Amendment AA1-AB218

AB218-AA1,7,2 52. Page 27, line 21: delete "That the" and substitute "If the provider holds money on behalf of the debtor, that the".

AB218-AA1,7,4 53. Page 28, line 18: delete that line and substitute "of any collected settlement fees for debts remaining unsettled at the time of termination.".

AB218-AA1,7,6 54. Page 29, line 7: delete "principal amount of the debt" and substitute "actual balance of the debt owed at the time of settlement".

AB218-AA1,7,8 55. Page 29, line 12: delete "principal amount of the debt" and substitute "actual balance of the debt owed at the time of settlement".

AB218-AA1,7,10 56. Page 34, line 20: delete the material beginning with "a provider" and ending with "following" on line 21 and substitute "all of the following apply:".

AB218-AA1,7,12 57. Page 34, line 22: delete the material beginning with that line and ending with page 35, line 3 and substitute:

AB218-AA1,7,16 "a. A provider may charge total fees in an amount not to exceed 18 percent of the principal amount of the debt, which shall include, subject to sub. (18) (d), a fee for consultation, obtaining a credit report, setting up an account, and the like, in an amount not exceeding 4 percent of the principal amount of the debt.

AB218-AA1,7,20 b. Total fees may be collected over no less than half of the length of the plan as estimated at the inception of the plan unless accelerated by the individual or until offers of settlement by creditors are obtained on at least half of the debts enrolled to the provider.

AB218-AA1,7,22 c. In no case shall aggregate fees exceed 18 percent of the total principal amount of the debt.

AB218-AA1,8,2 d. Notwithstanding subd. 2. a., 2. b., or 2. c., no debtor who completes all of his or her obligations under the agreement may be charged fees such that those fees, when added to the aggregate of offers of settlement obtained by the provider for the debtor, exceed the principal amount of the debt.".

AB218-AA1,8,3 58. Page 35, line 9: after that line insert:

AB218-AA1,8,5 "5. In no case shall aggregate fees exceed 18 percent of the total principal amount of the debt.".

AB218-AA1,8,6 59. Page 35, line 13: delete lines 13 to 20.

AB218-AA1,8,7 60. Page 36, line 20: delete lines 20 and 21 and substitute:

AB218-AA1,8,9 "2. Sixty-five percent of any collected settlement fees for debts remaining unsettled at the time of the termination.".

AB218-AA1,8,11 61. Page 38, line 2: delete "principal amount of the debt owed a creditor" and substitute "actual balance of the debt owed a creditor at the time of settlement".

AB218-AA1,8,13 62. Page 38, line 6: delete "principal amount of the debt owed a creditor" and substitute "actual balance of the debt owed a creditor at the time of settlement".

AB218-AA1,8,15 63. Page 38, line 17: after "prospective customer," insert "except for a sales lead,".

AB218-AA1,8,16 64. Page 39, line 13: before "garnishment" insert "collection activity,".

AB218-AA1,8,17 65. Page 39, line 24: after that line insert:

AB218-AA1,8,19 "17. Advise, encourage, or suggest to the individual not to make a payment to creditors under the plan.".

AB218-AA1,8,20 66. Page 40, line 19: delete "(f)" and substitute "(d) 2.".

AB218-AA1,8,22 67. Page 45, line 15: delete "required under sub. (13)" and substitute "or other security required under sub. (13) or (13m)".

AB218-AA1,9,2 68. Page 47, line 22: delete "provided under sub. (13)" and substitute "or other security provided under sub. (13) or (13m)".

AB218-AA1,9,3 69. Page 49, line 24: after that line insert:

AB218-AA1,9,4 " Section 9m. Nonstatutory provisions.

AB218-AA1,9,5 (1) In this section:

AB218-AA1,9,7 (a) "Adjustment service company" has the meaning given in section 218.02 (1) (a), 2005 stats.

AB218-AA1,9,9 (b) "Debt-management services license" means a license issued under section 218.02 of the statutes, as affected by this act.

AB218-AA1,9,17 (2) Notwithstanding section 218.02 (4) (a) of the statutes, as affected by this act, a person that is licensed as an adjustment service company under section 218.02 (3), 2005 stats., may continue to act as an adjustment service company, provided that the person applies, no later than the first day of the 4th month beginning after the effective date of this subsection, for a debt-management services license. A person's authority to act as an adjustment service company under this subsection expires on the date the division of banking takes final action on the person's application for a debt-management services license.".

AB218-AA1,9,18 70. Page 50, line 5: delete "13th" and substitute "7th".

AB218-AA1,9,19 (End)