332B.02 DEFINITIONS. Subdivision 1. Scope. Unless a different meaning is clearly indicated by the context, for the purposes of this chapter, the terms defined in this section have the meanings given them. Subd. 2. Accreditation. “Accreditation” means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, […]
332B.03 REQUIREMENT OF REGISTRATION. On or after August 1, 2009, it is unlawful for any person, whether or not located in this state, to operate as a debt settlement services provider or provide debt settlement services including, but not limited to, offering, advertising, or executing or causing to be executed any debt settlement services or […]
332B.04 REGISTRATION. Subdivision 1. Form. Application for registration to operate as a debt settlement services provider in this state must be made in writing to the commissioner, under oath, in the form prescribed by the commissioner, and must contain: (1) the full name of each principal of the entity applying; (2) the address, which must […]
332B.05 DENIAL, SUSPENSION, REVOCATION, OR NONRENEWAL OF REGISTRATION. Subdivision 1. Denial. The commissioner, with notice to the applicant by certified mail sent to the address listed on the application, may deny an application for a registration for any of the reasons specified under section 332A.08. Subd. 2. Suspension, revocation, or nonrenewal. The commissioner may suspend, […]
332B.06 WRITTEN DEBT SETTLEMENT SERVICES AGREEMENT; DISCLOSURES; TRUST ACCOUNT. Subdivision 1. Written agreement required. (a) A debt settlement services provider may not perform, or impose any charges or receive any payment for, any debt settlement services until the provider and the debtor have executed a debt settlement services agreement that contains all terms of the […]
332B.07 RIGHT TO CANCEL. Subdivision 1. Debtor’s right to cancel. (a) A debtor has the right to cancel a debt settlement services agreement without cause at any time upon ten days’ written notice to the debt settlement services provider. (b) In the event of cancellation, the debt settlement services provider must, within ten days of […]
332B.08 BOOKS, RECORDS, AND INFORMATION. Subdivision 1. Records retention; annual report. Every registrant must keep, and use in the registrant’s business, such books, accounts, and records, including electronic records, as will enable the commissioner to determine whether the registrant is complying with this chapter and the rules, orders, and directives adopted by the commissioner under […]
332B.09 FEES; WITHDRAWAL OF CREDITORS; NOTIFICATION TO DEBTOR OF SETTLEMENT OFFER. Subdivision 1. Choice of fee structure. A debt settlement services provider may calculate fees on a percentage of debt basis or on a percentage of savings basis. The fee structure shall be clearly disclosed and explained in the debt settlement services agreement. Subd. 2. […]
332B.10 PROHIBITIONS. No debt settlement services provider shall: (1) engage in any activity, act, or omission prohibited under section 332A.14; (2) promise, guarantee, or directly or indirectly imply, infer, or in any manner represent that any debt will be settled prior to the presentation to the debtor of an offer by the creditors participating in […]
332B.11 ADVERTISEMENT AND SOLICITATION OF DEBT SETTLEMENT SERVICES. Subdivision 1. Advertisement. No debt settlement services provider or lead generator may: (1) make any false, deceptive, or misleading statements or omissions about the rates, terms, or conditions of an actual or proposed debt settlement services plan, or create the likelihood of consumer confusion or misunderstanding regarding […]
332B.12 DEBT SETTLEMENT SERVICES AGREEMENT RESCISSION. Any debtor has the right to rescind any debt settlement services agreement with a debt settlement services provider that commits a material violation of this chapter. On rescission, all fees paid to the debt settlement services provider or any other person other than creditors of the debtor must be […]
332B.13 ENFORCEMENT; REMEDIES. Subdivision 1. Violation as deceptive practice. A violation of any of the provisions of this chapter is considered an unfair or deceptive trade practice under section 8.31, subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in the public interest. Subd. 2. Private right of action. […]
332B.14 INVESTIGATIONS. At any reasonable time, the commissioner may examine the books and records of every registrant and of any person engaged in the business of providing debt settlement services. The commissioner, once during any calendar year, may require the submission of an audit prepared by a certified public accountant of the books and records […]
