Bill Amendment: IL SB0669 | 2021-2022 | 102nd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: STUDENT LOAN DEBT RELIEF
Status: 2021-08-06 - Public Act . . . . . . . . . 102-0298 [SB0669 Detail]
Download: Illinois-2021-SB0669-Senate_Amendment_002.html
Bill Title: STUDENT LOAN DEBT RELIEF
Status: 2021-08-06 - Public Act . . . . . . . . . 102-0298 [SB0669 Detail]
Download: Illinois-2021-SB0669-Senate_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 669
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2 | AMENDMENT NO. ______. Amend Senate Bill 669 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Debt Settlement Consumer Protection Act is | ||||||
5 | amended by changing Sections 10, 105, 115, 125, and 145 as | ||||||
6 | follows:
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7 | (225 ILCS 429/10)
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8 | Sec. 10. Definitions. As used in this Act: | ||||||
9 | "Consumer" means any person who purchases or contracts for | ||||||
10 | the purchase of debt settlement services or a student loan | ||||||
11 | borrower . | ||||||
12 | "Consumer settlement account" means any account or other | ||||||
13 | means or device in which payments, deposits, or other | ||||||
14 | transfers from a consumer are arranged, held, or transferred | ||||||
15 | by or to a debt settlement provider for the accumulation of the | ||||||
16 | consumer's funds in anticipation of proffering an adjustment |
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1 | or settlement of a debt or obligation of the consumer to a | ||||||
2 | creditor on behalf of the consumer. | ||||||
3 | "Debt settlement provider" means : (1) any person or entity | ||||||
4 | engaging in, or holding itself out as engaging in, the | ||||||
5 | business of providing debt settlement service in exchange for | ||||||
6 | any fee or compensation ; (2) , or any person who solicits for or | ||||||
7 | acts on behalf of any person or entity engaging in, or holding | ||||||
8 | itself out as engaging in, the business of providing debt | ||||||
9 | settlement service in exchange for any fee or compensation ; | ||||||
10 | (3) any person or entity engaging in, or holding itself out as | ||||||
11 | engaging in the business of student loan debt relief services | ||||||
12 | in exchange for any fee or compensation assessed against or | ||||||
13 | charged to a consumer; or (4) any person who solicits for or | ||||||
14 | acts on behalf of such person or entity engaging in or holding | ||||||
15 | itself out as engaging in, the business of student loan debt | ||||||
16 | relief services in exchange for any fee or compensation | ||||||
17 | assessed against or charged to a consumer . "Debt settlement | ||||||
18 | provider" does not include: | ||||||
19 | (1) attorneys licensed, or otherwise authorized, to | ||||||
20 | practice in Illinois who are engaged in the practice of | ||||||
21 | law;
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22 | (2) escrow agents, accountants, broker dealers in | ||||||
23 | securities, or investment advisors in securities, when | ||||||
24 | acting in the ordinary practice of their professions and | ||||||
25 | through the entity used in the ordinary practice of their | ||||||
26 | profession;
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1 | (3) any bank, agent of a bank, operating subsidiary of | ||||||
2 | a bank, affiliate of a bank, trust company, savings and | ||||||
3 | loan association, savings bank, credit union, crop credit | ||||||
4 | association, development credit corporation, industrial | ||||||
5 | development corporation, title insurance company, title | ||||||
6 | insurance agent, independent escrowee or insurance company | ||||||
7 | operating or organized under the laws of a state or the | ||||||
8 | United States, or any other person authorized to make | ||||||
9 | loans under State law while acting in the ordinary | ||||||
10 | practice of that business;
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11 | (4) any person who performs credit services for his or | ||||||
12 | her employer while receiving a regular salary or wage when | ||||||
13 | the employer is not engaged in the business of offering or | ||||||
14 | providing debt settlement service;
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15 | (5) a collection agency licensed pursuant to the | ||||||
16 | Collection Agency Act that is collecting a debt on its own | ||||||
17 | behalf or on behalf of a third party; | ||||||
18 | (6) an organization that is described in Section | ||||||
19 | 501(c)(3) and subject to Section 501(q) of Title 26 of the | ||||||
20 | United States Code and exempt from tax under Section | ||||||
21 | 501(a) of Title 26 of the United States Code and governed | ||||||
22 | by the Debt Management Service Act;
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23 | (7) public officers while acting in their official | ||||||
24 | capacities and persons acting under court order;
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25 | (8) any person while performing services incidental to | ||||||
26 | the dissolution, winding up, or liquidating of a |
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1 | partnership, corporation, or other business enterprise; or | ||||||
2 | (9) persons licensed under the Real Estate License Act | ||||||
3 | of 2000 when acting in the ordinary practice of their | ||||||
4 | profession and not holding themselves out as debt | ||||||
5 | settlement providers ; or . | ||||||
6 | (10) any institution of higher education as defined in | ||||||
7 | the Higher Education Act of 1965, 20 U.S.C. 1001. | ||||||
8 | "Debt settlement service" means:
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9 | (1) offering to provide advice or service, or acting | ||||||
10 | as an intermediary between or on behalf of a consumer and | ||||||
11 | one or more of a consumer's creditors, where the primary | ||||||
12 | purpose of the advice, service, or action is to obtain a | ||||||
13 | settlement, adjustment, or satisfaction of the consumer's | ||||||
14 | unsecured debt to a creditor in an amount less than the | ||||||
15 | full amount of the principal amount of the debt or in an | ||||||
16 | amount less than the current outstanding balance of the | ||||||
17 | debt; or
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18 | (2) offering to provide services related to or | ||||||
19 | providing services advising, encouraging, assisting, or | ||||||
20 | counseling a consumer to accumulate funds for the primary | ||||||
21 | purpose of proposing or obtaining or seeking to obtain a | ||||||
22 | settlement, adjustment, or satisfaction of the consumer's | ||||||
23 | unsecured debt to a creditor in an amount less than the | ||||||
24 | full amount of the principal amount of the debt or in an | ||||||
25 | amount less than the current outstanding balance of the | ||||||
26 | debt ; or . |
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1 | (3) student loan debt relief. | ||||||
2 | "Debt settlement service" does not include (A) the | ||||||
3 | services of attorneys licensed, or otherwise authorized, to | ||||||
4 | practice in Illinois who are engaged in the practice of law , or | ||||||
5 | (B) debt management service as defined in the Debt Management | ||||||
6 | Service Act , (C) the services of a student loan servicer, as | ||||||
7 | defined in the Student Loan Servicing Rights Act, or (D) the | ||||||
8 | services of any other originator, guarantor, or servicer of | ||||||
9 | federal education loans or private education loans . | ||||||
10 | "Enrollment or set up fee" means any fee, obligation, or | ||||||
11 | compensation paid or to be paid by the consumer to a debt | ||||||
12 | settlement provider in consideration of or in connection with | ||||||
13 | establishing a contract or other agreement with a consumer | ||||||
14 | related to the provision of debt settlement service. | ||||||
15 | "Federal education loan" means any loan made, guaranteed, | ||||||
16 | or insured under Title IV of the federal Higher Education Act | ||||||
17 | of 1965. | ||||||
18 | "Maintenance fee" means any fee, obligation, or | ||||||
19 | compensation paid or to be paid by the consumer on a periodic | ||||||
20 | basis to a debt settlement provider in consideration of | ||||||
21 | maintaining the relationship and services to be provided by a | ||||||
22 | debt settlement provider in accordance with a contract with a | ||||||
23 | consumer related to the provision of debt settlement service. | ||||||
24 | "Principal amount of the debt" means the total amount or | ||||||
25 | outstanding balance owed by a consumer to one or more | ||||||
26 | creditors for a debt that is included in a contract for debt |
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1 | settlement service at the time when the consumer enters into a | ||||||
2 | contract for debt settlement service. | ||||||
3 | "Savings" means the difference between the principal | ||||||
4 | amount of the debt and the amount paid by the debt settlement | ||||||
5 | provider to the creditor or negotiated by the debt settlement | ||||||
6 | provider and paid by the consumer to the creditor pursuant to a | ||||||
7 | settlement negotiated by the debt settlement provider on | ||||||
8 | behalf of the consumer as full and complete satisfaction of | ||||||
9 | the creditor's claim with regard to that debt. | ||||||
10 | "Secretary" means the Secretary of Financial and | ||||||
11 | Professional Regulation. | ||||||
12 | "Settlement fee" means any fee, obligation, or | ||||||
13 | compensation paid or to be paid by the consumer to a debt | ||||||
14 | settlement provider in consideration of or in connection with | ||||||
15 | a completed agreement or other arrangement on the part of a | ||||||
16 | creditor to accept less than the principal amount of the debt | ||||||
17 | as satisfaction of the creditor's claim against the consumer.
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18 | "Student loan borrower" means a person who has received or | ||||||
19 | agreed to pay a student loan for his or her own educational | ||||||
20 | expenses; a parent, grandparent, or other family member who | ||||||
21 | has received or agreed to pay a student loan for a family | ||||||
22 | member receiving the education; or any co-signer who has | ||||||
23 | agreed to share responsibility for repaying a student loan | ||||||
24 | with the person receiving the education. | ||||||
25 | "Student loan debt relief" means, in exchange for any fee | ||||||
26 | or compensation assessed against or charged to a student loan |
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1 | borrower, offering to provide advice or service, or acting as | ||||||
2 | an intermediary between or on behalf of a consumer and the | ||||||
3 | United States Department of Education or any other originator | ||||||
4 | or guarantor of federal education loans or one or more of the | ||||||
5 | servicers of a student loan borrowers' federal education loan, | ||||||
6 | where the primary purpose of the advice, service, or action is | ||||||
7 | to (1) negotiate, arrange, or obtain a settlement, adjustment, | ||||||
8 | discharge, or satisfaction of the student loan borrower's | ||||||
9 | federal education loan debt in an amount less than the full | ||||||
10 | amount of the principal amount of the debt, a reduction or | ||||||
11 | alteration to the interest rate, a reduction or alteration in | ||||||
12 | the amount of monthly payment or fees owed, or in an amount | ||||||
13 | less than the current outstanding balance of the debt, (2) | ||||||
14 | enroll the student loan borrower in a repayment plan, | ||||||
15 | forbearance, or deferment of his or her federal education loan | ||||||
16 | debt, (3) apply for consolidation or consolidate the student | ||||||
17 | loan borrower's federal education loans, or (4) offer to | ||||||
18 | provide any other services related to altering the terms of a | ||||||
19 | student loan borrower's federal education loan debt, | ||||||
20 | including, but not limited to, a reduction in the amount of | ||||||
21 | interest, the principal balance, or the amount of monthly | ||||||
22 | payment or fees owed. | ||||||
23 | (Source: P.A. 96-1420, eff. 8-3-10.)
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24 | (225 ILCS 429/105)
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25 | Sec. 105. Advertising and marketing practices. |
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1 | (a) A debt settlement provider shall not represent, | ||||||
2 | expressly or by implication, any results or outcomes of its | ||||||
3 | debt settlement services in any advertising, marketing, or | ||||||
4 | other communication to consumers unless the debt settlement | ||||||
5 | provider possesses substantiation for such representation at | ||||||
6 | the time such representation is made.
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7 | (b) A debt settlement provider shall not, expressly or by | ||||||
8 | implication, make any unfair or deceptive representations, or | ||||||
9 | any omissions of material facts, in any of its advertising or | ||||||
10 | marketing communications concerning debt settlement services.
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11 | (c) All advertising and marketing communications | ||||||
12 | concerning debt settlement services shall disclose the | ||||||
13 | following material information clearly and conspicuously:
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14 | "Debt settlement services are not appropriate for | ||||||
15 | everyone. Failure to pay your monthly bills in a timely | ||||||
16 | manner will result in increased balances and will harm | ||||||
17 | your credit rating. Not all creditors will agree to reduce | ||||||
18 | principal balance, and they may pursue collection, | ||||||
19 | including lawsuits."
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20 | (d) All advertising and marketing communications | ||||||
21 | concerning student loan debt relief services shall disclose | ||||||
22 | the following material information clearly and conspicuously, | ||||||
23 | along with the legally registered name of the company: | ||||||
24 | "[Name of company] is a private company, and is not | ||||||
25 | affiliated with the Department of Education or any other | ||||||
26 | academic entity or governmental agency. [Name of company] |
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1 | is not a lender, guarantor, or servicer of federal student | ||||||
2 | loans. You can apply for consolidation and other repayment | ||||||
3 | plans without paid assistance through the United States | ||||||
4 | Department of Education. More information is available | ||||||
5 | through the Department's website or your federal student | ||||||
6 | loan servicer. You can find out who your servicer is | ||||||
7 | through the Department of Education.". | ||||||
8 | (Source: P.A. 96-1420, eff. 8-3-10.)
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9 | (225 ILCS 429/115)
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10 | Sec. 115. Required pre-sale consumer disclosures and | ||||||
11 | warnings. | ||||||
12 | (a) Before the consumer signs a contract, the debt | ||||||
13 | settlement provider shall provide an oral and written notice | ||||||
14 | to the consumer that clearly and conspicuously discloses all | ||||||
15 | of the following:
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16 | (1) Debt settlement services may not be suitable for | ||||||
17 | all consumers. | ||||||
18 | (2) Using a debt settlement service likely will harm | ||||||
19 | the consumer's credit history and credit score.
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20 | (3) Using a debt settlement service does not stop | ||||||
21 | creditor collection activity, including creditor lawsuits | ||||||
22 | and garnishments. | ||||||
23 | (4) Not all creditors will accept a reduction in the | ||||||
24 | balance, interest rate, or fees a consumer owes.
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25 | (5) The consumer should inquire about other means of |
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1 | dealing with debt, including, but not limited to, | ||||||
2 | nonprofit credit counseling and bankruptcy.
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3 | (6) The consumer remains obligated to make periodic or | ||||||
4 | scheduled payments to creditors while participating in a | ||||||
5 | debt settlement plan, and that the debt settlement | ||||||
6 | provider will not make any periodic or scheduled payments | ||||||
7 | to creditors on behalf of the consumer.
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8 | (7) The failure to make periodic or scheduled payments | ||||||
9 | to a creditor is likely to:
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10 | (A) harm the consumer's credit history, credit | ||||||
11 | rating, or credit score;
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12 | (B) lead the creditor to increase lawful | ||||||
13 | collection activity, including litigation, garnishment | ||||||
14 | of the consumer's wages, and judgment liens on the | ||||||
15 | consumer's property; and
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16 | (C) lead to the imposition by the creditor of | ||||||
17 | interest charges, late fees, and other penalty fees, | ||||||
18 | increasing the principal amount of the debt. | ||||||
19 | (8) The amount of time estimated to be necessary to | ||||||
20 | achieve the represented results.
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21 | (9) The estimated amount of money or the percentage of | ||||||
22 | debt the consumer must accumulate before a settlement | ||||||
23 | offer will be made to each of the consumer's creditors.
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24 | (10) For student loan debt relief services, before the | ||||||
25 | student loan borrower signs a contract, the provider shall | ||||||
26 | provide an oral and written notice to the student loan |
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1 | borrower that clearly and conspicuously discloses the | ||||||
2 | following: | ||||||
3 | "[Name of company] is a private company, and is | ||||||
4 | not affiliated with the Department of Education or any | ||||||
5 | other academic entity or governmental agency. [Name of | ||||||
6 | company] is not a lender, guarantor, or servicer of | ||||||
7 | federal student loans. You can apply for consolidation | ||||||
8 | and other repayment plans without paid assistance | ||||||
9 | through the United States Department of Education. | ||||||
10 | More information is available through the Department's | ||||||
11 | website or your federal student loan servicer. You can | ||||||
12 | find out who your servicer is through the Department | ||||||
13 | of Education.". | ||||||
14 | (b) The consumer shall sign and date an acknowledgment | ||||||
15 | form entitled "Consumer Notice and Rights Form" that states: | ||||||
16 | "I, the debtor, have received from the debt settlement | ||||||
17 | provider a copy of the form entitled "Consumer Notice and | ||||||
18 | Rights Form"." The debt settlement provider or its | ||||||
19 | representative shall also sign and date the acknowledgment | ||||||
20 | form, which includes the name and address of the debt | ||||||
21 | settlement services provider. The acknowledgment form shall be | ||||||
22 | in duplicate and incorporated into the "Consumer Notice and | ||||||
23 | Rights Form". The original acknowledgment form shall be | ||||||
24 | retained by the debt settlement provider, and the duplicate | ||||||
25 | copy shall be retained within the form by the consumer.
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26 | If the acknowledgment form is in electronic form, then it |
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1 | shall contain the consumer disclosures required by Section | ||||||
2 | 101(c) of the federal Electronic Signatures in Global and | ||||||
3 | National Commerce Act. | ||||||
4 | (c) Except as provided in subsection (d), the The | ||||||
5 | requirements of this Section are satisfied if the provider | ||||||
6 | provides the following warning verbatim, both orally and in | ||||||
7 | writing, with the caption "CONSUMER NOTICE AND RIGHTS FORM" in | ||||||
8 | at least 28-point font and the remaining portion in at least | ||||||
9 | 14-point font, to a consumer before the consumer signs a | ||||||
10 | contract for the debt settlement provider's services:
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11 | "CONSUMER NOTICE AND RIGHTS FORM | ||||||
12 | CAUTION | ||||||
13 | We CANNOT GUARANTEE that you successfully will reduce or | ||||||
14 | eliminate your debt. | ||||||
15 | If you stop paying your creditors, there is a strong | ||||||
16 | likelihood some or all of the following may happen: | ||||||
17 | - CREDITORS MAY STILL CONTACT YOU AND TRY TO COLLECT. | ||||||
18 | - CREDITORS MAY STILL SUE YOU FOR THE MONEY YOU OWE.
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19 | - YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED.
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20 | - YOUR CREDIT RATING AND CREDIT SCORE LIKELY WILL BE | ||||||
21 | HARMED. | ||||||
22 | - NOT ALL CREDITORS WILL AGREE TO ACCEPT A BALANCE | ||||||
23 | REDUCTION. | ||||||
24 | - YOU SHOULD CONSIDER ALL YOUR OPTIONS FOR ADDRESSING YOUR |
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1 | DEBT, SUCH AS CREDIT COUNSELING AND BANKRUPTCY FILING.
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2 | - THE AMOUNT OF MONEY YOU OWE MAY INCREASE DUE TO CREDITOR | ||||||
3 | IMPOSITION OF INTEREST CHARGES, LATE FEES, AND OTHER PENALTY | ||||||
4 | FEES.
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5 | - EVEN IF WE DO SETTLE YOUR DEBT, YOU MAY STILL BE REQUIRED | ||||||
6 | TO PAY TAXES ON THE AMOUNT FORGIVEN.
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7 | YOUR RIGHT TO CANCEL | ||||||
8 | If you sign a contract with a Debt Settlement Provider, | ||||||
9 | you have the right to cancel at any time and receive a full | ||||||
10 | refund of all unearned fees you have paid to the provider and | ||||||
11 | all funds placed in your settlement fund that have not been | ||||||
12 | paid to any creditors.
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13 | IF YOU ARE DISSATISFIED
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14 | OR YOU HAVE QUESTIONS | ||||||
15 | If you are dissatisfied with a debt settlement provider or | ||||||
16 | have any questions, please bring it to the attention of the | ||||||
17 | Illinois Attorney General's Office and the Department of | ||||||
18 | Financial and Professional Regulation. | ||||||
19 | Attorney General Toll-Free Numbers:
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20 | Carbondale (800) 243-0607 | ||||||
21 | Springfield (800) 243-0618
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22 | Chicago (800) 386-5438 | ||||||
23 | Website for Department of Financial and Professional | ||||||
24 | Regulation: www.idfpr.com |
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1 | I, the debtor, have received from the debt settlement provider | ||||||
2 | a copy of the form entitled Consumer Notice and Rights Form.".
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3 | (d) All providers of student loan debt relief services | ||||||
4 | shall include the following disclosure: | ||||||
5 | "[NAME OF COMPANY] IS A PRIVATE COMPANY, AND IS NOT | ||||||
6 | AFFILIATED WITH THE DEPARTMENT OF EDUCATION OR ANY OTHER | ||||||
7 | ACADEMIC ENTITY OR GOVERNMENTAL AGENCY. [NAME OF COMPANY] | ||||||
8 | IS NOT A LENDER, GUARANTOR, OR SERVICER OF FEDERAL STUDENT | ||||||
9 | LOANS. YOU CAN APPLY FOR CONSOLIDATION AND OTHER REPAYMENT | ||||||
10 | PLANS WITHOUT PAID ASSISTANCE THROUGH THE UNITED STATES | ||||||
11 | DEPARTMENT OF EDUCATION. MORE INFORMATION IS AVAILABLE | ||||||
12 | THROUGH THE DEPARTMENT'S WEBSITE OR YOUR FEDERAL STUDENT | ||||||
13 | LOAN SERVICER. YOU CAN FIND OUT WHO YOUR SERVICER IS | ||||||
14 | THROUGH THE DEPARTMENT OF EDUCATION.". | ||||||
15 | (Source: P.A. 96-1420, eff. 8-3-10.)
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16 | (225 ILCS 429/125)
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17 | Sec. 125. Fees. | ||||||
18 | (a) A debt settlement provider shall not charge fees of | ||||||
19 | any type or receive compensation from a consumer in a type, | ||||||
20 | amount, or timing other than fees or compensation permitted in | ||||||
21 | this Section.
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22 | (b) A debt settlement provider shall not charge or receive | ||||||
23 | from a consumer any enrollment fee, set up fee, up front fee of | ||||||
24 | any kind, or any maintenance fee, except for a one-time | ||||||
25 | enrollment fee of no more than $50.
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1 | (c) A debt settlement provider may charge a settlement | ||||||
2 | fee, which shall not exceed an amount greater than 15% of the | ||||||
3 | savings. If the amount paid by the debt settlement provider to | ||||||
4 | the creditor or negotiated by the debt settlement provider and | ||||||
5 | paid by the consumer to the creditor pursuant to a settlement | ||||||
6 | negotiated by the debt settlement provider on behalf of the | ||||||
7 | consumer as full and complete satisfaction of the creditor's | ||||||
8 | claim with regard to that debt is greater than the principal | ||||||
9 | amount of the debt, then the debt settlement provider shall | ||||||
10 | not be entitled to any settlement fee.
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11 | (d) A debt settlement provider shall not collect any | ||||||
12 | settlement fee from a consumer until a creditor enters into a | ||||||
13 | legally enforceable agreement to accept funds in a specific | ||||||
14 | dollar amount as full and complete satisfaction of the | ||||||
15 | creditor's claim with regard to that debt and those funds are | ||||||
16 | provided by the debt settlement provider on behalf of the | ||||||
17 | consumer or are provided directly by the consumer to the | ||||||
18 | creditor pursuant to a settlement negotiated by the debt | ||||||
19 | settlement provider.
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20 | (e) Any fees charged to a student loan borrower in | ||||||
21 | exchange for student loan debt relief shall comply with this | ||||||
22 | Section. | ||||||
23 | (Source: P.A. 96-1420, eff. 8-3-10; 97-333, eff. 8-12-11.)
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24 | (225 ILCS 429/145)
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25 | Sec. 145. Prohibited practices. A debt settlement provider |
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1 | shall not do any of the following:
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2 | (1) Charge or collect from a consumer any fee not | ||||||
3 | permitted by, in an amount in excess of the maximum amount | ||||||
4 | permitted by, or at a time earlier than permitted by | ||||||
5 | Section 125 of this Act.
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6 | (2) Advise or represent, expressly or by implication, | ||||||
7 | that consumers should stop making payments to their | ||||||
8 | creditors , lenders, loan servicers, or loan guarantors or | ||||||
9 | government entities .
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10 | (3) Advise or represent, expressly or by implication, | ||||||
11 | that consumers should stop communicating with their | ||||||
12 | creditors , lenders, loan servicers, loan guarantors, or | ||||||
13 | attorneys or government entities . | ||||||
14 | (4) Change the mailing address on any of a consumer's | ||||||
15 | creditor's statements.
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16 | (5) Make loans or offer credit or solicit or accept | ||||||
17 | any note, mortgage, or negotiable instrument other than a | ||||||
18 | check signed by the consumer and dated no later than the | ||||||
19 | date of signature.
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20 | (6) Take any confession of judgment or power of | ||||||
21 | attorney to confess judgment against the consumer or | ||||||
22 | appear as the consumer or on behalf of the consumer in any | ||||||
23 | judicial proceedings.
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24 | (7) Take any release or waiver of any obligation to be | ||||||
25 | performed on the part of the debt settlement provider or | ||||||
26 | any right of the consumer.
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1 | (8) Advertise, display, distribute, broadcast, or | ||||||
2 | televise services or permit services to be displayed, | ||||||
3 | advertised, distributed, broadcasted, or televised, in any | ||||||
4 | manner whatsoever, that contains any false, misleading, or | ||||||
5 | deceptive statements or representations with regard to any | ||||||
6 | matter, including services to be performed, the fees to be | ||||||
7 | charged by the debt settlement provider, or the effect | ||||||
8 | those services will have on a consumer's credit rating or | ||||||
9 | on creditor collection efforts.
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10 | (9) Receive any cash, fee, gift, bonus, premium, | ||||||
11 | reward, or other compensation from any person other than | ||||||
12 | the consumer explicitly for the provision of debt | ||||||
13 | settlement service to that consumer.
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14 | (10) Offer or provide gifts or bonuses to consumers | ||||||
15 | for signing a debt settlement service contract or for | ||||||
16 | referring another potential customer or customer.
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17 | (11) Disclose to anyone the name or any personal | ||||||
18 | information of a consumer for whom the debt settlement | ||||||
19 | provider has provided or is providing debt settlement | ||||||
20 | service other than to a consumer's own creditors or the | ||||||
21 | debt settlement provider's agents, affiliates, or | ||||||
22 | contractors for the purpose of providing debt settlement | ||||||
23 | service without the prior consent of the consumer.
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24 | (12) Enter into a contract with a consumer without | ||||||
25 | first providing the disclosures and financial analysis and | ||||||
26 | making the determinations required by this Section.
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1 | (13) Misrepresent any material fact, make a material | ||||||
2 | omission, or make a false promise directed to one or more | ||||||
3 | consumers in connection with the solicitation, offering, | ||||||
4 | contracting, or provision of debt settlement service.
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5 | (14) Violate the provisions of applicable do not call | ||||||
6 | statutes. | ||||||
7 | (15) Purchase debts or engage in the practice or | ||||||
8 | business of debt collection.
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9 | (16) Include in a debt settlement agreement any | ||||||
10 | secured debt.
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11 | (17) Employ an unfair, unconscionable, or deceptive | ||||||
12 | act or practice, including the knowing omission of any | ||||||
13 | material information.
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14 | (18) Engage in any practice that prohibits or limits | ||||||
15 | the consumer or any creditor from communication directly | ||||||
16 | with one another. | ||||||
17 | (19) Represent or imply to a person participating in | ||||||
18 | or considering debt settlement that purchase of any | ||||||
19 | ancillary goods or services is required.
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20 | (20) Access or obtain a consumer's or student loan | ||||||
21 | borrower's federal student aid information in violation of | ||||||
22 | federal law. | ||||||
23 | (Source: P.A. 96-1420, eff. 8-3-10.)
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.".
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