Senate Bill sb1954

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                                  SB 1954

    By Senator Aronberg





    27-910A-06                                          See HB 667

  1                      A bill to be entitled

  2         An act relating to credit counseling services;

  3         amending s. 817.801, F.S.; revising and

  4         providing definitions; amending s. 817.802,

  5         F.S., relating to unlawful fees and costs;

  6         limiting application to certain debtors;

  7         amending s. 817.804, F.S.; revising annual

  8         audit requirements; amending s. 817.805, F.S.;

  9         including creditor contributions within an

10         authorized deduction from requirements for

11         disbursement of funds; providing an effective

12         date.

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14  Be It Enacted by the Legislature of the State of Florida:

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16         Section 1.  Section 817.801, Florida Statutes, is

17  amended to read:

18         817.801  Definitions.--As used in this part:

19         (1)(4)  "Credit counseling agency" means any

20  organization providing debt management services or credit

21  counseling services.

22         (2)(1)  "Credit counseling services" means confidential

23  money management, debt reduction, and financial educational

24  services.

25         (3)  "Creditor contribution" means any sum that a

26  creditor agrees to contribute to a credit counseling agency,

27  whether directly or by setoff against amounts otherwise

28  payable to the creditor on behalf of debtors. However, a

29  creditor contribution may not reduce any sums to be credited

30  to the account of a debtor making a payment to the credit

31  counseling agency for further payment to the creditor.

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    Florida Senate - 2006                                  SB 1954
    27-910A-06                                          See HB 667




 1         (4)(2)  "Debt management services" means services

 2  provided to a debtor by a credit counseling organization for a

 3  fee to:

 4         (a)  Effect the adjustment, compromise, or discharge of

 5  any unsecured account, note, or other indebtedness of the

 6  debtor; or

 7         (b)  Receive from the debtor and disburse to a creditor

 8  any money or other thing of value.

 9         (5)(3)  "Person" means any individual, corporation,

10  partnership, trust, association, or other legal entity.

11         Section 2.  Section 817.802, Florida Statutes, is

12  amended to read:

13         817.802  Unlawful fees and costs.--

14         (1)  It is unlawful for any person, while engaging in

15  debt management services or credit counseling services, to

16  charge or accept from a debtor residing in this state,

17  directly or indirectly, a fee or contribution greater than $50

18  for the initial setup or initial consultation. Subsequently,

19  the person may not charge or accept a fee or contribution from

20  a debtor residing in this state greater than $120 per year for

21  additional consultations or, alternatively, if debt management

22  services as defined in s. 817.801(4)(2) (b) are provided, the

23  person may charge the greater of 7.5 percent of the amount

24  paid monthly by the debtor to the person or $35 per month.

25         (2)  No provision of This section does not prohibit

26  prohibits any person, while engaging in debt management or

27  credit counseling services, from imposing upon and receiving

28  from a debtor a reasonable and separate charge or fee for

29  insufficient funds transactions.

30         Section 3.  Paragraph (a) of subsection (1) of section

31  817.804, Florida Statutes, is amended to read:

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    Florida Senate - 2006                                  SB 1954
    27-910A-06                                          See HB 667




 1         817.804  Requirements; disclosure and financial

 2  reporting.--

 3         (1)  Any person engaged in debt management services or

 4  credit counseling services shall:

 5         (a)  Obtain from a certified public accountant licensed

 6  under s. 473.308 an annual audit that shall include of all

 7  accounts of such person in which the funds of debtors are

 8  deposited and from which payments are made to creditors on

 9  behalf of debtors.

10         Section 4.  Section 817.805, Florida Statutes, is

11  amended to read:

12         817.805  Disbursement of funds.--Any person engaged in

13  debt management or credit counseling services shall disburse

14  to the appropriate creditors all funds received from a debtor,

15  less any fees permitted by s. 817.802 and any creditor

16  contributions, within 30 days after receipt of such funds.

17  Further, any person engaged in such services shall maintain a

18  separate trust account for the receipt of any funds from

19  debtors each debtor and the disbursement of such funds on

20  behalf of such debtors debtor.

21         Section 5.  This act shall take effect July 1, 2006.

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