Skip to main content

Search

Federal Deception Law: Indiana

Indiana has two statutes, one covering budget counseling and debt management, and one covering debt settlement.

Ind. Code §§ 28-1-29-0.5 to 28-1-29-18 (budget counseling and debt management)

Administrator: Department of Financial Institutions.

Federal Deception Law: Kansas

Kansas has two statutes, a credit services organizations statute and a criminal statute forbidding debt adjusting by anyone except licensed CSOs and attorneys.

Kan. Stat. Ann. § 21-6502 (criminal statute)

Administrator: Not specified.

Scope & Key Definitions: Criminal statute, which forbids debt adjusting: for consideration, receiving funds from debtor and making distributions among specified creditors.

Federal Deception Law: Kentucky

Ky. Rev. Stat. Ann. §§ 380.010 to 380.990 (West)

Administrator: Attorney General.

Scope & Key Definitions: Debt adjusting, budget counseling, debt management, debt modification or settlement, debt pooling, offering for a fee to serve as an intermediary between debtor and creditors, receive money to disburse to creditors, or seek adjustment, compromise, settlement, modification or discharge of debt. Foreclosure prevention explicitly included. § 380.010

Federal Deception Law: Louisiana

Louisiana has two statutes, a credit services act and a criminal statute forbidding unlicensed for-profit debt adjusting.

La. Stat. Ann. § 14:331 (criminal statute)

Administrator: Not specified.

Scope & Key Definitions: Criminal statute forbidding for-profit debt adjusting. For a fee, taking funds for disbursement to debtor’s creditors, or seeking to effect the adjustment, compromise or discharge of debt.

Federal Deception Law: Maine

Maine has two statutes, a debt-management services statute and criminal statute forbidding unregistered debt management. In addition, its debt collection practices act makes an exception for certain credit counseling organizations.

Me. Stat. tit. 17, §§ 701 to 703 (criminal statute)

Administrator: Not specified.

Scope & Key Definitions: Criminal statute, forbidding budget planning, making a contract with debtor pursuant to which debtor makes periodic payments to planner, who distributes the funds among specified creditors. § 702.

Federal Deception Law: Maryland

Maryland has two statutes, debt management and debt settlement.

Md. Code Ann., Fin. Inst. §§ 12-901 to 12-931 (West) (debt management)

Administrator: Commissioner of Financial Regulation in the Department of Labor, Licensing and Regulation. § 1-101.

Scope & Key Definitions: Debt Management. Receiving funds from a consumer for distribution to creditors in full or partial payment of debts. § 12-901(g).

Federal Deception Law: Massachusetts

Massachusetts has two statutes, one permitting debt pooling by nonprofits and a criminal statute forbidding debt pooling by anyone other than licensed attorneys or nonprofits. In addition, its state debt collection statute makes an exception for certain credit counseling organizations.

Mass. Gen. Laws ch. 180, § 4A

Administrator: Attorney General. Mass. Gen. Laws ch. 12, § 8F.

Federal Deception Law: Michigan

Mich. Comp. Laws §§ 451.411 to 451.436

Administrator: Department of Insurance and Financial Services. 451.412.

Scope & Key Definitions: Debt Management: planning and management of debtor’s financial affairs and receipt of money from debtor for distribution in payment or partial payment of debts. § 451.412.

Federal Deception Law: Minnesota

Minnesota has two statutes: debt management and debt settlement.

Minn. Stat. §§ 332A.02 to 332A.19 (debt management)

Administrator: Commissioner of Commerce.

Scope & Key Definitions: Debt Management: Whether or not a fee is charged, managing the financial affairs of a debtor by receiving funds from the debtor and directing periodic payments to creditors with the primary purpose to effect the full payment of consumer debts. § 332A.02.

Federal Deception Law: Mississippi

This statute is scheduled to sunset on July 1, 2022. § 8-22-31.

Miss. Code Ann. §§ 81-22-1 to 81-22-31.

Administrator: Department of Banking and Consumer Finance.

Federal Deception Law: Missouri

Mo. Rev. Stat. §§ 425.010 to 425.043

Scope & Key Definitions: For consideration, providing debt relief services seeing to renegotiate, settle, or otherwise alter the terms of debt. § 425.010.

Federal Deception Law: Montana

Montana has two statutes: debt management and debt settlement.

Mont. Code Ann. §§ 30-14-2001 to 30-14-2015 (debt management)

Administrator: Department of Justice.

Scope & Key Definitions: Credit counseling services: For a fee, providing debt-management services to consumers. Debt management services are the receipt of money from consumers, pursuant to a written agreement, for distribution to creditors in full or partial payment of debts. §§ 30-14-2002, § 30-14-2003.

Federal Deception Law: Nebraska

Neb. Rev. Stat. §§ 69-1201 to 69-1217

Administrator: Secretary of State.

Scope & Key Definitions: Debt Management: For a fee, the planning and management of financial affairs of a debtor who is a wage earner whose principal income is derived from wages, salary or commission, by receiving money from debtor for disbursement to creditors in full or partial payment of debts. § 69-1201.

Federal Deception Law: Nevada

Nevada has two relevant statutes. The primary 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. In addition, the state collection agency statute places some restrictions on the relationship between collection agencies and debt counseling services.

Nev. Rev. Stat. §§ 676A.010 to 676A.780

Federal Deception Law: New Jersey

New Jersey has two statutes, a criminal statute forbidding unlicensed debt adjustment, and a statute allowing debt adjusting and credit counseling by certain nonprofits.

N.J. Stat. Ann. § 2C:21-19(f) (West) (criminal statute)

Administrator: Not specified.

Scope & Key Definitions: Debt adjusting as defined in chapter 17:16G. (see below).

Exceptions: See below.

Registration/Licensing: Not specified.

Disclosures: Not specified.

Pre-Agreement Services: Not specified.

Federal Deception Law: New Mexico

N.M. Stat. Ann. §§ 56-2-1 to 56-2-4.

Administrator: Attorney general. § 56-2-2.

Scope and Key Definitions: Debt adjusting: for consideration, acting as an intermediary between individual debtor and creditors, to settle, compound or alter the terms of any debt, and receiving money from the debtor for payment to or distribution among creditors. § 56-2-1.

Federal Deception Law: New York

New York has two statutes: a criminal statute generally forbidding budget planning, and a statute allowing budget planning by licensed nonprofits.

N.Y. Gen. Bus. Law §§ 455–457 (McKinney) (criminal statute)

Administrator: Not specified.

Scope & Key Definitions: Budget planning forbidden: For compensation, accepting funds from debtor for distribution to creditors. § 455

Federal Deception Law: North Carolina

N.C. Gen. Stat. §§ 14-423 to 14-426

Administrator: Commissioner of Banks.

Scope & Key Definitions: Debt adjusting: for consideration, acting as an intermediary between debtor and creditors, for purpose of holding and distributing funds to creditors, or negotiating settlement of debts. Foreclosure assistance explicitly included. § 14-423.

Federal Deception Law: North Dakota

North Dakota has two statutes: consumer credit counseling and debt settlement. The debt settlement 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.

N.D. Cent. Code §§ 13-07-01 to 13-07-07 (consumer credit counseling)

Administrator: Attorney General.

Federal Deception Law: Ohio

In addition, a state statute prohibits garnishment for debtors who are participating in debt management plans with certain credit counseling organizations.

Ohio Rev. Code Ann. §§ 4710.01 to 4710.99 (West)

Administrator: Attorney General.

Scope & Key Definitions: Debt adjusting, budget counseling, debt management or debt pooling. Effecting the compromise of debts, or receiving from debtor funds for distribution to creditors. § 4710.01.

Federal Deception Law: Oklahoma

Okla. Stat. tit. 24, §§ 15 to 18

Administrator: Not specified (criminal statute).

Scope and key definitions: Debt pooling. For consideration, making a contract with a debtor by which debtor agrees to make periodic payments to debt pooler for distribution among debtors according to an agreed-upon plan. § 16.

Exceptions: Licensed attorneys distributing funds on behalf of clients; nonprofit retail merchants’ trade associations formed to collect accounts and exchange credit information; actions in bankruptcy. § 18.

Federal Deception Law: Pennsylvania

Pennsylvania has three statutes, a criminal law forbidding “debt pooling,” and statutes regulating debt management and debt settlement.

63 Pa. Cons. Stat. §§ 2401 to 2449 (debt management) (parts of this act were found unconstitutional by U.S. Organization for Bankruptcy Alternatives, Inc. v. Department of Banking;6 parts replaced by 63 Pa. Cons. Stat. §§ 2501–2593, discussed in next summary, effective November 2, 2012)

Administrator: Department of Banking. § 2402.