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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.

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.