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Federal Deception Law: Rhode Island

Rhode Island’s 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. A second statute regulates a few credit counseling agency practices, and a third excepts certain credit counseling agencies from the state debt collection practices statute.

R.I. Gen. Laws §§ 19-14.8-1 to 19-14.8-43

Federal Deception Law: South Carolina

South Carolina has two statutes, one regulating debt management and debt settlement, and one (found in the subchapter regulating the practice of law) generally forbidding debt pooling by non-lawyers.

S.C. Code Ann. §§ 37-7-101 to 37-7-122 (debt management and settlement)

Administrator: Department of Consumer Affairs.

Federal Deception Law: South Dakota

S.D. Codified Laws §§ 37-34-1 to 37-34-3

Scope & Key Definitions: Debt adjusting: For consideration, contracting with debtor to receive periodic payments for distributions to creditors according to a plan, or to effect the adjustment, compromise or discharge of indebtedness. § 37-34-1.

Federal Deception Law: Tennessee

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.

Tenn. Code Ann. §§ 47-18-5501 to 47-18-5542

Administrator: Commissioner of Commerce and Insurance.

Scope & Key Definitions: Substantially similar to uniform act. § 47-18-5502.

Federal Deception Law: Texas

Tex. Fin. Code Ann. §§ 394.201 to 394.215 (West)

Administrator: Consumer Credit Commissioner.

Scope & Key Definitions: Consumer debt-management services: acting as an intermediary between a consumer and his or her creditors, for the purpose of obtaining or seeking to obtain concessions from one or more creditors. § 394.202.

Federal Deception Law: Utah

Utah has two statutes, one covering debt-management services, and one covering consumer credit services, which broadly covers credit counseling and credit repair, as well as debt management. The first statute is based on the 2011 version of the Uniform Debt-Management Services Act, summarized at Appx. I.2, supra, with variations as noted below.

Federal Deception Law: Vermont

Vt. Stat. Ann. tit. 8, §§ 2751–2764

Administrator: Commissioner of Financial Regulation.

Scope & Key Definitions: Debt Adjustment: Serving as an intermediary between debtor and creditor for the purpose of obtaining concessions, or distributing funds among creditors in full or partial payment of debtor’s debts. § 2751.

Federal Deception Law: Virgin Islands

This is a version of the 2005 uniform act.

V.I. Code Ann. tit. 12A §§ 401 to 441

Administrator: Lieutenant governor.

Scope & Key Definitions: Substantially similar to uniform act. § 402.

Exceptions: Substantially similar to 2005 act. §§ 402, 403.

Registration/Licensing: Substantially similar to uniform act. §§ 404, 405, 413, 414.

Disclosures: Substantially similar to uniform act. §§ 417, 418, 421, 430.

Pre-Agreement Services: Substantially similar to uniform act. § 417.

Federal Deception Law: Virginia

Va. Code Ann. §§ 6.2-2000 to 6.2025

Administrator: Commissioner of Financial Institutions.

Scope & Key Definitions: Debt Management Plans. Debt pooling and distribution service: an arrangement in which a consumer gives money or control of funds to a person for distribution to the consumer’s creditors. Debt settlement: action taken to obtain debt forgiveness or a reduction of payments, charges or fees. § 6.2-2000.

Federal Deception Law: Washington

Washington has two statutes, one regulating debt adjusters and one regulating third parties administering bank accounts for, among others, debt adjusters.

Wash. Rev. Code. §§ 18.28.010 to 18.28.900 (debt adjusters)

Administrator: Department of Financial Institutions.

Federal Deception Law: West Virginia

W.Va. Code § 61-10-23

Scope & Key Definitions: Debt pooling: charging for providing advice or a plan by which debtor deposits funds with debt pooler for distribution to creditors.

Exceptions: Licensed attorneys.

Registration/Licensing: No.

Disclosures: Not specified.

Pre-Agreement Services: Not specified.

Contract Terms: Not specified.

Cancellation/Termination/Refund Rights: Not specified.

Handling of Funds: Not specified.

Federal Deception Law: Wisconsin

Wis. Stat. § 218.02

Administrator: Division of Banking.

Scope & Key Definitions: Adjustment Service Companies: engaging the business, for a surcharge or other consideration, of pro-rating debtor’s income to creditors or purchasing debtor’s debts. § 218.02(1)(a).

Exceptions: Not specified.

Registration/Licensing: License required. The Division of Banking may require licensees to obtain a bond in the sum of not more than $5000. §§ 218.02(2).

Disclosures: Not specified.

Federal Deception Law: Wyoming

Wyo. Stat. Ann. §§ 33-14-101 to 33-14-103

Scope & Key Definitions: Debt adjustment, budget counseling, debt management or debt pooling: for a fee, offer or provide services to effect the adjustment, compromise or discharge of any debt, or receive from debtor and disburse to creditors money or anything of value. § 33-13-101.

Exceptions: Tax-exempt nonprofit counseling services; attorneys authorized to practice in Wyoming, and partnerships or professional corporations all members of which are attorneys. § 33-14-101, 33-14-102.

Mortgage Servicing and Loan Modifications: NEW HAMPSHIRE

N.H. Rev. Stat. Ann. § 397-A:15(VII)

Requirements: Upon full payment of second mortgage loans, holder is to release or provide evidence for release; if holder has original note, must be returned to borrower upon written request within reasonable time period. Penalties: misdemeanor, fines, license revocation or suspension. § 397-A:20.

Mortgage Servicing and Loan Modifications: NEW MEXICO

N.M. Stat. Ann. §§ 48-7-4, 48-7-4.1, 48-7-5

Requirements: Upon full satisfaction it is the mortgagee’s duty to have release recorded. Penalty is a fine of at least $10 and no more than $25; also liability in civil action to clear title for costs and attorney fees. If noncompliance ninety days after payment, title insurer may have release recorded.

Mortgage Servicing and Loan Modifications: NEW YORK

N.Y. Real Prop. Law § 275 (McKinney)

Requirements: Upon satisfaction holder must have release recorded within thirty days. Liability for noncompliance: $500 if after thirty days, $1000 if after sixty days; $1500 if after ninety days.

Mortgage Servicing and Loan Modifications: NORTH CAROLINA

N.C. Gen. Stat. § 45-36.9

Requirements: Creditor or servicer must record satisfaction or a release within thirty days after full payment; liable for actual but not punitive damages for failure to do so, plus $1000 and attorney fees if creditor does not record satisfaction within thirty days of debtor’s demand. A different statute, N.C. Gen. Stat. § 45-36.3, applies only to satisfactions that occur before October 1, 2005.

Mortgage Servicing and Loan Modifications: OKLAHOMA

Okla. Stat. tit. 46, § 15

Requirements: Holder to file release within thirty days of satisfaction; upon failure to do so mortgagor may request in writing a release. Upon noncompliance within ten days after request, holder is liable in civil action to mortgagor for 1% of principal per day, not to exceed $100, for each day after ten-day period; total penalty not to exceed principal amount. Title insurance company attorney may bring action on behalf of mortgagor.

Mortgage Servicing and Loan Modifications: OREGON

Or. Rev. Stat. § 86.140

Requirements: Upon failure to discharge mortgage within thirty days of request, mortgagee or assignee is liable for actual damages plus $500, recoverable in action at law.

Mortgage Servicing and Loan Modifications: PENNSYLVANIA

21 Pa. Stat. and Cons. Stat. Ann. §§ 681, 682 (West)

Requirements: Upon full payment, mortgagee to enter satisfaction. Upon failure to do so within forty-five days of request, mortgagor is entitled in legal actions to any amount of damages not exceeding the mortgage-money.

7 Pa. Cons. Stat. §§ 6121(8), 6126(7) (West) (Mortgage Licensing Act)

Mortgage Servicing and Loan Modifications: RHODE ISLAND

R.I. Gen. Laws §§ 34-26-2, 34-26-5

Requirements: Upon full payment, mortgagee, successor, or assignee is to enter within thirty days satisfaction or execute release. Liability for noncompliance within ten days of a request for discharge: actual damages in civil action, triple costs, and attorney fees.