Debt Relief Industry Regulation / Legislation

Debt Relief Legislation in the Works

The National Policy Group has just sent out a list of the most recent legislative action covering debt relief.

Members of the debt relief industry may want to pay attention to the following proposed legislation:


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

6 Comments

  • Here is what is specifically says.

    THE AMOUNT OF THE SETTLEMENT FEE CHARGED BY A DEBT SETTLEMENT COMPANY WITH RESPECT TO EACH DEBT COVERED BY A DEBT SETTLEMENT SERVICES AGREEMENT SHALL NOT EXCEED THE LESSER OF:

    (A) THE AMOUNT THAT IS REASONABLE AND COMMENSURATE TO THE DEBT SETTLEMENT SERVICES PROVIDED TO THE DEBTOR; AND

    (B) THE AMOUNT THAT IS TWENTY PERCENT OF THE DIFFERENCE BETWEEN:
    (I) THE PRINCIPAL AMOUNT OF THE DEBT; AND
    (II) THE AMOUNT:
    (A) PAID BY THE DEBT SETTLEMENT COMPANY TO THE CREDITOR PURSUANT TO THE SETTLEMENT NEGOTIATED BY THE DEBT SETTLEMENT COMPANY ON BEHALF OF THE DEBTOR AS FULL AND COMPLETE SATISFACTION OF THE CREDITOR’S CLAIM WITH REGARD TO THAT DEBT; OR
    (B) NEGOTIATED BY THE DEBT SETTLEMENT COMPANY AND PAID BY THE DEBTOR TO THE CREDITOR PURSUANT TO A SETTLEMENT NEGOTIATED BY THE DEBT SETTLEMENT COMPANY ON BEHALF OF THE DEBTOR AS FULL AND COMPLETE SATISFACTION OF THE CREDITOR’S CLAIM WITH REGARD TO THAT DEBT.

    • Here is what is specifically says.

      THE AMOUNT OF THE SETTLEMENT FEE CHARGED BY A DEBT SETTLEMENT COMPANY WITH RESPECT TO EACH DEBT COVERED BY A DEBT SETTLEMENT SERVICES AGREEMENT SHALL NOT EXCEED THE LESSER OF:

      (A) THE AMOUNT THAT IS REASONABLE AND COMMENSURATE TO THE DEBT SETTLEMENT SERVICES PROVIDED TO THE DEBTOR; AND

      (B) THE AMOUNT THAT IS TWENTY PERCENT OF THE DIFFERENCE BETWEEN:
      (I) THE PRINCIPAL AMOUNT OF THE DEBT; AND
      (II) THE AMOUNT:
      (A) PAID BY THE DEBT SETTLEMENT COMPANY TO THE CREDITOR PURSUANT TO THE SETTLEMENT NEGOTIATED BY THE DEBT SETTLEMENT COMPANY ON BEHALF OF THE DEBTOR AS FULL AND COMPLETE SATISFACTION OF THE CREDITOR’S CLAIM WITH REGARD TO THAT DEBT; OR
      (B) NEGOTIATED BY THE DEBT SETTLEMENT COMPANY AND PAID BY THE DEBTOR TO THE CREDITOR PURSUANT TO A SETTLEMENT NEGOTIATED BY THE DEBT SETTLEMENT COMPANY ON BEHALF OF THE DEBTOR AS FULL AND COMPLETE SATISFACTION OF THE CREDITOR’S CLAIM WITH REGARD TO THAT DEBT.

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