§ 2423A. Fees and other charges.
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/de/title-6/2423aA research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)A provider may not impose directly or indirectly a fee or other charge on an individual or receive money from or on behalf of an individual for debt-management services except as permitted by this section.
(b)A provider may not impose charges or receive payment for debt-management services until the provider and the individual have signed an agreement that complies with §§ 2419A and 2428A of this title.
(c)If an individual assents to an agreement, a provider may not impose a fee or other charge for educational or counseling services, or the like, except as otherwise provided in this subsection and § 2428A(d) of this title. The Attorney General may authorize a provider to charge a fee based on the nature and extent of the educational or counseling services furnished by the provider.
(d)Subject to adjustment of dollar amounts pursuant to § 2432A(f) of this title, the following rules apply:
(1)If an individual assents to a plan that contemplates that creditors will reduce finance charges or fees for late payment, default, or delinquency, the provider may charge:
(A)A fee not exceeding $50 for consultation, obtaining a credit report, setting up an account, and the like; and
(B)A monthly service fee, not to exceed $10 times the number of creditors remaining in a plan at the time the fee is assessed, but not more than $50 in any month.
(2)If an individual assents to a plan that contemplates that creditors will settle debts for less than the principal amount of the debt, a provider may charge:
(A)Subject to § 2419A(d) of this title, a nonrefundable fee for consultation, obtaining a credit report,
(B)A monthly service fee,
(C)A settlement fee. In no case shall aggregate fees exceed 18 percent of the total principal amount of the debt.
(3)A provider may not impose or receive fees under both paragraphs (d)(1) and (d)(2) of this section.
(4)Except as otherwise provided in § 2428A(d) of this section, if an individual does not assent to an agreement, a provider may receive for educational and counseling services it provides to the individual a fee not exceeding $100 or, with the approval of the Attorney General, a larger fee. The Attorney General may approve a fee larger than $100 if the nature and extent of the educational and counseling services warrant the larger fee.
(e)If, before the expiration of 90 days after the completion or termination of educational or counseling services, an individual assents to an agreement, the provider shall refund to the individual any fee paid pursuant to paragraph (d)(4) of this section.
(f)Except as otherwise provided in subsections
(c)and
(d)of this section, if a plan contemplates that creditors will settle an individual’s debts for less than the principal amount of the debt, compensation for services in connection with settling a debt may not exceed, with respect to each debt:
(1)Eighteen percent of the principal amount; less
(2)To the extent it has not been credited against an earlier settlement fee:
(A)The fee charged pursuant to paragraph (d)(2)(A) of this section; and
(B)The aggregate of fees charged pursuant to paragraph (d)(2)(B) of this section.
(g)Subject to adjustment of the dollar amount pursuant to § 2432A(f) of this section, if a payment to a provider by an individual under this chapter is dishonored, a provider may impose a reasonable charge on the individual, not to exceed the lesser of $25 and the amount permitted by law other than this chapter.