HB 1045

1
A bill to be entitled
2An act relating to debt settlement services; amending s.
3817.801, F.S.; revising terms to exempt debt settlement
4services from provisions regulating debt management
5services and credit counseling services; creating part V
6of ch. 817, F.S.; proving a short title; defining terms;
7providing exceptions from provisions regulating debt
8settlement services; requiring that debt settlement
9providers be licensed by the Office of Financial
10Regulation; providing application procedures and
11requirements; providing for issuance, expiration, and
12renewal of licenses; requiring license fees; authorizing
13the office to deny licenses under certain circumstances;
14authorizing debt settlement providers to continue
15providing services pending an administrative hearing after
16denial of a license application; requiring debt settlement
17agreements; requiring specified provisions of such
18agreements; authorizing a consumer to terminate or void an
19agreement under certain circumstances; limiting a
20consumer's grant of a power of attorney to a debt
21settlement provider; requiring debt settlement providers
22to maintain certain records; requiring debt settlement
23providers to act in good faith and maintain certain
24insurance coverage or surety bond; requiring debt
25settlement providers to provide certain information,
26disclosures, and assistance to consumers; limiting the
27fees that debt settlement providers may charge to
28consumers; prohibiting certain acts by debt settlement
29providers; requiring debt settlement providers to
30establish an internal complaint process and provide
31certain information to the office; authorizing consumers
32to bring civil actions against debt settlement providers
33for certain violations of the act; providing penalties;
34limiting a debt settlement provider's liability under
35certain circumstances; authorizing the office to enforce
36the act and impose certain penalties; limiting time for
37bringing civil actions authorized by the act; authorizing
38the office to suspend, revoke, or deny the license of a
39debt settlement provider under certain circumstances;
40providing penalties; authorizing the office to conduct
41investigations, administer oaths, and impose charges on
42persons subject to investigation; authoring interagency
43agreements; requiring the office to adopt rules; providing
44for legislative review of the act by a specified date;
45providing an effective date.
46
47Be It Enacted by the Legislature of the State of Florida:
48
49     Section 1.  Subsections (1), (2), and (4) of section
50817.801, Florida Statutes, are amended to read:
51     817.801  Definitions.--As used in this part:
52     (1)  "Credit counseling agency" means any organization
53providing debt management services or credit counseling
54services. The term does not include a debt settlement provider
55as defined in s. 817.903.
56     (2)  "Credit counseling services" means confidential money
57management, debt reduction, and financial educational services.
58The term does not include a debt settlement provider as defined
59in s. 817.903.
60     (4)  "Debt management services" means services provided to
61a debtor by a credit counseling organization for a fee to:
62     (a)  Effect the adjustment, compromise, or discharge of any
63unsecured account, note, or other indebtedness of the debtor;
64and or
65     (b)  Receive from the debtor and disburse to a creditor any
66money or other thing of value.
67
68The term does not include a debt settlement provider as defined
69in s. 817.903.
70     Section 2.  Part V of chapter 817, Florida Statutes,
71consisting of sections 817.901, 817.903, 817.905, 817.907,
72817.909, 817.911, 817.913, 817.915, 817.917, 817.919, 817.921,
73817.923, 817.925, and 817.927, is created to read:
74
PART V
75
DEBT SETTLEMENT SERVICES
76     817.901  Short title.--This part may be cited as the "Debt
77Settlement Services Act."
78     817.903  Definitions.--As used in this part, the term:
79     (1)  "Concession" means a creditor's consent to accept
80repayment of a debt from a consumer on terms more favorable to
81the consumer than the original contractual terms between the
82creditor and the consumer.
83     (2)  "Debt settlement provider" means a person required to
84be licensed under this part who provides, offers to provide, or
85agrees to provide debt settlement services. The term does not
86include a credit counseling agency as defined in s. 817.801.
87     (3)  "Debt settlement services" means services provided for
88a consumer by a debt settlement provider for a fee to obtain a
89concession from the consumer's creditor or otherwise effect the
90adjustment, compromise, or discharge of any unsecured account,
91note, or other indebtedness of the consumer without receiving
92from the consumer and disbursing to the creditor any money or
93other thing of value. The term does not include debt management
94services or credit counseling services as defined in s. 817.801.
95     (4)  "Financial institution" has the same meaning as in s.
96655.005.
97     (5)  "Office" means the Office of Financial Regulation of
98the Financial Services Commission.
99     (6)  "Person in control" of a debt settlement provider
100means a person who has authority, directly or indirectly, to
101affect the management or policies of the provider. The term
102includes, but is not limited to, an owner, whether a partnership
103or sole proprietorship, a corporate officer, a director, a
104resident agent, or a trustee.
105     (7)  "Presettlement debt" means the amount of money or
106other thing of value owed by a consumer to a creditor at the
107time that the consumer executes a service agreement with a debt
108settlement provider.
109     817.905  Application of part; exceptions.--This part does
110not apply to the following persons or their employees when
111engaged in the person's regular course of business:
112     (1)  A person who provides debt settlement services for a
113consumer and who does not receive compensation for such services
114from the consumer or any of the consumer's creditors.
115     (2)  An attorney licensed or otherwise authorized to
116practice law in this state while providing legal services within
117the attorney-client relationship described in s. 90.502.
118     (3)  A certified public account licensed under chapter 473
119while providing accounting services within the accountant-client
120relationship described in s. 90.5055.
121     (4)  A judicial officer, a person acting under a court
122order or order of an administrative agency, or the assignee of a
123creditor.
124     (5)  A financial institution or financial institution
125holding company, or a subsidiary, agent, or affiliate of a
126financial institution or financial institution holding company.
127     (6)  A title insurance agent licensed under s. 626.8417, a
128title insurance agency licensed under s. 626.8418, a title
129insurer authorized to transact business in this state under s.
130624.401, an escrow agent, or another person who provides bill
131paying services if the debt settlement services are incidental
132to the bill paying services.
133     817.907  Licensure of debt settlement providers; fees;
134grounds for denial of license.--
135     (1)  A person may not provide debt settlement services in
136this state unless the person is licensed under this part as a
137debt settlement provider. However, an employee or agent of a
138licensed debt settlement provider is not required to obtain a
139separate license. The office shall maintain and publicize a list
140of the licensed debt settlement providers in the state.
141     (2)  A person seeking licensure as a debt settlement
142provider must apply to the office in the format prescribed by
143the office. An application must include:
144     (a)  The corporate or fictitious name and any other name
145under which the debt settlement provider conducts business in
146the state.
147     (b)  The street address and telephone number of the debt
148settlement provider's principal place of business in the state
149and, if applicable, the provider's email address and Internet
150website.
151     (c)  The street address of each location at which the debt
152settlement provider engages in debt settlement services in the
153state. A license is valid only for a location listed in the
154license. A debt settlement provider must notify the office in
155writing in the format prescribed the office before any change of
156a licensed location.
157     (d)  The full name, street address, telephone number, and
158social security number or federal employer identification number
159of each person who has at least a 10-percent ownership interest
160in the debt settlement provider.
161     (e)  A statement as to whether the debt settlement
162provider, if incorporated, is a domestic or foreign corporation,
163the state and date of incorporation, the charter number of the
164corporation, and, if a foreign corporation, the date that the
165corporation first registered with the Department of State to
166transact business in this state.
167     (f)  The name and address of the debt settlement provider's
168registered agent for service of process in the state.
169     (g)  A statement identifying and explaining any material
170civil or criminal judgment relating to financial fraud or misuse
171and any material administrative or enforcement action relating
172to financial fraud or misuse by a governmental agency in any
173jurisdiction against the applicant or any of its officers,
174directors, owners, or agents.
175     (h)  A copy of each form of service agreement that the
176applicant uses for consumers in the state as provided in s.
177817.909.
178     (i)  Evidence that the debt settlement provider has the
179insurance coverage or surety bond required under s. 817.911(2)
180and that the premiums for the insurance or bond are paid in
181full.
182     (j)  The schedule of fees that the applicant charges to
183consumers in the state as provided in s. 817.909(2).
184     (k)  A copy or description of the financial analysis that
185the debt settlement provider uses to estimate a consumer's
186monthly income available for repayment or settlement of the debt
187as provided in s. 817.911(4)(a).
188     (3)(a)  The office shall approve or deny a license within
18960 days after an application is submitted. The office shall
190issue the license upon determining that the application is
191complete and accompanied by the license fee.
192     (b)  A license is valid for 1 year after the date of
193issuance and is not assignable or transferable. A debt
194settlement provider changing its name, address, registered
195agent, insurance coverage, or surety bond at any time other than
196renewal of the license must notify the office in writing within
19760 days after the change.
198     (4)  A debt settlement provider may renew a license by
199submitting a renewal application to the office on forms
200prescribed by the office at least 30 days, but not more than 60
201days, before the license expires. The application must disclose
202any changes to the information submitted to the office for the
203initial license or most recent renewal of the license. The
204office shall renew a license upon determining that the
205application is complete and accompanied by the license fee.
206     (5)  An application for an initial license or renewal of a
207license must be accompanied by a license fee set by the office
208by rule. The fee may not exceed $350 per year and may not exceed
209the actual cost of administering this part. If a credit
210counseling agency is required to pay a license or registration
211fee under part IV of this chapter, the license fee for a debt
212settlement provider may not exceed the fee paid by the credit
213counseling agency. The office shall deposit funds collected
214under this section in the General Inspection Trust Fund to be
215used for administration of this part.
216     (6)  The office may deny an application or refuse to renew
217the license of a debt settlement provider if the application
218contains information that is materially erroneous or incomplete
219or if the office determines that the provider or any person in
220control of the provider:
221     (a)  Has failed to meet the requirements for initial
222licensure as provided in this section.
223     (b)  Has been found guilty or convicted of, or pled guilty
224or nolo contendere to, a crime involving fraud, moral turpitude,
225dishonest dealing, or any violation of this part.
226     (c)  Has not satisfied any fine or penalty arising out of
227an administrative or civil enforcement action brought by any
228governmental agency or private person that is based upon conduct
229involving fraud, moral turpitude, dishonest dealing, or any
230violation of this part.
231     (d)  Has had a judgment entered against the debt settlement
232provider, or any person in control of the provider, in any
233action brought under the Florida Deceptive and Unfair Trade
234Practices Act as provided in part II of chapter 501 or any
235action brought under this part.
236
237Within 7 days after denying an application or refusing to renew
238a license under this subsection, the office shall notify the
239debt settlement provider in writing of the reasons for the
240denial. Upon submission of an application, a debt settlement
241provider may continue to provide debt settlement services while
242the application is pending, but must cease to provide such
243services if the office denies the application or refuses to
244renew the license.
245     (7)  If the debt settlement provider files a timely
246petition or request for an administrative hearing under ss.
247120.569 and 120.57 after the office denies an application or
248refuses to renew a license, until the office's decision becomes
249final agency action, the provider may continue to provide debt
250settlement services for a consumer with whom the provider has a
251service agreement executed before the office denied the
252application or refused to renew the license.
253     817.909  Debt settlement agreement.--
254     (1)  A debt settlement provider may engage in debt
255settlement services only pursuant to a service agreement that is
256signed and dated by the consumer before the provision of
257services. A service agreement must include:
258     (a)  A full and detailed description of the debt settlement
259services to be provided and an itemized schedule of the fees to
260be paid by the consumer for each service.
261     (b)  The street address of the debt settlement provider's
262principal place of business in the state and the name and
263address of the provider's registered agent for service of
264process in the state.
265     (c)1.  A provision allowing the consumer to cancel the
266agreement without penalty or obligation within 3 business days
267after the agreement is executed and a statement printed in all
268boldface type in immediate proximity to the space provided for
269the consumer's signature, in substantially the following form:
270
271You may cancel this agreement before midnight of the 3rd
272business day after the date you sign the agreement. See
273the attached Notice of Right to Cancel for details.
274
275     2.  The agreement must be accompanied by a notice of the
276consumer's right to cancel the agreement, printed in at least
27712-point type in substantially the following form:
278
279
NOTICE OF RIGHT TO CANCEL
280
281You may cancel this agreement for debt settlement services
282without penalty or obligation within 3 business days after
283the date you sign the agreement. Your payment must be
284returned to you within 10 business days after receipt of
285your written notice of cancellation. To cancel, you must
286sign, date, and mail or deliver this or any other written
287notice to: ...(name of debt settlement provider)... at
288...(address)... by midnight of ...(date).... If you cancel
289this agreement within the 3-day period, ...(name of debt
290settlement provider)... will refund all money you have
291already paid.
292I cancel this agreement:
293
294Name: ...(printed name of consumer)....
295Signature: ...(signature of consumer)....
296Date: ...(date)....
297
298     (d)  A provision allowing the consumer to terminate the
299agreement at any time by giving the debt settlement provider
300written notice, upon which any power of attorney granted by the
301consumer to the provider is void.
302     (2)  A debt settlement agreement may include a consumer's
303power of attorney to negotiate with the consumer's creditors on
304behalf of the consumer and settle the consumer's presettlement
305debt for no more than 50 percent of the debt. If a debt
306settlement agreement includes this power of attorney, the
307agreement must expressly limit the provider's authority to
308settle the debt for more than 50 percent of the presettlement
309debt unless the consumer agrees in writing to the settlement.
310     (3)  A debt settlement agreement may not provide for
311application of the law of any jurisdiction other than this
312state, contain a provision that limits or releases a person from
313liability for not performing the terms of the service agreement
314or committing a violation of this part, restrict a consumer's
315remedies under this part, or, notwithstanding s. 682.02, require
316the consumer to submit to arbitration.
317     (4)  A debt settlement provider must provide the consumer
318with a copy of the service agreement and each other document
319signed by the consumer at the time the documents are signed.
320     (5)  A consumer may void a debt settlement agreement if the
321debt settlement provider is not licensed as required in s.
322817.907 or charges the consumer a fee for debt settlement
323services that is prohibited under s. 817.913.
324     (6)  A debt settlement provider shall maintain records of
325the debt settlement services that it provide for a consumer for
326at least 4 years after the consumer's final payment. The debt
327settlement provider shall give the consumer a copy of the
328records within a reasonable time upon the consumer's request.
329     817.911  Debt settlement services; requirements; insurance
330coverage; surety bond.--
331     (1)  A debt settlement provider must act in good faith in
332all matters under this part.
333     (2)(a)  A debt settlement provider must obtain and maintain
334insurance coverage in an amount determined necessary by the
335office to protect consumers, which may not exceed the amount of
336insurance coverage required for a credit counseling agency under
337s. 817.804.
338     (b)  A debt settlement provider, in lieu of maintaining the
339insurance coverage required under paragraph (a), may obtain and
340maintain a surety bond in an amount of at least $10,000, but not
341more than $50,000, as determined necessary by the office based
342on the financial condition and business experience of the debt
343settlement provider, the provider's history of performing debt
344settlement services, and the risk to consumers. The bond must be
345filed with the office and be issued in favor of the office for
346the use and benefit of any consumer who is injured by a
347violation of this part. The aggregate liability of the surety to
348all claimants may not exceed the amount of the bond, regardless
349of the number or amount of claims. If multiple claims exceed the
350amount of the bond and the surety pays the bond's full amount to
351the office, the surety has no further liability. The office
352shall hold any funds collected from the surety for 6 months
353after the date of the first claim and immediately thereafter
354shall pay each claimant the pro rata share of the funds based on
355the claim's proportion of the aggregate amount of claims.
356     (3)  A debt settlement provider shall maintain a toll-free
357telephone number that allows a consumer to speak with a customer
358service representative during regular business hours.
359     (4)  Before a consumer executes a debt settlement
360agreement, the debt settlement provider must:
361     (a)  Prepare a financial analysis of the consumer's income,
362expenses, presettlement debt, and credit history which estimates
363the amount of the consumer's monthly income available for
364repayment or settlement of the debt. The debt settlement
365provider must provide the consumer with a copy of the financial
366analysis free of charge, whether or not the consumer executes a
367service agreement for debt settlement services.
368     (b)  Inform the consumer of the availability of assistance
369through a toll-free telephone number or in person to discuss the
370financial analysis required under paragraph (a).
371     (c)  Inform the consumer that not all debt settlement
372services are suitable for all consumers; that debt settlement
373may adversely affect the consumer's credit rating or credit
374scores; that nonpayment of debt may lead creditors to increase
375finance or other charges or undertake collection activities,
376including litigation; and that debt settlement may result in the
377consumer's increased tax liability, whether or not the consumer
378receives any money.
379     (d)  Inform the consumer that the debt settlement provider
380cannot guarantee specific results or compel a creditor to
381negotiate or settle a debt.
382     (e)  Inform the consumer that debt settlement services may
383require the consumer to meet certain savings goals in order to
384maximize settlement results.
385     (f)  Disclose that the debt settlement provider does not
386provide accounting or legal advice to consumers unless the
387provider is professionally licensed to provide such advice; that
388the provider is the consumer's advocate and does not receive
389compensation from creditors, financial institutions, or third-
390party collection agencies; and that the provider does not make
391payments to the consumer's creditors.
392     (5)  A debt settlement provider that maintains an Internet
393website must disclose on the website's main page, or on a page
394clearly linked to the main page, the provider's corporate or
395fictitious name, any other name under which the provider
396conducts business in the state, the street address and telephone
397number of the provider's principal place of business in the
398state, and the provider's email address.
399     817.913  Prohibited fees.--
400     (1)  A debt settlement provider may not impose, directly or
401indirectly, a fee or other charge on a consumer or receive money
402from or on behalf of a consumer for debt settlement services,
403except as authorized by this section.
404     (2)  A debt settlement provider may not charge or collect
405fees from a consumer for debt settlement services until the
406consumer executes a service agreement as provided in s. 817.909.
407The fees may not exceed 20 percent of the consumer's
408presettlement debt.
409     (3)  A debt settlement provider may charge a service fee to
410a consumer that does not exceed the service fees authorized
411under s. 832.08(5) or 5 percent of the face amount of the check,
412draft, or order, whichever is greater, for the collection of a
413dishonored check, draft, or other order for the payment of money
414to the provider.
415     817.915  Prohibited acts.--A debt settlement provider may
416not:
417     (1)  Engage in debt settlement services at any location
418other than a location licensed under s. 817.907.
419     (2)  Charge or accept from a consumer, directly or
420indirectly, any fee or charge prohibited under s. 817.913 or
421solicit a voluntary contribution from a consumer for any service
422provided for the consumer.
423     (3)  Engage in debt settlement services, or charge or
424accept from a consumer, directly or indirectly, any fee or
425contribution before the consumer signs a service agreement under
426s. 817.909.
427     (4)  Fail to maintain at all times the insurance coverage
428or surety bond required under s. 817.911(2).
429     (5)  Settle a debt on behalf of a consumer for more than 50
430percent of the amount of the presettlement debt unless the
431consumer agrees in writing to the settlement.
432     (6)  Accept a power of attorney from a consumer that
433authorizes the debt settlement provider to settle a debt on
434behalf of the consumer unless the power of attorney expressly
435limits the provider's authority to settle the debt for no more
436than 50 percent of the amount of the presettlement debt unless
437the consumer agrees in writing to the settlement.
438     (7)  Use or attempt to use a consumer's power of attorney
439after the consumer terminates the service agreement with the
440debt settlement provider.
441     (8)  Structure a settlement that results in a negative
442amortization schedule for repayment of any of a consumer's
443debts.
444     (9)  Settle a debt, or cause a consumer to believe that
445payment to a creditor settles a debt, unless the consumer
446receives before the settlement or payment a certification or
447confirmation from the creditor that the payment fully settles
448the debt or is part of a payment plan that, upon completion,
449fully settles the debt.
450     (10)  Initiate a transfer from a consumer's account unless
451the transfer is for return of money to the consumer, for payment
452of a fee authorized by a current debt settlement service
453agreement, for payment of a creditor to fund a negotiated
454settlement of no more than 50 percent of the presettlement debt,
455or for payment of a creditor to fund a negotiated settlement of
456more than 50 percent of the presettlement debt if the consumer
457agrees to the settlement and the transfer.
458     (11)  Purchase any debt or obligation of a consumer; lend
459money or provide credit to a consumer, except as a deferral of a
460fee payment at no additional expense to the consumer; obtain a
461mortgage or other security interest from any person in
462connection with the debt settlement services provided to the
463consumer; accept from, or on behalf of, a consumer a promissory
464note or other negotiable instrument, other than a check or
465demand draft; or accept a postdated check or demand draft.
466     (12)  Provide the consumer with less than the full benefit
467of any settlement of a debt negotiated by the debt settlement
468provider.
469     (13)  Advise a consumer to stop payment on any debts.
470     (14)  Represent to a consumer that the debt settlement
471provider is authorized or competent to provide legal or
472accounting advice, or perform legal or accounting services for a
473consumer, unless the provider is licensed to provide such advice
474or services.
475     (15)  Represent to a consumer that the debt settlement
476provider will furnish money to pay a bill or prevent the
477attachment of an asset; that partial payment of a certain amount
478will guarantee satisfaction of the full amount of a debt; or
479that participation in debt settlement services will prevent
480litigation, garnishment, attachment, repossession, foreclosure,
481eviction, or loss of employment.
482     (16)  Represent that the debt settlement provider is a
483corporation not for profit unless it is organized under chapter
484617 or is exempt from federal income taxation and has a
485certificate issued by the Internal Revenue Service recognizing
486the provider's exemption.
487     (17)  Make or use any false or misleading representation,
488omit any material fact in the offer or sale of services, or
489engage directly or indirectly in any fraudulent, false,
490misleading, unconscionable, unfair, or deceptive act or practice
491in connection with the offer or sale of any services of a debt
492settlement provider.
493     (18)  Violate any other provision of this part.
494     817.917  Complaints; civil remedies.--
495     (1)  A debt settlement provider shall establish an internal
496complaint process that allows the provider to receive, review,
497and address or resolve a consumer's complaint internally. The
498debt settlement provider shall notify each consumer in writing
499of the complaint process. A complaint process must specify a
500reasonable period after a consumer submits a complaint for the
501debt settlement provider to respond to the complaint. A debt
502settlement provider shall maintain records of each consumer
503complaint, its processing, and its resolution and shall disclose
504the records to the office upon request.
505     (2)(a)  A consumer who is injured by a debt settlement
506provider's violation of this part may bring an action in circuit
507court against the provider and any person who caused the
508violation for compensatory damages for the economic injury
509caused by the violation, or $1,000, whichever is greater, and
510reasonable attorney's fees and costs. The $1,000 minimum amount
511of compensatory damages per consumer does not apply to a class
512action.
513     (b)  In addition to the compensatory damages authorized
514under paragraph (a), if a debt settlement provider violates a
515consumer's rights under s. 817.909, the consumer may recover in
516a civil action all money paid by or on behalf of the consumer
517under the service agreement, except for amounts paid to
518creditors.
519     (c)  In addition to the compensatory damages authorized in
520paragraph (a), a consumer who voids a service agreement under s.
521817.909(5) may recover in a civil action all money paid by or on
522behalf of the consumer under the agreement.
523     (d)  A debt settlement provider is not liable under this
524section for a violation of this part if the provider proves that
525the violation is not intentional and resulted from a good faith
526error to comply with this part, despite the provider's use of
527procedures reasonably adapted to avoid the error. If, in
528connection with a violation, the debt settlement provider
529receives more money than authorized by the service agreement or
530this part, the defense provided in this paragraph is not
531available unless the provider refunds the excess moneys within 3
532business days after learning of the violation.
533     817.919  Administrative remedies; penalties.--
534     (1)  The office may enforce this part and rules adopted
535under this part by taking one or more of the following actions:
536     (a)  Ordering a debt settlement provider, a person in
537control of the provider, or the provider's employee or agent to
538cease and desist from any violations.
539     (b)  Ordering a debt settlement provider or a person
540causing a violation to correct the violation, including making
541restitution of money or property to the person aggrieved by the
542violation.
543     (c)  Imposing on a debt settlement provider, or a person
544causing a violation, a civil penalty not to exceed $1,000 for
545each violation.
546     (d)  Prosecuting a civil action to enforce an order; to
547obtain restitution, an injunction or other equitable relief, or
548both; or to intervene in an action brought by a consumer under
549s. 817.917(2).
550     (2)  If a person violates or knowingly authorizes, directs,
551or aids another person to violate a final order issued under
552subsection (1), the office may impose an additional civil
553penalty not to exceed $1,000 for each violation.
554     (3)  In determining the amount of a civil penalty to impose
555under subsection (1) or subsection (2), the office shall
556consider the seriousness of the violation, the good faith of the
557violator, any previous violations by the violator, the harm or
558potential harm of the violation to the public, and the net worth
559of the violator.
560     (4)(a)  The office may bring an action to enforce this part
561in any county.
562     (b)  The office may recover the reasonable costs of
563enforcing this part under this section, including attorney's
564fees based on the hours reasonably expended and the hourly rates
565for attorneys of comparable experience in the community.
566     817.921  Limitations of actions.--
567     (1)  An action brought under s. 817.917(2) must be
568commenced within 2 years after the latest of:
569     (a)  The consumer's final payment of money to the debt
570settlement provider.
571     (b)  The date on which the consumer discovered or
572reasonably should have discovered the facts giving rise to the
573consumer's claim.
574     (c)  Termination of an action or proceeding by the office
575for a violation of this part.
576     (2)  An action or proceeding brought under s. 817.919 must
577be commenced within 4 years after the conduct that is the basis
578of the office's complaint.
579     817.923  Disciplinary proceedings; penalties.--The office
580may suspend, revoke, or deny the renewal of a debt settlement
581provider's license, if:
582     (1)  A fact or condition exists that, if it existed when
583the debt settlement provider applied for a license, would be a
584reason for denying the license.
585     (2)  The debt settlement provider materially violates this
586part or a rule adopted under this part.
587     (3)  The debt settlement provider becomes insolvent. As
588used in this subsection, the term "insolvent" means:
589     (a)  Generally ceasing to pay debts in the ordinary course
590of business other than due to a good faith dispute.
591     (b)  Being unable to pay debts as they become due.
592     (c)  Being insolvent as defined in the federal Bankruptcy
593Code, 11 U.S.C. s. 101, as amended.
594     (4)  The debt settlement provider, or the provider's
595employee or agent, refuses to disclose records to the office as
596required in s. 817.917(1), fails to comply with s. 817.925(2)
597within 30 days after the request, or makes a material
598misrepresentation or omission in complying with s. 817.925(2).
599     (5)  The debt settlement provider does not respond within a
600reasonable time and in an appropriate manner to communications
601from the office.
602     817.925  Powers of Office of Financial Regulation;
603rulemaking.--
604     (1)  The Office of Financial Regulation may act on its own
605initiative, may act on a consumer complaint received by the
606office, may take action to obtain voluntary compliance with this
607part, and may seek or impose the administrative and disciplinary
608remedies authorized in this part.
609     (2)  The office may investigate and examine, in this state
610or any other jurisdiction, the activities, books, accounts, and
611records of a person who provides or offers to provide debt
612settlement services in the state. In connection with an
613investigation, the office may:
614     (a)  Charge the person the reasonable expenses necessarily
615incurred to conduct the examination.
616     (b)  Require or permit a person to file a statement under
617oath as to all the facts and circumstances of the matter under
618investigation.
619     (3)  The office may enter into cooperative arrangements
620with any other federal or state agency having authority over
621debt settlement providers and may exchange with any such agency
622information about a debt settlement provider, including
623information obtained during an examination of the provider.
624     (4)  The office shall adopt rules under ss. 120.536(1) and
625120.54 to administer this part.
626     817.927  Sunset review.--This part shall be reviewed by the
627Legislature before June 30, 2015, but does not expire and is not
628repealed if the Legislature does not take action before that
629date.
630     Section 3.  This act shall take effect July 1, 2009.


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