Debt settlement services; civil penalties. (HB2196)

Introduced By

Del. Debra Rodman (D-Henrico)

Description

Debt settlement services; civil penalties. Establishes procedures and requirements for the licensure by the State Corporation Commission of agencies providing debt settlement services. The measure defines debt settlement services as any action or negotiation initiated or taken by or on behalf of any consumer with any creditor of the consumer for the purpose of obtaining debt forgiveness of a portion of the credit extended by the creditor to the consumer or reduction of payments, charges, or fees payable by the consumer. The measure authorizes the Commission to issue one license to engage in the business of providing or offering to provide debt management plans, debt settlement services, or both. The measure prohibits licensed debt settlement services agencies from accepting fees from consumers prior to providing the consumers' requested debt settlement services. The measure makes licensees offering debt settlement services subject to requirements currently applicable to licensees providing debt management plans. The measure also (i) prohibits certain advertising practices by new licensees, (ii) provides for the assessment of civil penalties, and (iii) grants individual consumers a private right of action. Violations are also a prohibited practice under the Virginia Consumer Protection Act. Read the Bill »

Outcome

History