONPROFIT
CREDIT COUNSELING SERVICES ACT
19-14.7-1.
Short title. -- This chapter shall be known as the “Nonprofit Credit
Counseling
Services Act.”
19-14.7-2.
Special exemptions. -- No license to provide debt management plans
shall be
required
of any:
(a)
Regulated institutions and banks or credit unions organized under the laws of
the
United
States, or banks or credit unions organized under the laws of any state within
the United
States
if the laws of the state in which the bank or credit union is organized
authorizes under
conditions
not substantially more restrictive than those imposed by the laws of this
state, as
determined
by the director or the director’s designee, a financial institution or credit
union to
engage
in the business of originating or brokering loans in the other state; no bank
or credit union
duly
organized under the laws of another state within the United States may receive
deposits, pay
checks
or lend money from an established location within this state without having
obtained the
approval
of the director or the director’s designee pursuant to chapter 19-7 of the
general laws;
(b)
Person licensed to practice law in this state when services are rendered in the
course
of
his or her practice as an attorney and fees for such services are not in excess
of those stated in
this
chapter;
(c)
Transaction in which money or other property is paid through a “joint control
agent”;
(d)
Merchant-owned credit or creditors association;
(e)
A certified public accountant (CPA), when services are rendered in the course
of his
or
her practice as a CPA and fees for such services are not in excess of those
stated in this
chapter.
19-14.7-3.
Licensee’s duties. -- (a) All debt management plans must be
evidenced by a
written
agreement between the credit counseling agency and the consumer, clearly
acknowledged
by
both parties. A copy of the agreement must be provided to the consumer.
(b)
All debt management plan agreements must contain the following:
(1)
the name and address of both the consumer and the credit counseling agency;
(2)
a full description of all services to be performed for the consumer;
(3)
a clear indication of the costs to the consumer, including contributions or
fees,
highlighted
in bold type;
(4)
a statement that the agreement may be terminated for any reason by the consumer
and
that
the consumer has no obligation to continue the arrangement unless satisfied
with the services
provided;
(5)
an indication of how to resolve disputes under the agreement, including the
telephone
number
of the department of business regulation;
(6)
a complete list of the consumer’s and agency’s obligations that are subject to
the
agreement;
and
(7)
a budget analysis showing, as a minimum, sources of income, detailed monthly
expenses,
and debt payments.
(c)
Licensees shall:
(1)
Maintain complete and adequate records during the term of the contract with the
consumer
and for a period of seven (7) years from the date of cancellation or completion
of the
contract
with each debtor. These records shall contain complete information regarding
the
contract,
extensions of the contract, payments, disbursements and charges, and shall be
open to
inspection
by the director and his or her appointed agents during normal business hours;
(2)
Make remittances to creditors within a reasonable period of time after receipt
of any
funds,
less prorated fees and costs, unless the reasonable payment of one or more of
the debtor’s
obligations
requires that funds be held for a longer period so as to accumulate a sum
certain;
(3)
Furnish the consumer with a written statement of his or her account on a
regular basis,
as
established by the director and within a reasonable time after the consumer
requests it and
within
ninety (90) days after the completion of the credit counseling agreement, and
furnish the
consumer
a verbal accounting at any time the consumer requests it during normal business
hours;
and
(4)
Keep the cost to the consumer for the credit counseling services as low as
possible. In
no
event, shall the cost to the consumer, including voluntary contributions,
exceed those set by
regulation.
All material contracts or fee for service arrangements with any third-party out
sources,
companies,
or vendors must be disclosed to the director. No one may be denied access to
the debt
management
plans because of an inability to pay a fee.
19-14.7-4.
Prohibited acts. -- No licensee shall:
(a)
Purchase from a creditor any obligation of a consumer;
(b)
Operate as a collection agent and as a licensee for the same consumer’s
account;
(c)
Execute any contract or agreement to be signed by the consumer, unless the
contract
or
agreement is completed in full;
(d)
Pay any bonus or consideration to any person for the referral of a debtor to
his or her
business
or accept or receive any bonus, commission, or consideration for referring any
consumer
to
any person for any reason;
(e)
Advertise, display, distribute, broadcast, or televise his or her services,
rates, or terms
in
any manner where any false, misleading, or deceptive statements or
representations are made
with
regard to the services to be performed by the licensee or the charges to be
made;
(f)
Lend money or provide credit to any consumer;
(g)
Obtain a mortgage or any other security interest in property of a consumer;
(h)
Pay any incentive to its employees for the executing of any debt management
plan
contracts
or receive any undisclosed compensation, bonds, commissions, or compensation
for
referring
any consumer for any reason; or
(i)
Enter into any contract or fee for service arrangement with any company or
vendor
owned,
controlled, or affiliated with an officer or director or relative of an officer
or director that
materially
personally benefits, enriches, or inures benefit to an officer or director of
the nonprofit
credit
counseling agency.
SECTION
4. This act shall take effect upon passage.
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LC00895/SUB
A/3
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