Senate Bill sb1954c1

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    Florida Senate - 2006                           CS for SB 1954

    By the Committee on Banking and Insurance; and Senator
    Aronberg




    597-2215-06

  1                      A bill to be entitled

  2         An act relating to credit counseling services;

  3         amending s. 817.801, F.S.; providing a

  4         definition; amending s. 817.802, F.S., relating

  5         to unlawful fees and costs; limiting

  6         application to certain debtors; amending s.

  7         817.804, F.S.; revising annual audit

  8         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.

29         (4)(2)  "Debt management services" means services

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

31  fee to:

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    Florida Senate - 2006                           CS for SB 1954
    597-2215-06




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

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

 3  debtor; or

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

 5  any money or other thing of value.

 6         (5)(3)  "Person" means any individual, corporation,

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

 8         Section 2.  Section 817.802, Florida Statutes, is

 9  amended to read:

10         817.802  Unlawful fees and costs.--

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

12  debt management services or credit counseling services, to

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

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

15  for the initial setup or initial consultation. Subsequently,

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

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

18  additional consultations or, alternatively, if debt management

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

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

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

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

23  prohibits any person, while engaging in debt management or

24  credit counseling services, from imposing upon and receiving

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

26  insufficient funds transactions.

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

28  817.804, Florida Statutes, is amended to read:

29         817.804  Requirements; disclosure and financial

30  reporting.--

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    Florida Senate - 2006                           CS for SB 1954
    597-2215-06




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

 2  credit counseling services shall:

 3         (a)  Obtain from a licensed certified public accountant

 4  licensed under s. 473.308 an annual audit conducted in

 5  accordance with generally accepted auditing standards which

 6  shall include of all accounts of such person in which the

 7  funds of debtors are deposited and from which payments are

 8  made to creditors on behalf of debtors.

 9         Section 4.  Section 817.805, Florida Statutes, is

10  amended to read:

11         817.805  Disbursement of funds.--Any person engaged in

12  debt management or credit counseling services shall disburse

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

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

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

16  However, a creditor contribution may not reduce any sums to be

17  credited to the account of a debtor making a payment to the

18  credit counseling agency for further payment to the creditor.

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

20  separate trust account for the receipt of any funds from

21  debtors each debtor and the disbursement of such funds on

22  behalf of such debtors debtor.

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

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    Florida Senate - 2006                           CS for SB 1954
    597-2215-06




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1954

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 4  1.   Clarifies that, a debt management or credit counseling
         service is required to deduct and retain the creditor's
 5       contribution from the debtor's payment, less any fees
         authorized under s. 817.802, F.S., and any such
 6       creditor's contributions cannot reduce any amounts to be
         credited to the account of the debtor for further payment
 7       to the creditor.  As a result, the debtor's account with
         the creditor would be credited for the amount remitted by
 8       the debtor, less any fees authorized by law and the
         credit counseling or debt management service would
 9       receive its creditor's contribution at the time of the
         debtor's payment.
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    2.   Allows any licensed CPA, regardless of the state of
11       licensure, to conduct an annual audit as long as such
         audits are conducted in accordance with generally
12       accepted auditing standards.

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