AB218: Bill Text

AB218,23,9 3. That establishment of a plan may adversely affect the individual's credit rating or credit scores.

AB218,23,11 4. That nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including litigation.

AB218,23,13 5. Unless it is not true, that the provider may receive compensation from the creditors of the individual.

AB218,23,16 6. That, unless the individual is insolvent, if a creditor settles for less than the full amount of the debt, the plan may result in the creation of taxable income to the individual, even though the individual does not receive any money.

AB218,23,20 (e) If a provider may receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, the provider may comply with par. (d) by providing the following disclosure, surrounded by black lines:

AB218,23,21 IMPORTANT INFORMATION FOR YOU TO CONSIDER

AB218,23,24 (1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.

AB218,23,25 (2) Using a debt-management plan may hurt your credit rating or credit scores.

AB218,24,1 (3) We may receive compensation for our services from your creditors.

AB218,24,2      ..................................................................................

AB218,24,3        Name and business address of provider

AB218,24,7 (f) If a provider will not receive payments from an individual's creditors and the plan contemplates that the individual's creditors will reduce finance charges or fees for late payment, default, or delinquency, a provider may comply with par. (d) by providing the following disclosure, surrounded by black lines:

AB218,24,8 IMPORTANT INFORMATION FOR YOU TO CONSIDER

AB218,24,11 (1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.

AB218,24,12 (2) Using a debt-management plan may hurt your credit rating or credit scores.

AB218,24,13      ..................................................................................

AB218,24,14        Name and business address of provider

AB218,24,17 (g) If a plan contemplates that creditors will settle debts for less than the full principal amount of debt owed, a provider may comply with par. (d) by providing the following disclosure, surrounded by black lines:

AB218,24,18 IMPORTANT INFORMATION FOR YOU TO CONSIDER

AB218,24,20 (1) Our program is not right for all individuals, and you may ask us to provide information about bankruptcy and other ways to deal with your debts.

AB218,24,21 (2) Nonpayment of your debts under our program may:

AB218,24,22 • hurt your credit rating or credit scores;

AB218,24,23 • lead your creditors to increase finance and other charges; and

AB218,24,24 • lead your creditors to undertake activity, including lawsuits, to collect the

AB218,24,25 debts.

AB218,25,2 (3) Reduction of debt under our program may result in taxable income to you, even though you will not actually receive any money.

AB218,25,3      ..................................................................................

AB218,25,4        Name and business address of provider

AB218,25,5 (17) Communication by electronic or other means. (a) In this subsection:

AB218,25,7 1. "Federal act" means the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 to 7031.

AB218,25,9 2. "Consumer" means an individual who seeks or obtains goods or services that are used primarily for personal, family, or household purposes.

AB218,25,12 (b) A provider may satisfy the requirements of sub. (16), (18), or (26) 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).

AB218,25,14 (c) The disclosures and materials required by subs. (16), (18), and (26) shall be presented in a form that is capable of being accurately reproduced for later reference.

AB218,25,18 (d) With respect to disclosure by means of an Internet Web site, the disclosure of the information required by sub. (16) (d) must appear on one or more screens that contain no other information and that the individual must see before proceeding to assent to formation of a plan.

AB218,25,22 (e) At the time of providing the materials and agreement required by subs. (16) (c) and (d), (18), and (26), 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).

AB218,26,5 (f) If a provider is requested, before the expiration of 90 days after a plan is completed or terminated, to send a written copy of the materials required by subs. (16) (c) and (d), (18), and (26), 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 plan is completed or terminated, the provider shall send within a reasonable time a written copy of the materials requested.

AB218,26,8 (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:

AB218,26,9 1. Its name and all names under which it does business.

AB218,26,11 2. Its principal business address, telephone number, and electronic-mail address, if any.

AB218,26,12 3. The names of its principal officers.

AB218,26,16 (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 the federal act, a provider may terminate its agreement with the consumer.

AB218,26,22 (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). If the consumer consents, the provider may terminate the agreement only as permitted by sub. (18) (a) 6. g.

AB218,26,24 (18) Form and contents of agreement. (a) An agreement must satisfy all of the following:

AB218,26,25 1. Be in a record.

AB218,27,1 2. Be dated and signed by the provider and the individual.

AB218,27,3 3. Include the name of the individual and the address where the individual resides.

AB218,27,4 4. Include the name, business address, and telephone number of the provider.

AB218,27,5 5. Be delivered to the individual immediately upon formation of the agreement.

AB218,27,6 6. Disclose all of the following:

AB218,27,7 a. The services to be provided.

AB218,27,9 b. The amount, or method of determining the amount, of all fees, individually itemized, to be paid by the individual.

AB218,27,12 c. The schedule of payments to be made by or on behalf of the individual, including the amount of each payment, the date on which each payment is due, and an estimate of the date of the final payment.

AB218,27,17 d. If a plan provides for regular periodic payments to creditors, the plan must disclose each creditor of the individual to which payment will be made, the amount owed to each creditor, and any concessions the provider reasonably believes each creditor will offer; and the schedule of expected payments to each creditor, including the amount of each payment and the date on which it will be made.

AB218,27,19 e. Each creditor that the provider believes will not participate in the plan and to which the provider will not direct payment.

AB218,27,20 f. How the provider will comply with its obligations under sub. (26) (a).

AB218,27,22 g. That the provider may terminate the agreement for good cause, upon return of unexpended money of the individual.

AB218,27,23 h. That the individual may cancel the agreement as provided in sub. (19).

AB218,27,25 i. That the individual may contact the division with any questions or complaints regarding the provider.

AB218,28,2 j. The address, telephone number, and Internet address or Web site of the division.

AB218,28,5 (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.

AB218,28,8 (c) If the division supplies the provider with any information required under par. (a) 6. j., the provider may comply with that requirement only by disclosing the information supplied by the division.

AB218,28,9 (d) An agreement must provide all of the following:

AB218,28,12 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 of the following apply:

AB218,28,15 a. The provider will refund all unexpended money that the provider or its agent has received from or on behalf of the individual for the reduction or satisfaction of the individual's debt.

AB218,28,18 b. With respect to an agreement that contemplates that creditors will settle debts for less than the principal amount of debt, the provider will refund 65 percent of any portion of the set-up fee that has not been credited against the settlement fee.

AB218,28,20 c. All powers of attorney granted by the individual to the provider are revoked and ineffective.

AB218,28,23 2. That the individual authorizes any financial institution in which the provider or its agent has established a trust account to disclose to the division any financial records relating to the trust account.

AB218,29,3 3. That the provider will notify the individual within 5 days after learning of a creditor's decision to reject or withdraw from a plan and that this notice will include all of the following:

AB218,29,4 a. The identity of the creditor.

AB218,29,5 b. The right of the individual to modify or terminate the agreement.

AB218,29,12 (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 principal 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 must 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 principal amount of the debt.

AB218,29,13 (f) An agreement may not do any of the following:

AB218,29,15 1. Provide for application of the law of any jurisdiction other than the United States and this state.

AB218,29,19 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.

AB218,29,21 3. Contain a provision that restricts the individual's remedies under this section or law other than this section.

AB218,29,22 4. Contain a provision that does any of the following:

AB218,29,24 a. Limits or releases the liability of any person for not performing the agreement or for violating this section.

AB218,30,2 b. Indemnifies any person for liability arising under the agreement or this section.

AB218,30,5 (g) All rights and obligations specified in par. (d) and sub. (19) exist even if not provided in the agreement. A provision in an agreement which violates par. (d), (e), or (f) is void.

AB218,30,11 (19) 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. (18) or (27), in which event the individual may cancel the agreement within 30 days after the individual assents to it. To exercise the right to cancel, the individual must give notice in a record to the provider. Notice by mail is given when mailed.

AB218,30,13 (b) An agreement must be accompanied by a form that contains all of the following in bold-face type, surrounded by bold black lines:

AB218,30,14 Notice of Right to Cancel

AB218,30,17 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.

AB218,30,18 To cancel this agreement during this period, send an e-mail to:

AB218,30,19 ...........................................................

AB218,30,20   E-mail address of provider

AB218,30,21 or mail or deliver a signed, dated copy of this notice, or any other written notice to:

AB218,30,22 ........................................................... at ..........................................................

AB218,30,23     Name of provider            Address of provider