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Federal Deception Law: 12 U.S.C. § 5532. Disclosures

(a) In general

The Bureau may prescribe rules to ensure that the features of any consumer financial product or service, both initially and over the term of the product or service, are fully, accurately, and effectively disclosed to consumers in a manner that permits consumers to understand the costs, benefits, and risks associated with the product or service, in light of the facts and circumstances.

(b) Model disclosures

Federal Deception Law: 12 U.S.C. § 5533. Consumer rights to access information

(a) In general

Subject to rules prescribed by the Bureau, a covered person shall make available to a consumer, upon request, information in the control or possession of the covered person concerning the consumer financial product or service that the consumer obtained from such covered person, including information relating to any transaction, series of transactions, or to the account including costs, charges and usage data. The information shall be made available in an electronic form usable by consumers.

Federal Deception Law: 12 U.S.C. § 5536. Prohibited acts

(a) In general

It shall be unlawful for—

(1) any covered person or service provider—

(A) to offer or provide to a consumer any financial product or service not in conformity with Federal consumer financial law, or otherwise commit any act or omission in violation of a Federal consumer financial law; or

(B) to engage in any unfair, deceptive, or abusive act or practice;

Federal Deception Law: 12 U.S.C. § 5551. Relation to State law

(a) In general

(1) Rule of construction

This title, other than sections 1044 through 1048, may not be construed as annulling, altering, or affecting, or exempting any person subject to the provisions of this title from complying with, the statutes, regulations, orders, or interpretations in effect in any State, except to the extent that any such provision of law is inconsistent with the provisions of this title, and then only to the extent of the inconsistency.

Federal Deception Law: Listing of Provisions

15 U.S.C.

§ 8401 Findings; declaration of policy

§ 8402 Prohibitions against certain unfair and deceptive internet sales practices

§ 8403 Negative option marketing on the Internet

§ 8404 Enforcement by Federal Trade Commission

§ 8405 Enforcement by State attorneys general

Federal Deception Law: 15 U.S.C. § 8403. Negative option marketing on the internet

It shall be unlawful for any person to charge or attempt to charge any consumer for any goods or services sold in a transaction effected on the Internet through a negative option feature (as defined in the Federal Trade Commission’s Telemarketing Sales Rule in part 310 of title 16, Code of Federal Regulations), unless the person—

(1) provides text that clearly and conspicuously discloses all material terms of the transaction before obtaining the consumer’s billing information;

Federal Deception Law: I.1 Introduction

This appendix summarizes state debt relief statutes, and in particular state statutes that regulate debt-management plans, debt settlement, debt adjusting, debt pooling, and similar services. Appx. I.2, infra, summarizes the Uniform Debt-Management Services Act, a model act adopted in seven states.

Federal Deception Law: I.2.1 Introduction

The Uniform Law Commission (also known as the National Conference of Commissioners on Uniform State Laws) first adopted the Uniform Debt-Management Services Act in 2005.

Federal Deception Law: I.2.2 The Uniform Debt-Management Services Act (2011)

Scope & Key Definitions: Services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions, defined as assent to repayment of a debt on terms more favorable to the individual than the terms of the contract between the individual and the creditor. § 2.

Federal Deception Law: Arizona

Ariz. Rev. Stat. Ann. §§ 6-701 to 6-716

Administrator: Department of Insurance and Financial Institutions. § 6-101.

Scope & Key Definitions: Debt-management Companies: entities that, for compensation, engage in the business of receiving money or evidences thereof, in this state or from a resident of this state, as an agent of a debtor for the purpose of distribution to his creditors in payment or partial payment of his obligations. § 6-701.

Federal Deception Law: Arkansas

Ark. Code Ann. §§ 5-63-301 to 5-63-305

Administrator: Violations of this criminal statute may be prosecuted by attorney general or district attorney.

Scope & Key Definitions: Offering or contracting, for consideration, to receive money from debtor for distribution to creditors or act as an intermediary between debtor and creditors to negotiate settlement or alteration of terms of payment of debt. § 5-63-301.

Federal Deception Law: Colorado

This statute is based upon the 2008 version of the Uniform Debt-Management Services Act, summarized at Appx. I.2, supra, with variations as noted below.

Colo. Rev. Stat. §§ 5-19-201 to 5-19-242. This statute will sunset on September 1, 2024.

Administrator: Assistant Attorney General, designated by Attorney General to administer this statute. § 5-19-202.

Federal Deception Law: Connecticut

Connecticut has two statutes.

Conn. Gen. Stat. §§ 36a-655 to 36a-665. Note that this statute has been found to be unconstitutional to the extent that it permits the Banking Commissioner to regulate the practice of law.4

Administrator: Banking Commissioner. § 36a-2.

Federal Deception Law: Delaware

This statute is based upon the 2008 version of the Uniform Debt-Management Services Act, summarized at Appx. I.2, supra, with variations as noted below.

Del. Code Ann. tit. 6, §§ 2401A to 2439A

Administrator: Attorney General.

Scope & Key Definitions: Substantially similar to uniform act. § 2402A.

Federal Deception Law: Florida

Fla. Stat. §§ 817.801 to 817.806

Administrator: Not specified (criminal statute).

Scope & Key Definitions: Credit counseling: confidential money management, debt reduction or financial education services. Debt management: for a fee, seeking to effect the adjustment, compromise or discharge of unsecured debt, or receiving from debtor money or things of value for disbursement to creditors. § 817.801.

Federal Deception Law: Georgia

Ga. Code Ann. §§ 18-5-1 to 18-5-5

Administrator: Attorney General.

Scope & Key Definitions: Debt adjusting. For a fee, seeking to effect adjustment, compromise or discharge of a debt, or receiving funds from debtor for distribution to creditors. § 18-5-1.

Exceptions: Debt adjusting in the practice of law. Fannie Mae or Freddie Mac; regulated financial institutions. § 18-5-3.

Federal Deception Law: Hawaii

Haw. Rev. Stat. §§ 446-1 to 446-4

Administrator: Not specified (criminal statute).

Scope and Key Definitions: Debt adjustment: for profit, engages in the business of acting as an intermediary between a debtor and the debtor’s creditors for the purpose of settling, compromising, or in any way altering the terms of payment of any debts of the debtor and who

Federal Deception Law: Idaho

The debt-management provisions are part of a statute regulating collection agencies, debt counselors, credit counselors, and credit repair organizations.

Idaho Code §§ 26-2221 to 26-2251

Administrator: Department of Finance.

Federal Deception Law: Illinois

Illinois has two statutes, one for credit counselling and debt management and one for debt settlement.

205 Ill. Comp. Stat. §§ 665/2 to 665/22 (credit counseling and debt management)

Administrator: Secretary of Financial and Professional Regulation.