AB902: Bill Text

AB902,16,6 (d) If a licensed provider files a timely and complete application for renewal of licensure, the license remains effective until the division, in a record, notifies the applicant of a denial and states the reasons for the denial.

AB902,16,14 (e) If the division denies an application for renewal of licensure as a provider, the applicant, within 30 days after receiving notice of the denial, may appeal and request a hearing pursuant to subch. III of ch. 227. Subject to sub. (30), while the appeal is pending the applicant shall continue to provide debt-settlement services to individuals with whom it has agreements. If the denial is affirmed, subject to the division's order and sub. (30), the applicant shall continue to provide debt-settlement services to individuals with whom it has agreements until, with the approval of the division, it transfers the agreements to another licensed provider.

AB902,16,21 (11) License or registration in another state. If a provider holds a license or certificate of registration in another state authorizing it to provide debt-settlement services, the provider may submit a copy of that license or certificate and the application for it instead of an application in the form prescribed by sub. (4) (a), (5), or (10) (b). The division shall accept the application and the license or certificate from the other state as an application for licensure as a provider or for renewal of licensure as a provider, as appropriate, in this state if all of the following apply:

AB902,16,24 (a) The application in the other state contains information substantially similar to or more comprehensive than that required in an application submitted in this state.

AB902,17,2 (b) The applicant provides the information required by sub. (5) (a), (c), (h), (j), and (k).

AB902,17,5 (c) The applicant, verified under oath or affirmation, certifies that the information contained in the application is current or, to the extent it is not current, supplements the application to make the information current.

AB902,17,7 (12) Requirement of good faith. A provider shall act in good faith in all matters under this section.

AB902,17,11 (13) Customer service. A provider that is required to be licensed under this section shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified debt specialist or customer-service representative, as appropriate, during ordinary business hours.

AB902,17,16 (14) Prerequisites for providing debt-settlement services. (a) Before providing debt-settlement services, a licensed provider shall give the individual an itemized list of goods and services and the charges for each. The list shall be clear and conspicuous, be in a record the individual may keep whether or not the individual assents to an agreement, and describe all of the following:

AB902,17,18 1. The goods and services the provider offers free of additional charge if the individual enters into an agreement.

AB902,17,20 2. The goods and services the provider offers for a charge if the individual does not enter into an agreement.

AB902,17,22 (b) A provider may not furnish debt-settlement services unless the provider, through the services of a certified debt specialist, has satisfied all of the following:

AB902,17,24 1. The provider provides the individual with reasonable education about the management of personal finance.

AB902,18,2 2. The provider has prepared a financial analysis and program for the individual.

AB902,18,4 (c) Before an individual assents to an agreement to engage in a program, a provider shall do all of the following:

AB902,18,7 1. Provide the individual with a copy of the analysis and program required by par. (b) in a record that identifies the provider and that the individual may keep whether or not the individual assents to the agreement.

AB902,18,10 2. Inform the individual of the availability, at the individual's option, of assistance by a toll-free communication system or in person to discuss the financial analysis and program required by par. (b).

AB902,18,12 (d) Before an individual assents to an agreement to engage in a program, the provider shall inform the individual of all of the following:

AB902,18,13 1. The name and business address of the provider.

AB902,18,15 2. That programs are not suitable for all individuals and the individual may ask the provider about other ways, including bankruptcy, to deal with indebtedness.

AB902,18,17 3. That establishment of a program may adversely affect the individual's credit rating or credit scores.

AB902,18,19 4. That nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including litigation.

AB902,18,22 5. That, unless the individual is insolvent, if a creditor settles for less than the full amount of the debt, the program may result in the creation of taxable income to the individual, even though the individual does not receive any money.

AB902,18,25 6. That specific results cannot be predicted or guaranteed and the provider cannot force negotiations or settlements with creditors but will advocate solely on behalf of the individual.

AB902,19,2 7. That programs require that individuals meet a certain savings goal in order to maximize settlement results.

AB902,19,3 8. That the provider does not provide accounting or legal advice to individuals.

AB902,19,5 9. That the provider is the individual's advocate and does not receive compensation from creditors, financial institutions, or 3rd-party collection agencies.

AB902,19,7 10. That the provider is not responsible for distribution of any payments to the individual's creditors.

AB902,19,8 (15) Communication by electronic or other means. (a) In this subsection:

AB902,19,10 1. "Consumer" means an individual who seeks or obtains goods or services that are used primarily for personal, family, or household purposes.

AB902,19,12 2. "Federal act" means the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 to 7031.

AB902,19,15 (b) A provider may satisfy the requirements of sub. (14), (16), or (23) by means of the Internet or other electronic means if the provider obtains a consumer's consent in the manner provided by 15 USC 7001 (c) (1).

AB902,19,17 (c) The disclosures and materials required by subs. (14), (16), and (23) shall be presented in a form that is capable of being accurately reproduced for later reference.

AB902,19,21 (d) With respect to disclosure by means of an Internet Web site, the disclosure of the information required by sub. (14) (d) shall appear on one or more screens that contain no other information and that the individual shall see before proceeding to assent to formation of a program.

AB902,19,25 (e) At the time of providing the materials and agreement required by subs. (14) (c) and (d), (16), and (23), a provider shall inform the individual that upon electronic, telephonic, or written request, it will send the individual a written copy of the materials, and shall comply with a request as provided in par. (f).

AB902,20,8 (f) If a provider is requested, before the expiration of 90 days after a program is completed or terminated, to send a written copy of the materials required by subs. (14) (c) and (d), (16), and (23), the provider shall send them at no charge within 3 business days after the request, but the provider need not comply with a request more than once per calendar month or if it reasonably believes the request is made for purposes of harassment. If a request is made more than 90 days after a program is completed or terminated, the provider shall send within a reasonable time a written copy of the materials requested.

AB902,20,11 (g) A provider that maintains an Internet Web site shall disclose all of the following on the home page of its Web site or on a page that is clearly and conspicuously connected to the home page by a link that clearly reveals its contents:

AB902,20,12 1. Its name and all names under which it does business.

AB902,20,14 2. Its principal business address, telephone number, and electronic mail address, if any.

AB902,20,18 (h) Subject to par. (i), if a consumer who has consented to electronic communication in the manner provided by 15 USC 7001 withdraws consent as provided in 15 USC 7001, a provider may terminate its agreement with the consumer.

AB902,20,22 (i) If a provider wishes to terminate an agreement with a consumer pursuant to par. (h), it shall notify the consumer that it will terminate the agreement unless the consumer, within 30 days after receiving the notification, consents to electronic communication in the manner provided in 15 USC 7001 (c).

AB902,20,24 (16) Form and contents of agreement. (a) An agreement shall satisfy all of the following:

AB902,20,25 1. Be in a record.

AB902,21,1 2. Be dated and signed by the individual.

AB902,21,3 3. Include the name of the individual and the address where the individual resides.

AB902,21,4 4. Include the name, business address, and telephone number of the provider.

AB902,21,5 5. Be delivered to the individual immediately upon formation of the agreement.

AB902,21,6 6. Disclose all of the following:

AB902,21,7 a. The services to be provided.

AB902,21,9 b. The amount, or method of determining the amount, of all fees, individually itemized, to be paid by the individual.

AB902,21,10 c. How the provider will comply with its obligations under sub. (23) (b).

AB902,21,11 d. That the individual may cancel the agreement as provided in sub. (17).

AB902,21,13 e. That the individual may contact the division with any questions or complaints regarding the provider.

AB902,21,15 f. The address, telephone number, and Internet address or Web site of the division.

AB902,21,18 (b) For purposes of par. (a) 5., delivery of an electronic record occurs when it is made available in a format in which the individual may retrieve, save, and print it and the individual is notified that it is available.

AB902,21,21 (c) If the division supplies the provider with any information required under par. (a) 6. f., the provider may comply with that requirement only by disclosing the information supplied by the division.

AB902,21,22 (d) An agreement shall provide all of the following:

AB902,22,2 1. That the individual has a right to terminate the agreement at any time, without penalty or obligation, by giving the provider written or electronic notice, in which event all powers of attorney granted by the individual to the provider are revoked and ineffective.

AB902,22,5 2. That the provider will notify the individual within 5 days after learning of a creditor's decision to cease negotiations with the provider and that this notice will include all of the following:

AB902,22,6 a. The identity of the creditor.

AB902,22,7 b. The right of the individual to modify or terminate the agreement.

AB902,22,14 (e) An agreement may confer on a provider a power of attorney to settle the individual's debt for no more than 50 percent of the amount of the debt. An agreement may not confer a power of attorney to settle a debt for more than 50 percent of that amount, but may confer a power of attorney to negotiate with creditors of the individual on behalf of the individual. An agreement shall provide that the provider will obtain the assent of the individual after a creditor has assented to a settlement for more than 50 percent of the amount of the debt.

AB902,22,15 (f) An agreement may not do any of the following:

AB902,22,17 1. Provide for application of the law of any jurisdiction other than the United States and this state.

AB902,22,21 2. Except as permitted by 9 USC 2 or ch. 788, contain a provision that modifies or limits otherwise available forums or procedural rights, including the right to trial by jury, that are generally available to the individual under law other than this section.

AB902,22,23 3. Contain a provision that restricts the individual's remedies under this section or law other than this section.

AB902,22,24 4. Contain a provision that does any of the following:

AB902,23,2 a. Limits or releases the liability of any person for not performing the agreement or for violating this section.

AB902,23,4 b. Indemnifies any person for liability arising under the agreement or this section.

AB902,23,7 (g) All rights and obligations specified in par. (d) and sub. (17) exist even if not provided in the agreement. A provision in an agreement which violates par. (d), (e), or (f) is void.

AB902,23,13 (17) Cancellation of agreement; waiver. (a) An individual may cancel an agreement before midnight of the 3rd business day after the individual assents to it, unless the agreement does not comply with par. (b) or sub. (16) or (24), in which event the individual may cancel the agreement within 30 days after the individual assents to it. To exercise the right of cancellation, the individual shall give notice in a record to the provider. Notice by mail is given when mailed.

AB902,23,15 (b) An agreement shall be accompanied by a form that contains all of the following in boldface type, surrounded by bold black lines:

AB902,23,16 Notice of Right of Cancellation

AB902,23,19 You may cancel this agreement, without any penalty or obligation, at any time before midnight of the 3rd business day that begins the day after you agree to it by electronic communication or by signing it.

AB902,23,20 To cancel this agreement during this period, send an e-mail to:

AB902,23,21 ...........................................................

AB902,23,22   E-mail address of provider

AB902,23,23 or mail or deliver a signed, dated copy of this notice, or any other written notice to:

AB902,23,24 ........................................................... at ..........................................................

AB902,23,25     Name of provider            Address of provider

AB902,24,1 before midnight on: ............................................................

AB902,24,2                  Date

AB902,24,4 If you cancel this agreement within the 3-day period, we will refund all money you already have paid us.

AB902,24,5 I cancel this agreement,

AB902,24,6 .......................................................................

AB902,24,7      Print your name

AB902,24,8 .......................................................................

AB902,24,9       Signature

AB902,24,10 .......................................................................