AB218,26,1212 3. The names of its principal officers.
AB218,26,1613 (h) Subject to par. (i), if a consumer who has consented to electronic
14communication in the manner provided by 15 USC 7001 withdraws consent as
15provided in the federal act, a provider may terminate its agreement with the
16consumer.
AB218,26,2217 (i) If a provider wishes to terminate an agreement with a consumer pursuant
18to par. (h), it shall notify the consumer that it will terminate the agreement unless
19the consumer, within 30 days after receiving the notification, consents to electronic
20communication in the manner provided in 15 USC 7001 (c). If the consumer
21consents, the provider may terminate the agreement only as permitted by sub. (18)
22(a) 6. g.
AB218,26,24 23(18) Form and contents of agreement. (a) An agreement must satisfy all of
24the following:
AB218,26,2525 1. Be in a record.
AB218,27,1
12. Be dated and signed by the provider and the individual.
AB218,27,32 3. Include the name of the individual and the address where the individual
3resides.
AB218,27,44 4. Include the name, business address, and telephone number of the provider.
AB218,27,55 5. Be delivered to the individual immediately upon formation of the agreement.
AB218,27,66 6. Disclose all of the following:
AB218,27,77 a. The services to be provided.
AB218,27,98 b. The amount, or method of determining the amount, of all fees, individually
9itemized, to be paid by the individual.
AB218,27,1210 c. The schedule of payments to be made by or on behalf of the individual,
11including the amount of each payment, the date on which each payment is due, and
12an estimate of the date of the final payment.
AB218,27,1713 d. If a plan provides for regular periodic payments to creditors, the plan must
14disclose each creditor of the individual to which payment will be made, the amount
15owed to each creditor, and any concessions the provider reasonably believes each
16creditor will offer; and the schedule of expected payments to each creditor, including
17the amount of each payment and the date on which it will be made.
AB218,27,1918 e. Each creditor that the provider believes will not participate in the plan and
19to which the provider will not direct payment.
AB218,27,2020 f. How the provider will comply with its obligations under sub. (26) (a).
AB218,27,2221 g. That the provider may terminate the agreement for good cause, upon return
22of unexpended money of the individual.
AB218,27,2323 h. That the individual may cancel the agreement as provided in sub. (19).
AB218,27,2524 i. That the individual may contact the division with any questions or
25complaints regarding the provider.
AB218,28,2
1j. The address, telephone number, and Internet address or Web site of the
2division.
AB218,28,53 (b) For purposes of par. (a) 5., delivery of an electronic record occurs when it is
4made available in a format in which the individual may retrieve, save, and print it
5and the individual is notified that it is available.
AB218,28,86 (c) If the division supplies the provider with any information required under
7par. (a) 6. j., the provider may comply with that requirement only by disclosing the
8information supplied by the division.
AB218,28,99 (d) An agreement must provide all of the following:
AB218,28,1210 1. That the individual has a right to terminate the agreement at any time,
11without penalty or obligation, by giving the provider written or electronic notice, in
12which event all of the following apply:
AB218,28,1513 a. The provider will refund all unexpended money that the provider or its agent
14has received from or on behalf of the individual for the reduction or satisfaction of
15the individual's debt.
AB218,28,1816 b. With respect to an agreement that contemplates that creditors will settle
17debts for less than the principal amount of debt, the provider will refund 65 percent
18of any portion of the set-up fee that has not been credited against the settlement fee.
AB218,28,2019 c. All powers of attorney granted by the individual to the provider are revoked
20and ineffective.
AB218,28,2321 2. That the individual authorizes any financial institution in which the
22provider or its agent has established a trust account to disclose to the division any
23financial records relating to the trust account.
AB218,29,3
13. That the provider will notify the individual within 5 days after learning of
2a creditor's decision to reject or withdraw from a plan and that this notice will include
3all of the following:
AB218,29,44 a. The identity of the creditor.
AB218,29,55 b. The right of the individual to modify or terminate the agreement.
AB218,29,126 (e) An agreement may confer on a provider a power of attorney to settle the
7individual's debt for no more than 50 percent of the principal amount of the debt. An
8agreement may not confer a power of attorney to settle a debt for more than 50
9percent of that amount, but may confer a power of attorney to negotiate with
10creditors of the individual on behalf of the individual. An agreement must provide
11that the provider will obtain the assent of the individual after a creditor has assented
12to a settlement for more than 50 percent of the principal amount of the debt.
AB218,29,1313 (f) An agreement may not do any of the following:
AB218,29,1514 1. Provide for application of the law of any jurisdiction other than the United
15States and this state.
AB218,29,19162. Except as permitted by 9 USC 2 or ch. 788, contain a provision that modifies
17or limits otherwise available forums or procedural rights, including the right to trial
18by jury, that are generally available to the individual under law other than this
19section.
AB218,29,2120 3. Contain a provision that restricts the individual's remedies under this
21section or law other than this section.
AB218,29,2222 4. Contain a provision that does any of the following:
AB218,29,2423 a. Limits or releases the liability of any person for not performing the
24agreement or for violating this section.
AB218,30,2
1b. Indemnifies any person for liability arising under the agreement or this
2section.
AB218,30,53 (g) All rights and obligations specified in par. (d) and sub. (19) exist even if not
4provided in the agreement. A provision in an agreement which violates par. (d), (e),
5or (f) is void.
AB218,30,11 6(19) Cancellation of agreement; waiver. (a) An individual may cancel an
7agreement before midnight of the 3rd business day after the individual assents to it,
8unless the agreement does not comply with par. (b) or sub. (18) or (27), in which event
9the individual may cancel the agreement within 30 days after the individual assents
10to it. To exercise the right to cancel, the individual must give notice in a record to the
11provider. Notice by mail is given when mailed.
AB218,30,1312 (b) An agreement must be accompanied by a form that contains all of the
13following in bold-face type, surrounded by bold black lines:
AB218,30,1414 Notice of Right to Cancel
AB218,30,1715 You may cancel this agreement, without any penalty or obligation, at any time
16before midnight of the 3rd business day that begins the day after you agree to it by
17electronic communication or by signing it.
AB218,30,1818 To cancel this agreement during this period, send an e-mail to:
AB218,30,1919 ...........................................................
AB218,30,20 20  E-mail address of provider
AB218,30,2121 or mail or deliver a signed, dated copy of this notice, or any other written notice to:
AB218,30,2222 ........................................................... at ..........................................................
AB218,30,23 23    Name of provider            Address of provider
AB218,30,2424 before midnight on: ............................................................
AB218,30,25 25                 Date
AB218,31,2
1If you cancel this agreement within the 3-day period, we will refund all money
2you already have paid us.
AB218,31,43 You also may terminate this agreement at any later time, but we are not
4required to refund fees you have paid us.
AB218,31,55 I cancel this agreement,
AB218,31,66 .......................................................................
AB218,31,7 7     Print your name
AB218,31,88 .......................................................................
AB218,31,9 9      Signature
AB218,31,1010 .......................................................................
AB218,31,11 11       Date
AB218,31,1812 (c) If a personal financial emergency necessitates the disbursement of an
13individual's money to one or more of the individual's creditors before the expiration
14of 3 days after an agreement is signed, an individual may waive the right to cancel.
15To waive the right, the individual must send or deliver a signed, dated statement in
16the individual's own words describing the circumstances that necessitate a waiver.
17The waiver must explicitly waive the right to cancel. A waiver by means of a
18standard-form record is void.
AB218,31,23 19(20) Required language. Unless the division, by rule, provides otherwise, the
20disclosures and documents required by this section must be in English. If a provider
21communicates with an individual primarily in a language other than English, the
22provider must furnish a translation into the other language of the disclosures and
23documents required by this section.
AB218,32,3 24(21) Trust account. (a) All money paid to a provider by or on behalf of an
25individual pursuant to a plan for distribution to creditors is held in trust. Within 2

1business days after receipt, the provider shall deposit the money in a trust account
2established for the benefit of individuals to whom the provider is furnishing
3debt-management services.
AB218,32,74 (b) Money held in trust by a provider is not property of the provider or its
5designee. The money is not available to creditors of the provider or designee, except
6an individual from whom or on whose behalf the provider received money, to the
7extent that the money has not been disbursed to creditors of the individual.
AB218,32,88 (c) A provider shall do all of the following:
AB218,32,109 1. Maintain separate records of account for each individual to whom the
10provider is furnishing debt-management services.
AB218,32,1211 2. Disburse money paid by or on behalf of the individual to creditors of the
12individual as disclosed in the agreement, except that all of the following apply:
AB218,32,1413 a. The provider may delay payment to the extent that a payment by the
14individual is not final.
AB218,32,1615 b. If a plan provides for regular periodic payments to creditors, the
16disbursement must comply with the due dates established by each creditor.
AB218,32,2017 3. Promptly correct any payments that are not made or that are misdirected
18as a result of an error by the provider or other person in control of the trust account
19and reimburse the individual for any costs or fees imposed by a creditor as a result
20of the failure to pay or misdirection.
AB218,32,2321 (d) A provider may not commingle money in a trust account established for the
22benefit of individuals to whom the provider is furnishing debt-management services
23with money of other persons.
AB218,32,2524 (e) A trust account must at all times have a cash balance equal to or greater
25than the sum of the positive balances of each individual's account.
AB218,33,5
1(f) If a provider has established a trust account pursuant to par. (a), the
2provider shall reconcile the trust account at least once a month. The reconciliation
3must compare the cash balance in the trust account with the sum of the balances in
4each individual's account. If the provider or its designee has more than one trust
5account, each trust account must be individually reconciled.
AB218,33,106 (g) If a provider discovers, or has a reasonable suspicion of, embezzlement or
7other unlawful appropriation of money held in trust, the provider immediately shall
8notify the division by a method approved by the division. Unless the division by rule
9provides otherwise, within 5 days thereafter, the provider shall give notice to the
10division describing the remedial action taken or to be taken.
AB218,33,1411 (h) If an individual terminates an agreement or it becomes reasonably
12apparent to a provider that a plan has failed, the provider shall promptly refund to
13the individual all money paid by or on behalf of the individual which has not been
14paid to creditors, less fees that are payable to the provider under sub. (22).
AB218,33,1915 (i) Before relocating a trust account from one financial institution to another,
16a provider shall inform the division of the name, business address, and telephone
17number of the new financial institution. As soon as practicable, the provider shall
18inform the administrator of the account number of the trust account at the new
19financial institution.
AB218,33,23 20(22) Fees and other charges. (a) A provider may not impose directly or
21indirectly a fee or other charge on an individual or receive money from or on behalf
22of an individual for debt-management services except as permitted by this
23subsection.
AB218,34,3
1(b) A provider may not impose charges or receive payment for
2debt-management services until the provider and the individual have signed an
3agreement that complies with subs. (18) and (27).
AB218,34,84 (c) If an individual assents to an agreement, a provider may not impose a fee
5or other charge for educational or counseling services, or the like, except as otherwise
6provided in this subsection and sub. (27) (d). The division may authorize a provider
7to charge a fee based on the nature and extent of the educational or counseling
8services furnished by the provider.
AB218,34,109 (d) Subject to adjustment of dollar amounts pursuant to sub. (31) (f), all of the
10following rules apply:
AB218,34,1311 1. If an individual assents to a plan that contemplates that creditors will reduce
12finance charges or fees for late payment, default, or delinquency, the provider may
13charge all of the following:
AB218,34,1514 a. A fee not exceeding $50 for consultation, obtaining a credit report, setting
15up an account, and the like.
AB218,34,1816 b. A monthly service fee, not to exceed $10 times the number of creditors
17remaining in a plan at the time the fee is assessed, but not more than $50 in any
18month.
AB218,34,2119 2. If an individual assents to a plan that contemplates that creditors will settle
20debts for less than the principal amount of the debt, a provider may charge all of the
21following:
AB218,34,2422 a. Subject to sub. sub. (18) (d), a fee for consultation, obtaining a credit report,
23setting up an account, and the like, in an amount not exceeding the lesser of $400 and
244 percent of the debt in the plan at the inception of the plan.
AB218,35,3
1b. A monthly service fee, not to exceed $10 times the number of creditors
2remaining in a plan at the time the fee is assessed, but not more than $50 in any
3month.
AB218,35,44 3. A provider may not impose or receive fees under both subds. 1. and 2.
AB218,35,95 4. Except as otherwise provided in sub. (27) (d), if an individual does not assent
6to an agreement, a provider may receive for educational and counseling services it
7provides to the individual a fee not exceeding $100 or, with the approval of the
8division, a larger fee. The division may approve a fee larger than $100 if the nature
9and extent of the educational and counseling services warrant the larger fee.
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