Bill Text: AZ SB1440 | 2020 | Fifty-fourth Legislature 2nd Regular | Introduced
Bill Title: Credit services organizations
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2020-05-20 - Assigned to House RULES Committee [SB1440 Detail]
Download: Arizona-2020-SB1440-Introduced.html
|
REFERENCE TITLE: credit services organizations |
|
State of Arizona Senate Fifty-fourth Legislature Second Regular Session 2020
|
|
SB 1440 |
|
|
|
Introduced by Senator Leach
|
AN ACT
amending section 44‑1703, Arizona Revised Statutes; amending title 44, chapter 11, article 7, Arizona Revised Statutes, by adding SECTION 44‑1713; relating to credit services.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-1703, Arizona Revised Statutes, is amended to read:
44-1703. Credit services organizations; prohibited activities
A credit services organization and its salespersons, agents and representatives who sell or attempt to sell the services of a credit services organization shall not do any of the following:
1. Charge or receive monies or other valuable consideration before full and complete performance of the services the credit services organization has agreed to perform for or on behalf of the buyer, unless the credit services organization, in conformity with section 44‑1708, has obtained a surety bond issued by a surety company authorized to do business in this state. If a credit services organization is in compliance with this paragraph, the salesperson, agents and representatives who sell the services of the organization are not required to obtain the surety bond provided for in section 44‑1708.
2. Charge or receive monies or other valuable consideration solely for referral of the buyer to a retail seller who will or may extend credit to the buyer, if the credit which that is or will be extended to the buyer is on substantially the same terms as those available to the general public.
3. Make or counsel or advise a buyer to make any statement which that is untrue or misleading and which that is known, or which that by the exercise of reasonable care should be known, to be untrue or misleading to a consumer credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit, with respect to a buyer's credit worthiness, credit standing or credit capacity.
4. Make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization, or including:
(a) Guaranteeing to erase or improve bad credit unless the representation clearly discloses that this can be done only if a person's credit history is inaccurate or obsolete.
(b) Guaranteeing an extension of credit regardless of the buyer's previous credit history unless the representation clearly discloses the eligibility requirements for obtaining the extension of credit.
(c) Requiring that a buyer waive a right that is protected by state or federal law.
5. Engage, directly or indirectly, in an act, practice or course of business which that operates or would operate as a fraud or deception on a person in connection with the offer or sale of the services of a credit services organization, including:
(a) Taking a power of attorney from a buyer for any purpose other than inspecting documents as provided by law.
(b) Failing to include all of the information that is required by section 44‑1713 on all communications from the credit services organization to buyers, data furnishers, creditors and credit reporting agencies.
Sec. 2. Title 44, chapter 11, article 7, Arizona Revised Statutes, is amended by adding section 44-1713, to read:
44-1713. Communication requirements; applicability
A. All written communications from a credit services organization to buyers, data furnishers, creditors and credit reporting agencies shall include all of the following:
1. The complete name and address of the credit services organization.
2. A statement that the communication is from a credit services organization.
B. This section applies only to communications that are sent from and after the effective date of this section.
