425.010. Definitions.
Definitions.
425.010. As used in this chapter, the following terms mean:
(1) "Debt adjuster", a person who acts or offers to act for aconsideration as an intermediary between a debtor and his creditors for thepurpose of settling, compounding, or in any wise altering the terms ofpayment of any debts of the debtor; and to that end the person receivesmoney or other property from the debtor, or on behalf of the debtor, forpayment to the debtor's credit by the person, or distribution among, thecreditors by the person. This definition shall only apply to a person whocollects funds from a debtor and delivers such funds to the debtor'screditors;
(2) "Debt management plan" or "DMP", a written agreement or contractbetween a debt adjuster and a debtor whereby the debt adjuster agrees toprovide its services as such to the debtor in return for payment by thedebtor of no more than reasonable consideration;
(3) "Debtor", an individual or individuals jointly and severally orjointly or severally indebted;
(4) "Reasonable consideration", a fee or contribution to cover thecost of administering a debt management plan, not to exceed:
(a) Fifty dollars for an initial or set-up fee or charge forestablishing a DMP; and
(b) The greater of thirty-five dollars per month or eight percent ofthe amount distributed monthly to creditors under such DMP.
(L. 1963 p. 646 § 1, A.L. 2007 H.B. 329)