50-1126. Same; fees charged by registrant; when allowed.
50-1126
50-1126. Same; fees charged by registrant; whenallowed.(a) No registrant shall impose any fees or other charges ona consumer, orreceiveany funds or other payments from a consumer or another person on behalf of aconsumer:
(1) Except as provided in paragraph (5) of subsection (b), until after theregistrant and consumerhave executed a debt management services agreement; and
(2) except as allowed under this section, or as permitted by rule andregulation adopted by thecommissioner.
(b) A registrant may:
(1) Charge a one-time consultation fee not exceeding $50. The cost of acredit report on aconsumer shall be paid from the consultation fee paid by the consumer;
(2) charge and collectmonthly the lesser of a total maintenance fee of $20 per month, or $5 per monthfor each creditor of a consumer that is listed in the debt management servicesagreement between theregistrant and the consumer;
(3) collect from or on behalfof a consumer the funds for disbursementto creditors that the consumerhas agreed to pay to the registrant under the debt management servicesagreement;
(4) accept a voluntarycontribution from a consumer for a debtmanagement service provided by theregistrant to the consumer if the aggregate amount of the voluntarycontribution and any other feesreceived by the registrant from the consumer does not exceed the total amountthe registrant is authorizedto charge the consumer under paragraphs (1) and (2) of this subsection;
(5) charge the consumer, if provided to the consumer, a fee, not to exceed$50, fora counseling session,an educational program, or materials and supplies if the consumer does notenter into a debt managementservices agreement with the registrant; and
(6) accept fee payments from a consumer's creditors for debt managementservices rendered to aconsumer, provided the consumer's creditor does not assess the fee to theconsumer.
(c) No registrant shall:
(1) Charge a fee to a consumer, if the consumer enters into a debt managementservices agreement withthe registrant, to:
(A) Prepare a financial analysis or an initial budget plan for the consumer;
(B) counsel a consumer about debt management;
(C) provide a consumer with the consumer education program described in theregistrant's application to engage in business as a credit servicesorganization; or
(D) rescind a debt management services agreement.
(2) Require a voluntary contribution from a consumer for any service providedby the registrant to the consumer.
(3) As a condition of entering into a debt management services agreement,require a consumer topurchase for a fee a counseling session, an educational program or materialsand supplies.
(d) If a registrant imposes any fee or other charge or receives any funds orother payments notauthorized under this section, except as a result of an accidental and bonafide error:
(1) The debt management services agreement shall be void; and
(2) the registrant shall return the amount of the unauthorized fees, charges,funds or payments to theconsumer.
History: L. 2004, ch. 22, § 11; July 1.