| Old | New | Differences | |
|---|---|---|---|
| 1 | - | General Assembly Substitute Bill No. 362 | |
| 2 | - | February Session, 2012 *_____SB00362BA____032012____* | |
| 1 | + | General Assembly Raised Bill No. 362 | |
| 2 | + | February Session, 2012 LCO No. 1404 | |
| 3 | + | *01404_______BA_* | |
| 4 | + | Referred to Committee on Banks | |
| 5 | + | Introduced by: | |
| 6 | + | (BA) | |
| 3 | 7 | ||
| 4 | 8 | General Assembly | |
| 5 | 9 | ||
| 6 | - | ||
| 10 | + | Raised Bill No. 362 | |
| 7 | 11 | ||
| 8 | 12 | February Session, 2012 | |
| 9 | 13 | ||
| 10 | - | *_____SB00362BA____032012____* | |
| 14 | + | LCO No. 1404 | |
| 15 | + | ||
| 16 | + | *01404_______BA_* | |
| 17 | + | ||
| 18 | + | Referred to Committee on Banks | |
| 19 | + | ||
| 20 | + | Introduced by: | |
| 21 | + | ||
| 22 | + | (BA) | |
| 11 | 23 | ||
| 12 | 24 | AN ACT CONCERNING DEBT NEGOTIATORS. | |
| 13 | 25 | ||
| 14 | 26 | Be it enacted by the Senate and House of Representatives in General Assembly convened: | |
| 15 | 27 | ||
| 16 | 28 | Section 1. Section 36a-671b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012): | |
| 17 | 29 | ||
| 18 | - | (a) | |
| 30 | + | (a) A debt negotiator shall provide to each debtor a contract that shall include a complete, detailed list of services to be performed, the costs of such services and the results to be achieved. Each debt negotiation service contract shall contain (1) a statement certifying that the person offering debt negotiation services has reviewed the consumer's debt, and (2) an individualized evaluation of the likelihood that the proposed debt negotiation services would reduce the consumer's debt or debt service or, if appropriate, prevent the consumer's residential home from being foreclosed. Each contract shall allow the consumer to cancel or rescind such contract within three business days after the date on which the consumer signed the contract. Such contract shall contain a clear and conspicuous caption that shall read, "Debtor's three-day right to cancel", along with the following statement: "If you wish to cancel this contract, you may cancel by mailing a written notice by certified or registered mail to the address specified below. The notice shall state that you do not wish to be bound by this contract and must be delivered or mailed before midnight of the third business day after you sign this contract." As used in this section, "business day" shall have the same meaning as in section 42-134a. | |
| 19 | 31 | ||
| 20 | - | ( | |
| 32 | + | (b) No person offering debt negotiation services may receive a fee, commission or other valuable consideration for the performance of any service the person offering debt negotiation services has agreed to perform for any consumer until the person offering debt negotiation services has fully performed such service. A person offering debt negotiation services may receive reasonable periodic payments as services are rendered, provided such payments are clearly stated in the contract. The commissioner may establish a schedule of maximum fees that a debt negotiator may charge for specific services, provided a debt negotiator may charge a maximum fee of thirty per cent of the amount by which such debt negotiator reduces a consumer's debt. | |
| 21 | 33 | ||
| 22 | - | (2) "Amount saved" means the difference between the amount of a debtor's debt when such debtor enters into a contract with a debt negotiator to provide debt negotiation services with regard to such debt and the total amount of money required to satisfy such debt; and | |
| 23 | - | ||
| 24 | - | (3) "Individual debt amount" and "entire debt amount" means the debt amounts owed at the time the debtor enters into a contract with a debt negotiator to provide debt negotiation services with regard to such debts. | |
| 25 | - | ||
| 26 | - | [(a)] (b) A debt negotiator shall provide to each debtor a contract that shall include a complete, detailed list of services to be performed, the costs of such services and a good faith estimate of the results to be achieved. Each debt negotiation service contract shall contain (1) a statement certifying that the person offering debt negotiation services has reviewed the consumer's debt, and (2) an individualized evaluation of the likelihood that the proposed debt negotiation services would reduce the consumer's debt or debt service or, if appropriate, prevent the consumer's residential home from being foreclosed. Each contract shall allow the consumer to cancel or rescind such contract within three business days after the date on which the consumer signed the contract. Such contract shall contain a clear and conspicuous caption that shall read, "Debtor's three-day right to cancel", along with the following statement: "If you wish to cancel this contract, you may cancel by mailing a written notice by certified or registered mail to the address specified below. The notice shall state that you do not wish to be bound by this contract and must be delivered or mailed before midnight of the third business day after you sign this contract." As used in this section, "business day" shall have the same meaning as in section 42-134a. | |
| 27 | - | ||
| 28 | - | [(b)] (c) No person offering debt negotiation services may receive a fee, commission or other valuable consideration for the performance of any service the person offering debt negotiation services has agreed to perform for any consumer [until the person offering debt negotiation services has fully performed such service. A person offering debt negotiation services may receive reasonable periodic payments as services are rendered, provided such payments are clearly stated in the contract. The commissioner may establish a schedule of maximum fees that a debt negotiator may charge for specific services.] unless: | |
| 29 | - | ||
| 30 | - | (1) The debt negotiator has renegotiated, settled, reduced or otherwise altered the terms of an enrolled debt; | |
| 31 | - | ||
| 32 | - | (2) The debtor has made at least one payment toward the settlement of such enrolled debt; and | |
| 33 | - | ||
| 34 | - | (3) The fee or consideration charged for such renegotiation, settlement, reduction or other alteration of terms either: | |
| 35 | - | ||
| 36 | - | (A) Bears the same proportional relationship to the total fee for renegotiating, settling, reducing or altering the terms of the entire debt balance as the individual debt amount of such enrolled debt bears to the entire debt amount; or | |
| 37 | - | ||
| 38 | - | (B) Is a percentage of the amount saved as a result of such renegotiation, settlement, reduction or alteration, provided the percentage charged shall not change from one individual enrolled debt to another. | |
| 39 | - | ||
| 40 | - | [(c)] (d) Any contract that does not comply with the provisions of this section shall be voidable by the consumer. | |
| 34 | + | (c) Any contract that does not comply with the provisions of this section shall be voidable by the consumer. | |
| 41 | 35 | ||
| 42 | 36 | ||
| 43 | 37 | ||
| 44 | 38 | ||
| 45 | 39 | This act shall take effect as follows and shall amend the following sections: | |
| 46 | 40 | Section 1 October 1, 2012 36a-671b | |
| 47 | 41 | ||
| 48 | 42 | This act shall take effect as follows and shall amend the following sections: | |
| 49 | 43 | ||
| 50 | 44 | Section 1 | |
| 51 | 45 | ||
| 52 | 46 | October 1, 2012 | |
| 53 | 47 | ||
| 54 | 48 | 36a-671b | |
| 55 | 49 | ||
| 50 | + | Statement of Purpose: | |
| 56 | 51 | ||
| 52 | + | To permit a debt negotiator to charge a maximum of thirty per cent of the amount by which such debt negotiator reduces a consumer's debt. | |
| 57 | 53 | ||
| 58 | - | BA Joint Favorable Subst. | |
| 59 | - | ||
| 60 | - | BA | |
| 61 | - | ||
| 62 | - | Joint Favorable Subst. | |
| 54 | + | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] |