Amendment
Bill No. 1245
Amendment No. 776273
CHAMBER ACTION
Senate House
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1Representative Hasner offered the following:
2
3     Amendment (with directory and title amendments)
4     Remove lines 41 through 119, and insert:
5providing debt management services or credit counseling
6services.
7     817.802  Unlawful fees and costs.--
8     (1)  It is unlawful for any person, while engaging in debt
9management services or credit counseling services, to charge or
10accept from a debtor, directly or indirectly, a fee or
11contribution greater than $50 for the initial setup or initial
12consultation. Subsequently, the person may not charge or accept
13a fee or contribution from a debtor greater than $120 per year
14for additional consultations or, alternatively, if debt
15management services as defined in s. 817.801(2)(b) are provided,
16the person may charge the greater of 7.5 percent of the amount
17paid monthly by the debtor to the person or $35 per month.
18     (2)  No provision of this section prohibits any person,
19while engaging in debt management or credit counseling services,
20from imposing upon and receiving from a debtor a reasonable and
21separate charge or fee for insufficient funds transactions.
22     817.803  Exceptions.--Nothing in this part applies to:
23     (1)  Any debt management or credit counseling services
24provided in the practice of law in this state;
25     (2)  Any person who engages in debt adjustment to adjust
26the indebtedness owed to such person; or
27     (3)  The following entities or their subsidiaries:
28     (a)  The Federal National Mortgage Association;
29     (b)  The Federal Home Loan Mortgage Corporation;
30     (c)  The Florida Housing Finance Corporation, a public
31corporation created in s. 420.504; or
32     (d)  A bank, bank holding company, trust company, savings
33and loan association, credit union, credit card bank, or savings
34bank that is regulated and supervised by the Office of the
35Comptroller of the Currency, the Office of Thrift Supervision,
36the Federal Reserve, the Federal Deposit Insurance Corporation,
37the National Credit Union Administration, the Office of
38Financial Regulation of the Department of Financial Services, a
39consumer reporting agency as defined in the Federal Fair Credit
40Reporting Act, 15 U.S.C. ss. 1681-1681y, any state banking
41regulator, or any subsidiary or affiliate of a bank holding
42company, its employees, and its exclusive agents acting under
43written agreement.
44     817.804  Requirements; disclosure and financial
45reporting.--
46     (1)  Any person engaged in debt management services or
47credit counseling services shall:
48     (a)  Obtain from a certified public accountant licensed
49under s. 473.308 an annual audit of all accounts of such person
50in which the funds of debtors are deposited and from which
51payments are made to creditors on behalf of debtors.
52     (b)  Obtain and maintain at all times insurance coverage
53for employee dishonesty, depositor's forgery, and computer
54fraud. The insurance coverage must be in an amount not less than
55the greater of $100,000 or 10 percent of the monthly average of
56the aggregate amount of all deposits made for distribution to
57creditors with such person by all debtors for the 6 months
58immediately preceding the date of initial application for or
59renewal of the insurance. The deductible on such coverage shall
60not exceed 10 percent of the face amount of the policy coverage.
61     (2)  A copy of the annual audit and insurance policies
62required by this section shall be available for public
63inspection at each branch location. Copies shall be provided,
64upon written request, to any party requesting a copy for a
65charge not to exceed the cost of the reproduction of documents.
66     817.805  Disbursement of funds.--Any person engaged in debt
67management or credit counseling services shall disburse to the
68appropriate creditors all funds received from a debtor, less any
69fees permitted by s. 817.802, within 30 days after receipt of
70such funds. Further, any person engaged in such services shall
71maintain a separate trust account for the receipt of any funds
72from each debtor and the disbursement of such funds on behalf of
73such debtor.
74     817.806  Violations.--
75     (1)  Any person who violates any provision of this part
76commits an unfair or deceptive trade practice as defined in part
77II of chapter 501. Violators shall be subject to the penalties
78and remedies provided therein. Further, any consumer injured by
79a violation of this part may bring an action for recovery of
80damages. Judgment shall be entered for actual damages, but in no
81case less than the amount paid by the consumer to the credit
82counseling agency, plus reasonable attorney's fees and costs.
83     (2)  Any person who violates any provision of this part
84commits a felony of the third degree, punishable as provided in
85s. 775.082 or s. 775.083.
86     Section 2.  This act shall take effect July 1, 2004.
87
88
89=========== D I R E C T O R Y  A M E N D M E N T ==========
90     Remove line(s) 25 and 26, and insert:
91consisting of sections 817.801, 817.802, 817.803, 817.804,
92817.805, and 817.806, Florida Statutes, is created to read:
93
94================= T I T L E  A M E N D M E N T =================
95     Remove lines 12-19, and insert:
96providing disbursement of funds requirements; providing
97civil penalties; providing for awards of attorney's fees
98and costs; providing for criminal penalties;


CODING: Words stricken are deletions; words underlined are additions.