1 | The Commerce Council recommends the following: |
2 |
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3 | Council/Committee Substitute |
4 | Remove the entire bill and insert: |
5 | A bill to be entitled |
6 | An act relating to credit counseling services; amending s. |
7 | 817.801, F.S.; revising and providing definitions; |
8 | amending s. 817.802, F.S., relating to unlawful fees and |
9 | costs; limiting application to certain debtors; amending |
10 | s. 817.804, F.S.; revising annual audit requirements; |
11 | amending s. 817.805, F.S.; including creditor |
12 | contributions within an authorized deduction from |
13 | requirements for disbursement of funds; providing a |
14 | limitation on creditor contributions; providing an |
15 | effective date. |
16 |
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17 | Be It Enacted by the Legislature of the State of Florida: |
18 |
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19 | Section 1. Section 817.801, Florida Statutes, is amended |
20 | to read: |
21 | 817.801 Definitions.--As used in this part: |
22 | (1)(4) "Credit counseling agency" means any organization |
23 | providing debt management services or credit counseling |
24 | services. |
25 | (2)(1) "Credit counseling services" means confidential |
26 | money management, debt reduction, and financial educational |
27 | services. |
28 | (3) "Creditor contribution" means any sum that a creditor |
29 | agrees to contribute to a credit counseling agency, whether |
30 | directly or by setoff against amounts otherwise payable to the |
31 | creditor on behalf of debtors. |
32 | (4)(2) "Debt management services" means services provided |
33 | to a debtor by a credit counseling organization for a fee to: |
34 | (a) Effect the adjustment, compromise, or discharge of any |
35 | unsecured account, note, or other indebtedness of the debtor; or |
36 | (b) Receive from the debtor and disburse to a creditor any |
37 | money or other thing of value. |
38 | (5)(3) "Person" means any individual, corporation, |
39 | partnership, trust, association, or other legal entity. |
40 | Section 2. Section 817.802, Florida Statutes, is amended |
41 | to read: |
42 | 817.802 Unlawful fees and costs.-- |
43 | (1) It is unlawful for any person, while engaging in debt |
44 | management services or credit counseling services, to charge or |
45 | accept from a debtor residing in this state, directly or |
46 | indirectly, a fee or contribution greater than $50 for the |
47 | initial setup or initial consultation. Subsequently, the person |
48 | may not charge or accept a fee or contribution from a debtor |
49 | residing in this state greater than $120 per year for additional |
50 | consultations or, alternatively, if debt management services as |
51 | defined in s. 817.801(4)(2)(b) are provided, the person may |
52 | charge the greater of 7.5 percent of the amount paid monthly by |
53 | the debtor to the person or $35 per month. |
54 | (2) No provision of This section does not prohibit |
55 | prohibits any person, while engaging in debt management or |
56 | credit counseling services, from imposing upon and receiving |
57 | from a debtor a reasonable and separate charge or fee for |
58 | insufficient funds transactions. |
59 | Section 3. Paragraph (a) of subsection (1) of section |
60 | 817.804, Florida Statutes, is amended to read: |
61 | 817.804 Requirements; disclosure and financial |
62 | reporting.-- |
63 | (1) Any person engaged in debt management services or |
64 | credit counseling services shall: |
65 | (a) Obtain from a licensed certified public accountant |
66 | licensed under s. 473.308 an annual audit in accordance with |
67 | generally accepted auditing standards that shall include of all |
68 | accounts of such person in which the funds of debtors are |
69 | deposited and from which payments are made to creditors on |
70 | behalf of debtors. |
71 | Section 4. Section 817.805, Florida Statutes, is amended |
72 | to read: |
73 | 817.805 Disbursement of funds.--Any person engaged in debt |
74 | management or credit counseling services shall disburse to the |
75 | appropriate creditors all funds received from a debtor, less any |
76 | fees permitted by s. 817.802 and any creditor contributions, |
77 | within 30 days after receipt of such funds. However, a creditor |
78 | contribution may not reduce any sums to be credited to the |
79 | account of a debtor making a payment to the credit counseling |
80 | agency for further payment to the creditor. Further, any person |
81 | engaged in such services shall maintain a separate trust account |
82 | for the receipt of any funds from debtors each debtor and the |
83 | disbursement of such funds on behalf of such debtors debtor. |
84 | Section 5. This act shall take effect July 1, 2006. |