Fair Debt Settlement Practices Act.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill, the Fair Debt Settlement Practices Act, aims to protect consumers and commercial financing recipients from deceptive practices by debt settlement providers. It expands existing protections to include commercial financing recipients and debtors, requiring clearer disclosures about the process and potential outcomes. The bill also regulates how debt settlement providers communicate with creditors and establishes rules for payment processors to ensure transparency and accountability.
Key provisions
- Expands protections to include commercial financing recipients and debtors.
- Requires debt settlement providers to provide detailed disclosures about debt settlement services, including potential risks and fees.
- Prohibits debt settlement providers from engaging in false, deceptive, or misleading practices.
- Establishes rules for how debt settlement providers communicate with creditors.
- Regulates payment processors to ensure transparency and prevent unfair practices.
- Allows consumers to terminate debt settlement contracts without penalty.
- Creates a process for consumers to recover damages for violations of the act.
- Defines key terms such as ‘commercial financing,’ ‘commercial financing recipient,’ and ‘debt settlement services.’
Who is affected
- Consumers
- Commercial financing recipients
- Debt settlement providers
- Creditors
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
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