State Money Transmitter Law Compliance for Debt Relief Operations. It’s Free to Attend.

National Policy Group will host a complimentary two-part Webinar on Tuesday, May 10 and May 17, 2011 at 3:00 PM (ET) on the subject of “State Money Transmitter Law Compliance for Debt Relief Operations”.“

This is a unique program for debt relief agencies and related organizations that receive and disburse consumer funds to understand their compliance obligations as transmitters of money”, said Mark Guimond, President of National Policy Group in Washington, D.C. “This is critical information for agencies and their third-party servicers that is not available through any other source.”

Mark Guimond has been part of the crafting, amending and enactment of more than 30 state bills and rules related to the debt relief industries. One of Guimond’s most visible recent federal accomplishments was the deferred enforcement of the Telemarketing Sales Rule (TSR) for tax debt resolution service providers.

“Many debt relief agencies receive money from consumers and transmit those funds to a creditor for the purpose of paying the consumers’ bills, invoices, or accounts. This is, generally, the very definition of a money transmitter”, added Guimond.The Webinars will review the official state responses to help resolve the question of the need for debt relief agencies to obtain state money transmitter licenses. The Webinars will disclose the origin of the following statements in addition to many more:

  • “…credit counseling agencies would be subject to licensing as a money transmitter under the Act…”
  • “…the [department] sees no reason to impose additional regulation on the credit counseling industry by also licensing under the [money transmitter] Act.”
  • “…licensed debt management companies do not need a…money [transmitter] license…”
  • “I am not certain that a separate company that works in conjunction with the debt management services company to effect the transmission of funds, should enjoy that same exemption, so those separate companies should plan to obtain transmitter licenses…”
  • “… a [money transmitter] license would be necessary…”
  • “…the entities or individuals involved in the activities described in your letter would need to be licensed…”

HOW TO REGISTER FOR THE WEBINARS

There is no charge to attend the Webinars on “State Money Transmitter Law Compliance for Debt Relief Operations”. To attend, simply register at the following URLs (cut and paste into your browser for easier use):

May 10: https://student.gototraining.com/67q2t/register/3053677325185536

May 17: https://student.gototraining.com/67q2t/register/4638177985121936128

If you have any questions or require any additional information about the Webinars, please e-mail National Policy Group at [email protected]

ABOUT NATIONAL POLICY GROUP

National Policy Group (www.NationalPolicyGroup.com) is a highly experienced legislative and government affairs firm providing comprehensive lobbying and regulatory representation to corporations, associations, professional organizations and specialized interest constituencies.National Policy Group gives you the inside experience, contacts and knowledge of procedures that comes only from decades on Capitol Hill, the White House, regulatory agencies and state legislatures. From the introduction of a bill, to committee consideration, to floor debate, to conference and to the signing into law, National Policy Group can assist you each and every step of the way.

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  • Scott Johnson

    Maine Definitions on handling funds

    §6175. Handling of consumer funds
    1. Funds deposited in trust account. The debt management service provider shall deposit, within 2 business days of receipt, all funds received from or on behalf of a consumer for payment to a creditor or creditors in a federally insured trust account for the benefit of the consumer in a supervised financial organization. Any trust account established to receive consumer funds is free from trustee process and unavailable to creditors of the debt management service provider.
    [ 1999, c. 560, §3 (NEW) .]
    2. Requirements for handling of funds. The debt management service provider shall:
    A. Maintain separate records of account for each consumer receiving debt management services; [1999, c. 560, §3 (NEW).]
    B. Remit funds received from or on behalf of a consumer to the consumer’s creditor or creditors within 15 business days of receipt of the funds; and [1999, c. 560, §3 (NEW).]
    C. Correct or remedy any misdirected payments resulting from an error by the debt management service provider and reimburse the consumer for any actual costs or fees imposed by a creditor as a result of such misdirection. [1999, c. 560, §3 (NEW).]
    [ 1999, c. 560, §3 (NEW) .]
    3. Commingling of funds. The debt management service provider may not commingle trust accounts established for the benefit of consumers with any operating accounts of the debt management service provider.
    [ 1999, c. 560, §3 (NEW) .]
    SECTION HISTORY
    1999, c. 560, §3 (NEW).

  • Scott Johnson

    Angleo

    Here is the definition from FL
    Money Transmitter

    This license authorizes the holder to transmit funds, either by wire, facsimile, electronic transfer, courier or otherwise, within this country or to or from locations outside this country.

    Here is a link for license verification
    http://www.flofr.com/Downloads…

    Idaho

    A “money transmitter” is defined as any business engaged in receiving money for transmission or transmitting money within the United States or to locations outside the United States by any and all means including, but not limited to, payment instruments, wire transfers, facsimile or electronic transfers. The Securities Bureau of the Department of Finance is charged with the responsibility of administering and enforcing the Idaho Money Transmitters Act.

    Here is a link for license verification
    http://finance.idaho.gov/Money…

    After a quick Search Noteworld has their license verification on their web site

    http://www.noteworld.com/WhoIs…

  • Angelo

    Am I naive in thinking that companies like Global and Noteworld are the money transmitters since they are the actual distributors of funds and not the debt relief company? Unless of course the DR company takes possession of funds.

  • Angelo

    Am I naive in thinking that companies like Global and Noteworld are the money transmitters since they are the actual distributors of funds and not the debt relief company? Unless of course the DR company takes possession of funds.

    • Scott Johnson

      Angleo

      Here is the definition from FL
      Money Transmitter

      This license authorizes the holder to transmit funds, either by wire, facsimile, electronic transfer, courier or otherwise, within this country or to or from locations outside this country.

      Here is a link for license verification
      http://www.flofr.com/Downloads/licensecheck.htm

      Idaho

      A “money transmitter” is defined as any business engaged in receiving money for transmission or transmitting money within the United States or to locations outside the United States by any and all means including, but not limited to, payment instruments, wire transfers, facsimile or electronic transfers. The Securities Bureau of the Department of Finance is charged with the responsibility of administering and enforcing the Idaho Money Transmitters Act.

      Here is a link for license verification
      http://finance.idaho.gov/MoneyTransmitter/MoneyTransmitterLicense.aspx

      After a quick Search Noteworld has their license verification on their web site

      http://www.noteworld.com/WhoIsNoteWorld/Licensing

    • Scott Johnson

      Maine Definitions on handling funds

      §6175. Handling of consumer funds
      1. Funds deposited in trust account. The debt management service provider shall deposit, within 2 business days of receipt, all funds received from or on behalf of a consumer for payment to a creditor or creditors in a federally insured trust account for the benefit of the consumer in a supervised financial organization. Any trust account established to receive consumer funds is free from trustee process and unavailable to creditors of the debt management service provider.
      [ 1999, c. 560, §3 (NEW) .]
      2. Requirements for handling of funds. The debt management service provider shall:
      A. Maintain separate records of account for each consumer receiving debt management services; [1999, c. 560, §3 (NEW).]
      B. Remit funds received from or on behalf of a consumer to the consumer’s creditor or creditors within 15 business days of receipt of the funds; and [1999, c. 560, §3 (NEW).]
      C. Correct or remedy any misdirected payments resulting from an error by the debt management service provider and reimburse the consumer for any actual costs or fees imposed by a creditor as a result of such misdirection. [1999, c. 560, §3 (NEW).]
      [ 1999, c. 560, §3 (NEW) .]
      3. Commingling of funds. The debt management service provider may not commingle trust accounts established for the benefit of consumers with any operating accounts of the debt management service provider.
      [ 1999, c. 560, §3 (NEW) .]
      SECTION HISTORY
      1999, c. 560, §3 (NEW).

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