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Senate Bill 0328


Senate Bill 0328

ARCHIVE (2013)

Latest Information

 

DIGEST OF INTRODUCED BILL


Nonprofit debt management companies. Defines "bona fide nonprofit organization" (bona fide nonprofit) for purposes of the statute governing licensed debt management companies (licensees). Requires the department of financial institutions (DFI) to: (1) adopt separate rules for the licensure and regulation of bona fide nonprofits under the statute; and (2) consider certain factors in adopting the rules. Prohibits the DFI from requiring a bona fide nonprofit that maintains a bond with the Executive Office for United States Trustees (EOUST) to execute a bond under the statute. For a bona fide nonprofit that does not maintain a bond with the EOUST, provides that the DFI must: (1) consider the financial ability of the bona fide nonprofit to execute the bond required under the statute; and (2) base the amount of the bond on the bona fide nonprofit's revenue and capital. Removes provisions allowing licensees to charge a close-out fee upon termination of a debt management agreement (agreement) with a debtor. Changes the time frames in which a licensee must do the following: (1) Notify a debtor of a creditor's decision to reject or withdraw from a debt management plan (plan). (2) Notify all creditors in a plan about a cancellation by the debtor of the agreement. (3) Upon termination of an agreement, return to the debtor any money held in trust for the debtor. Changes the time after which an agreement is considered canceled by a debtor for nonpayment from 60 days to 90 days after the date a payment is due and not paid. Provides that a bona fide nonprofit is not required to prepare a written budget analysis before entering into an agreement with a debtor if certain conditions are met. Provides that a licensee may charge a debtor the authorized set up fee before a payment has been
    Current Status:
     In Committee - first House
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