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