§ 19-14.8-23 - Fees and other charges.
SECTION 19-14.8-23
§ 19-14.8-23 Fees and other charges.– (a) A provider may not impose directly or indirectly a fee or other charge onan individual or receive money from or on behalf of an individual fordebt-management services except as permitted by this section.
(b) A provider may not impose charges or receive payment fordebt-management services until the provider and the individual have signed anagreement that complies with §§ 19-14.8-19 and 19-14.8-28.
(c) If an individual assents to an agreement, a provider maynot impose a fee or other charge for educational or counseling services, or thelike, except as otherwise provided in this subsection and subsection19-14.8-28(d). The director may authorize a provider to charge a fee based onthe nature and extent of the educational or counseling services furnished bythe provider.
(d) Subject to adjustment of dollar amounts pursuant tosubsection 19-14.8-32(f), the following rules apply:
(1) If an individual assents to a plan that contemplates thatcreditors will reduce finance charges or fees for late payment, default, ordelinquency, the provider may charge:
(A) A fee not exceeding fifty dollars ($50.00) forconsultation, obtaining a credit report, setting up an account, and the like;and
(B) A monthly service fee, not to exceed ten dollars ($10.00)times the number of creditors remaining in a plan at the time the fee isassessed, but not more than fifty dollars ($50) in any month.
(2) If an individual assents to a plan that contemplates thatcreditors will settle debts for less than the principal amount of the debt, aprovider may charge:
(A) Subject to subsection 19-14.8-19(d), a fee forconsultation, obtaining a credit report, setting up an account, and the like,in an amount not exceeding the lesser of four hundred dollars ($400) and fourpercent (4%) of the debt in the plan at the inception of the plan; and
(B) A monthly service fee, not to exceed ten dollars ($10)times the number of creditors remaining in a plan at the time the fee isassessed, but not more than fifty dollars ($50) in any month.
(3) A provider may not impose or receive fees under bothparagraphs (1) and (2) of this section.
(4) Except as otherwise provided in subsection 19-14.8-28(d),if an individual does not assent to an agreement, a provider may receive foreducational and counseling services it provides to the individual a fee notexceeding one hundred dollars ($100) or, with the approval of the director, alarger fee. The director may approve a fee larger than one hundred ($100) ifthe nature and extent of the educational and counseling services warrant thelarger fee.
(e) If, before the expiration of ninety (90) days after thecompletion or termination of educational or counseling services, an individualassents to an agreement, the provider shall refund to the individual any feepaid pursuant to subsection (d)(4) of this section.
(f) Except as otherwise provided in subsections (c) and (d)of this section, if a plan contemplates that creditors will settle anindividual's debts for less than the principal amount of the debt, compensationfor services in connection with settling a debt may not exceed, with respect toeach debt:
(1) Thirty percent (30%) of the excess of the principalamount of the debt over the amount paid the creditor pursuant to the plan less;
(2) To the extent it has not been credited against an earliersettlement fee:
(A) The fee charged pursuant to subdivision (d)(2)(A) of thissection; and
(B) The aggregate of fees charged pursuant to subdivision(d)(2)(B) of this section.
(g) Subject to adjustment of the dollar amount pursuant tosubsection 19-14.8-32(f), if a payment to a provider by an individual underthis chapter is dishonored, a provider may impose a reasonable charge on theindividual, not to exceed the lesser of twenty-five dollars ($25) and theamount permitted by law other than this chapter.