MD
Maryland House Bill HB128

Maryland 2022 Regular Session

Maryland House Bill HB128 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 618
21
3-– 1 –
4-Chapter 618
5-(House Bill 128)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0128*
89
9-Debt Settlement Services – Student Education Loan Debt Relief – Disclosures
10-and Prohibitions
10+HOUSE BILL 128
11+I1, I3, F2 2lr0595
12+ (PRE–FILED)
13+By: Delegate Lopez
14+Requested: September 29, 2021
15+Introduced and read first time: January 12, 2022
16+Assigned to: Economic Matters and Appropriations
17+Committee Report: Favorable with amendments
18+House action: Adopted
19+Read second time: February 26, 2022
1120
12-FOR the purpose of applying certain provisions of law regarding debt settlement services
13-to student education loan debt relief; requiring a person registered to provide debt
14-settlement services to make certain disclosures to consumers relating to student
15-education loan debt; requiring that an advertisement for debt settlement services for
16-student education loan debt relief include a certain disclosure; prohibiting debt
17-settlement services providers from taking certain actions with respect to student
18-education loan debt relief; and generally relating to student education loan debt and
19-debt settlement services.
21+CHAPTER ______
2022
21-BY repealing and reenacting, without amendments,
22- Article – Financial Institutions
23-Section 2–104.1(a)
24- Annotated Code of Maryland
25- (2020 Replacement Volume and 2021 Supplement)
23+AN ACT concerning 1
2624
27-BY repealing and reenacting, with amendments,
28- Article – Financial Institutions
29-Section 12–1001, 12–1012, and 12–1013
30- Annotated Code of Maryland
31- (2020 Replacement Volume and 2021 Supplement)
25+Debt Settlement Services – Student Education Loan Debt Relief – Disclosures 2
26+and Prohibitions 3
3227
33-BY adding to
34- Article – Financial Institutions
35-Section 12–1012.1
36- Annotated Code of Maryland
37- (2020 Replacement Volume and 2021 Supplement)
28+FOR the purpose of applying certain provisions of law regarding debt settlement services 4
29+to student education loan debt relief; requiring a person registered to provide debt 5
30+settlement services to make certain disclosures to consumers relating to student 6
31+education loan debt; requiring that an advertisement for debt settlement services for 7
32+student education loan debt relief include a certain disclosure; prohibiting debt 8
33+settlement services providers from taking certain actions with respect to student 9
34+education loan debt relief; and generally relating to student education loan debt and 10
35+debt settlement services. 11
3836
39-BY renumbering
40- Article – Financial Institutions
41- Section 12–1001(l)
42- to be Section 12–1001(m)
43- Annotated Code of Maryland
44- (2020 Replacement Volume and 2021 Supplement)
37+BY repealing and reenacting, without amendments, 12
38+ Article – Financial Institutions 13
39+Section 2–104.1(a) 14
40+ Annotated Code of Maryland 15
41+ (2020 Replacement Volume and 2021 Supplement) 16
4542
46-BY repealing and reenacting, without amendments,
47- Article – Financial Institutions
48- Section 2–104.1(a)(1) and (3) and 12–1001(a)
49- Annotated Code of Maryland Ch. 618 2022 LAWS OF MARYLAND
43+BY repealing and reenacting, with amendments, 17
44+ Article – Financial Institutions 18
45+Section 12–1001, 12–1012, and 12–1013 19
46+ Annotated Code of Maryland 20
47+ (2020 Replacement Volume and 2021 Supplement) 21
48+ 2 HOUSE BILL 128
5049
51-– 2 –
52- (2020 Replacement Volume and 2021 Supplement)
5350
54-BY adding to
55- Article – Financial Institutions
56- Section 12–1001(l) and 12–1012.1
57- Annotated Code of Maryland
58- (2020 Replacement Volume and 2021 Supplement)
51+BY adding to 1
52+ Article – Financial Institutions 2
53+Section 12–1012.1 3
54+ Annotated Code of Maryland 4
55+ (2020 Replacement Volume and 2021 Supplement) 5
5956
60-BY repealing and reenacting, with amendments,
61- Article – Financial Institutions
62- Section 12–1012 and 12–1013
63- Annotated Code of Maryland
64- (2020 Replacement Volume and 2021 Supplement)
57+BY renumbering 6
58+ Article – Financial Institutions 7
59+ Section 12–1001(l) 8
60+ to be Section 12–1001(m) 9
61+ Annotated Code of Maryland 10
62+ (2020 Replacement Volume and 2021 Supplement) 11
6563
66- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
67-That the Laws of Maryland read as follows:
64+BY repealing and reenacting, without amendments, 12
65+ Article – Financial Institutions 13
66+ Section 2–104.1(a)(1) and (3) and 12–1001(a) 14
67+ Annotated Code of Maryland 15
68+ (2020 Replacement Volume and 2021 Supplement) 16
6869
69- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
70-That Section(s) 12–1001(l) of Article – Financial Institutions of the Annotated Code of
71-Maryland be renumbered to be Section(s) 12–1001(m).
70+BY adding to 17
71+ Article – Financial Institutions 18
72+ Section 12–1001(l) and 12–1012.1 19
73+ Annotated Code of Maryland 20
74+ (2020 Replacement Volume and 2021 Supplement) 21
7275
73- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
74-as follows:
76+BY repealing and reenacting, with amendments, 22
77+ Article – Financial Institutions 23
78+ Section 12–1012 and 12–1013 24
79+ Annotated Code of Maryland 25
80+ (2020 Replacement Volume and 2021 Supplement) 26
7581
76-Article – Financial Institutions
82+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27
83+That the Laws of Maryland read as follows: 28
7784
78-2–104.1.
85+ SECTION 1. BE IT ENACTED BY THE GENERAL ASS EMBLY OF MARYLAND, 29
86+That Section(s) 12–1001(l) of Article – Financial Institutions of the Annotated Code of 30
87+Maryland be renumbered to be Section(s) 12–1001(m). 31
7988
80- (a) (1) In this section the following words have the meanings indicated.
89+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 32
90+as follows: 33
8191
82- (2) “Servicing” means:
92+Article – Financial Institutions 34
8393
84- (i) Receiving scheduled periodic payments from a student loan
85-borrower according to the terms of a student education loan;
94+2–104.1. 35
8695
87- (ii) Applying the payments according to the student education loan
88-terms; and
96+ (a) (1) In this section the following words have the meanings indicated. 36
97+ HOUSE BILL 128 3
8998
90- (iii) Performing other administrative services.
9199
92- (3) “Student education loan” means any loan, notwithstanding any election
93-of law or designation of status in any contract, used for financing postsecondary education
94-or other postsecondary school–related expenses.
100+ (2) “Servicing” means: 1
95101
96- (4) “Student loan borrower” means:
97- LAWRENCE J. HOGAN, JR., Governor Ch. 618
102+ (i) Receiving scheduled periodic payments from a student loan 2
103+borrower according to the terms of a student education loan; 3
98104
99-– 3 –
100- (i) A resident of the State who has received or agreed to pay a
101-student education loan; or
105+ (ii) Applying the payments according to the student education loan 4
106+terms; and 5
102107
103- (ii) A resident who shares repayment responsibility with a resident
104-described under item (i) of this paragraph.
108+ (iii) Performing other administrative services. 6
105109
106- (5) “Student Loan Ombudsman” means an individual, whether a paid
107-employee or a volunteer, whom the Commissioner designates to serve as a liaison between
108-student loan borrowers and student loan servicers.
110+ (3) “Student education loan” means any loan, notwithstanding any election 7
111+of law or designation of status in any contract, used for financing postsecondary education 8
112+or other postsecondary school–related expenses. 9
109113
110- (6) (i) “Student loan servicer” means a person, regardless of location,
111-responsible for servicing a student education loan to a student loan borrower.
114+ (4) “Student loan borrower” means: 10
112115
113- (ii) “Student loan servicer” includes a trust entity performing or
114-receiving the benefit of student education loan servicing.
116+ (i) A resident of the State who has received or agreed to pay a 11
117+student education loan; or 12
115118
116-12–1001.
119+ (ii) A resident who shares repayment responsibility with a resident 13
120+described under item (i) of this paragraph. 14
117121
118- (a) In this subtitle the following words have the meanings indicated.
122+ (5) “Student Loan Ombudsman” means an individual, whether a paid 15
123+employee or a volunteer, whom the Commissioner designates to serve as a liaison between 16
124+student loan borrowers and student loan servicers. 17
119125
120- (b) (1) “Consumer” means an individual who:
126+ (6) (i) “Student loan servicer” means a person, regardless of location, 18
127+responsible for servicing a student education loan to a student loan borrower. 19
121128
122- [(1)] (I) Resides in the State; and
129+ (ii) “Student loan servicer” includes a trust entity performing or 20
130+receiving the benefit of student education loan servicing. 21
123131
124- [(2)] (II) Is seeking debt settlement services or has entered into a debt
125-settlement services agreement in connection with debts that are consumer debts, as defined
126-in § 13–101 of the Commercial Law Article.
132+12–1001. 22
127133
128- (2) “CONSUMER” INCLUDES A STUDENT L OAN BORROWER AS
129-DEFINED IN § 2–104.1 OF THIS ARTICLE.
134+ (a) In this subtitle the following words have the meanings indicated. 23
130135
131- (c) “Debt management services” has the meaning stated in § 12–901 of this title.
136+ (b) (1) “Consumer” means an individual who: 24
132137
133- (d) (1) “Debt settlement services” means any service or program represented,
134-directly or by implication, to renegotiate, settle, reduce, or in any way alter the terms of
135-payment or other terms of a debt between a consumer and one or more unsecured creditors
136-or debt collectors, including a reduction in the balance, interest rate, or fees owed by a
137-consumer to an unsecured creditor or debt collector.
138+ [(1)] (I) Resides in the State; and 25
138139
139- (2) “DEBT SETTLEMENT SERVI CES” INCLUDES STUDENT EDU CATION
140-LOAN DEBT RELIEF .
140+ [(2)] (II) Is seeking debt settlement services or has entered into a debt 26
141+settlement services agreement in connection with debts that are consumer debts, as defined 27
142+in § 13–101 of the Commercial Law Article. 28
141143
142- [(2)] (3) “Debt settlement services” does not include [debt]:
144+ (2) “CONSUMER” INCLUDES A STUDENT L OAN BORROWER AS 29
145+DEFINED IN § 2–104.1 OF THIS ARTICLE. 30
146+ 4 HOUSE BILL 128
143147
144- (I) DEBT management services;
145- Ch. 618 2022 LAWS OF MARYLAND
146148
147-– 4 –
148- (II) SERVICES OF A STUDENT LOAN SERVICER ; OR
149+ (c) “Debt management services” has the meaning stated in § 12–901 of this title. 1
149150
150- (III) SERVICES OF AN ORIGIN ATOR, A GUARANTOR , OR A
151-SERVICER OF FEDERAL EDUCATION LOANS OR P RIVATE EDUCATION LOA NS.
151+ (d) (1) “Debt settlement services” means any service or program represented, 2
152+directly or by implication, to renegotiate, settle, reduce, or in any way alter the terms of 3
153+payment or other terms of a debt between a consumer and one or more unsecured creditors 4
154+or debt collectors, including a reduction in the balance, interest rate, or fees owed by a 5
155+consumer to an unsecured creditor or debt collector. 6
152156
153- (e) “Debt settlement services agreement” means a written contract, plan, or
154-agreement between a debt settlement services provider and a consumer for the performance
155-of debt settlement services.
157+ (2) “DEBT SETTLEMENT SERVI CES” INCLUDES STUDENT EDU CATION 7
158+LOAN DEBT RELIEF . 8
156159
157- (f) “Debt settlement services fee” means a fee charged to a consumer by a debt
158-settlement services provider for providing debt settlement services for a consumer.
160+ [(2)] (3) “Debt settlement services” does not include [debt]: 9
159161
160- (g) (1) “Debt settlement services provider” means a person that provides or
161-offers to provide debt settlement services for a consumer regardless of whether the person
162-provides the debt settlement services on a for–profit or not–for–profit basis.
162+ (I) DEBT management services; 10
163163
164- (2) “DEBT SETTLEMENT SERVI CES PROVIDER” INCLUDES A PERSON
165-THAT:
164+ (II) SERVICES OF A STUDENT LOAN SERVICER ; OR 11
166165
167- (I) ENGAGES IN OR HOLDS I TSELF OUT AS ENGAGING IN THE
168-BUSINESS OF STUDENT EDUCATION LOAN DEBT RELIEF IN EXCHANGE F OR A FEE OR
169-COMPENSATION ASSESSE D AGAINST OR CHARGED TO A CONSUMER ; OR
166+ (III) SERVICES OF AN ORIGINATOR , A GUARANTOR , OR A 12
167+SERVICER OF FEDERAL EDUCATION LOANS OR P RIVATE EDUCATION LOA NS. 13
170168
171- (II) SOLICITS FOR OR ACTS ON BEHALF OF A PERSO N ENGAGING
172-IN ACTIVITIES DESCRI BED UNDER ITEM (I) OF THIS PARAGRAPH .
169+ (e) “Debt settlement services agreement” means a written contract, plan, or 14
170+agreement between a debt settlement services provider and a consumer for the performance 15
171+of debt settlement services. 16
173172
174- (3) “DEBT SETTLEMENT SERVI CES PROVIDER ” DOES NOT INCLUDE
175-AN INSTITUTION OF HI GHER EDUCATION AS DE FINED IN THE FEDERAL HIGHER
176-EDUCATION ACT OF 1965.
173+ (f) “Debt settlement services fee” means a fee charged to a consumer by a debt 17
174+settlement services provider for providing debt settlement services for a consumer. 18
177175
178- (h) “Dedicated account” means an account described in § 12–1010(d) of this
179-subtitle.
176+ (g) (1) “Debt settlement services provider” means a person that provides or 19
177+offers to provide debt settlement services for a consumer regardless of whether the person 20
178+provides the debt settlement services on a for–profit or not–for–profit basis. 21
180179
181- (i) “Offer, provide, or attempt to provide debt settlement services” means
182-providing debt settlement services:
180+ (2) “DEBT SETTLEMENT SERVI CES PROVIDER ” INCLUDES A PERSON 22
181+THAT: 23
183182
184- (1) To consumers through any means, including telephone telemarketing,
185-Internet solicitation, and face–to–face meetings; and
183+ (I) ENGAGES IN OR HOLDS I TSELF OUT AS ENGAGIN G IN THE 24
184+BUSINESS OF STUDENT EDUCATION LOAN DEBT RELIEF IN EXCHANGE F OR A FEE OR 25
185+COMPENSATION ASSESSE D AGAINST OR CHARGED TO A CONSUMER ; OR 26
186186
187- (2) On an intrastate or interstate basis.
187+ (II) SOLICITS FOR OR ACTS ON BEHALF OF A PERSO N ENGAGING 27
188+IN ACTIVITIES DESCRIB ED UNDER ITEM (I) OF THIS PARAGRAPH . 28
188189
189- (j) “Principal amount of the debt” means the amount of a debt at the time the
190-debt is included in a debt settlement services agreement.
191- LAWRENCE J. HOGAN, JR., Governor Ch. 618
190+ (3) “DEBT SETTLEMENT SERVI CES PROVIDER ” DOES NOT INCLUDE 29
191+AN INSTITUTION OF HI GHER EDUCATION AS DE FINED IN THE FEDERAL HIGHER 30
192+EDUCATION ACT OF 1965. 31
193+ HOUSE BILL 128 5
192194
193-– 5 –
194- (k) “Registrant” means a person registered under this subtitle to provide debt
195-settlement services.
196195
197- (L) “STUDENT EDUCATION LOA N” HAS THE MEANING STAT ED IN §
198-2–104.1(A) OF THIS ARTICLE.
196+ (h) “Dedicated account” means an account described in § 12–1010(d) of this 1
197+subtitle. 2
199198
200- (M) “STUDENT EDUCATION LOA N DEBT RELIEF ” MEANS OFFERING TO
201-PROVIDE ADVICE OR SE RVICE, OR ACTING AS AN INTE RMEDIARY BETWEEN OR ON
202-BEHALF OF A CONSUMER AND THE UNITED STATES DEPARTMENT OF EDUCATION,
203-ANY ORIGINATOR OR GU ARANTOR OF FEDERAL E DUCATION LOANS , OR A STUDENT
204-LOAN SERVICER , IN EXCHANGE FOR A FE E OR COMPENSATION AS SESSED AGAINST
205-OR CHARGED TO A CONS UMER, IN ORDER TO:
199+ (i) “Offer, provide, or attempt to provide debt settlement services” means 3
200+providing debt settlement services: 4
206201
207- (1) NEGOTIATE, ARRANGE, OR OBTAIN:
202+ (1) To consumers through any means, including telephone telemarketing, 5
203+Internet solicitation, and face–to–face meetings; and 6
208204
209- (I) A SETTLEMENT , ADJUSTMENT , DISCHARGE, OR
210-SATISFACTION OF A CO NSUMER’S STUDENT EDUCATION LOAN IN AN AMOUNT LE SS
211-THAN THE FULL AMOUNT OF THE PRINCIPAL AMO UNT OF THE DEBT OR T HE
212-CURRENT OUTSTANDING BALANCE OF THE DEBT ; OR
205+ (2) On an intrastate or interstate basis. 7
213206
214- (II) A REDUCTION OR ALTERATION IN :
207+ (j) “Principal amount of the debt” means the amount of a debt at the time the 8
208+debt is included in a debt settlement services agreement. 9
215209
216- 1. THE AMOUNT OF MONTHLY PAYMENT OF FEES ; OR
210+ (k) “Registrant” means a person registered under this subtitle to provide debt 10
211+settlement services. 11
217212
218- 2. THE AMOUNT OF INTERES T OWED;
213+ (L) “STUDENT EDUCATION LOA N” HAS THE MEANING STAT ED IN § 12
214+2–104.1(A) OF THIS ARTICLE. 13
219215
220- (2) ENROLL A CONSUMER IN A REPAYMENT PLAN , FORBEARANCE , OR
221-DEFERMENT OF A STUDE NT EDUCATION LOAN ;
216+ (M) “STUDENT EDUCATION LOA N DEBT RELIEF ” MEANS OFFERING TO 14
217+PROVIDE ADVICE OR SE RVICE, OR ACTING AS AN INTE RMEDIARY BETWEEN OR ON 15
218+BEHALF OF A CONSUMER AND THE UNITED STATES DEPARTMENT OF EDUCATION, 16
219+ANY ORIGINATOR OR GU ARANTOR OF FEDERAL E DUCATION LOANS , OR A STUDENT 17
220+LOAN SERVICER , IN EXCHANGE FOR A FE E OR COMPENSATION AS SESSED AGAINST 18
221+OR CHARGED TO A CONS UMER, IN ORDER TO: 19
222222
223- (3) APPLY FOR CONSOLIDATI ON OF OR CONSOLIDATE A CONSUMER’S
224-STUDENT EDUCATION LO AN; OR
223+ (1) NEGOTIATE, ARRANGE, OR OBTAIN: 20
225224
226- (4) OFFER TO PROVIDE ANY OTHER SERVICE RELATI NG TO ALTERING
227-THE TERMS OF A CONSU MER’S STUDENT EDUCATION LOAN, INCLUDING A
228-REDUCTION IN THE AMO UNT OF:
225+ (I) A SETTLEMENT , ADJUSTMENT , DISCHARGE, OR 21
226+SATISFACTION OF A CO NSUMER’S STUDENT EDUCATION LOAN IN AN AMOUNT LE SS 22
227+THAN THE FULL AMOUNT OF THE PRINCIPAL AMO UNT OF THE DEBT OR T HE 23
228+CURRENT OUTSTANDING BALANCE OF THE DEBT ; OR 24
229229
230- (I) INTEREST OWED BY THE CONSUMER ;
230+ (II) A REDUCTION OR ALTERAT ION IN: 25
231231
232- (II) THE PRINCIPAL BAL ANCE OF THE STUDENT EDUCATION
233-LOAN; OR
232+ 1. THE AMOUNT OF MONTHLY PAYMENT OF FEES ; OR 26
234233
235- (III) A MONTHLY PAYMENT OR F EE.
236- Ch. 618 2022 LAWS OF MARYLAND
234+ 2. THE AMOUNT OF INTERES T OWED; 27
237235
238-– 6 –
239- (N) “STUDENT LOAN SERVICER ” HAS THE MEANING STAT ED IN § 2–104.1(A)
240-OF THIS ARTICLE.
236+ (2) ENROLL A CONSUMER IN A REPAYMENT PLAN , FORBEARANCE , OR 28
237+DEFERMENT OF A STUDE NT EDUCATION LOAN ; 29
241238
242- [(l)] (O) “Unique identifier” means a number or another identifier assigned by
243-NMLS.
239+ (3) APPLY FOR CONSOLIDATI ON OF OR CONSOLIDATE A CONSUMER ’S 30
240+STUDENT EDUCATION LO AN; OR 31 6 HOUSE BILL 128
244241
245-2–104.1.
246242
247- (a) (1) In this section the following words have the meanings indicated.
248243
249- (3) “Student education loan” means any loan, notwithstanding any election
250-of law or designation of status in any contract, used for financing postsecondary education
251-or other postsecondary school–related expenses.
244+ (4) OFFER TO PROVIDE ANY OTHER SERVICE RELATI NG TO ALTERING 1
245+THE TERMS OF A CONSU MER’S STUDENT EDUCATION LOAN, INCLUDING A 2
246+REDUCTION IN THE AMO UNT OF: 3
252247
253-12–1001.
248+ (I) INTEREST OWED BY THE CONSUMER ; 4
254249
255- (a) In this subtitle the following words have the meanings indicated.
250+ (II) THE PRINCIPAL BALANCE OF THE STUDENT EDUCA TION 5
251+LOAN; OR 6
256252
257- (L) “STUDENT EDUCATION LOA N” HAS THE MEANING STAT ED IN §
258-2–104.1(A) OF THIS ARTICLE.
253+ (III) A MONTHLY PAYMENT OR F EE. 7
259254
260-12–1012.
255+ (N) “STUDENT LOAN SERVICER ” HAS THE MEANING STAT ED IN § 2–104.1(A) 8
256+OF THIS ARTICLE. 9
261257
262- (a) A debt settlement services agreement shall:
258+ [(l)] (O) “Unique identifier” means a number or another identifier assigned by 10
259+NMLS. 11
263260
264- (1) Be signed and dated by the registrant and the consumer; and
261+2–104.1. 12
265262
266- (2) Include, in at least 12 point type:
263+ (a) (1) In this section the following words have the meanings indicated. 13
267264
268- (i) The name, address, and telephone number of the consumer;
265+ (3) “Student education loan” means any loan, notwithstanding any election 14
266+of law or designation of status in any contract, used for financing postsecondary education 15
267+or other postsecondary school–related expenses. 16
269268
270- (ii) The name, address, and telephone number of the registrant;
269+12–1001. 17
271270
272- (iii) A description of the debt settlement services to be provided to the
273-consumer;
271+ (a) In this subtitle the following words have the meanings indicated. 18
274272
275- (iv) 1. Any debt settlement services fees to be charged to the
276-consumer; and
273+ (L) “STUDENT EDUCATION LOA N” HAS THE MEANING STAT ED IN § 19
274+2–104.1(A) OF THIS ARTICLE. 20
277275
278- 2. A statement that the registrant may not:
276+12–1012. 21
279277
280- A. Charge the consumer a fee for consultation or for obtaining
281-a consumer’s credit report; or
278+ (a) A debt settlement services agreement shall: 22
282279
283- B. Require a voluntary contribution from the consumer for
284-any service provided by the registrant; LAWRENCE J. HOGAN, JR., Governor Ch. 618
280+ (1) Be signed and dated by the registrant and the consumer; and 23
285281
286-– 7 –
282+ (2) Include, in at least 12 point type: 24
287283
288- (v) The identity of each individual creditor or debt collector whose
289-debts are included in the debt settlement services agreement and the principal amount of
290-the debt owed to each individual creditor or debt collector;
284+ (i) The name, address, and telephone number of the consumer; 25
291285
292- (vi) The principal amount of the total debt included in the debt
293-settlement services agreement;
286+ (ii) The name, address, and telephone number of the registrant; 26
287+ HOUSE BILL 128 7
294288
295- (vii) A good faith estimate of the amount of time necessary to achieve
296-the represented results;
297289
298- (viii) To the extent that the debt settlement services may include a
299-debt settlement offer to any of the consumer’s creditors or debt collectors, a good faith
300-estimate of:
290+ (iii) A description of the debt settlement services to be provided to the 1
291+consumer; 2
301292
302- 1. The time by which the registrant will make a bona fide
303-debt settlement offer to each of them; and
293+ (iv) 1. Any debt settlement services fees to be charged to the 3
294+consumer; and 4
304295
305- 2. The amount of money or percentage of each debt that the
306-consumer must accumulate before the registrant will make a bona fide debt settlement
307-offer to each of them;
296+ 2. A statement that the registrant may not: 5
308297
309- (ix) A statement that:
298+ A. Charge the consumer a fee for consultation or for obtaining 6
299+a consumer’s credit report; or 7
310300
311- 1. The consumer may withdraw from the debt settlement
312-services agreement at any time; and
301+ B. Require a voluntary contribution from the consumer for 8
302+any service provided by the registrant; 9
313303
314- 2. If a consumer withdraws from the debt settlement services
315-agreement, the registrant:
304+ (v) The identity of each individual creditor or debt collector whose 10
305+debts are included in the debt settlement services agreement and the principal amount of 11
306+the debt owed to each individual creditor or debt collector; 12
316307
317- A. May not charge a penalty; and
308+ (vi) The principal amount of the total debt included in the debt 13
309+settlement services agreement; 14
318310
319- B. May collect debt settlement services fees earned by the
320-registrant;
311+ (vii) A good faith estimate of the amount of time necessary to achieve 15
312+the represented results; 16
321313
322- (X) FOR A DEBT SETTLEMENT SERV ICES AGREEMENT FOR
323-STUDENT EDUCATION LO AN DEBT RELIEF , A STATEMENT IN SUBST ANTIALLY THE
324-FOLLOWING FORM :
314+ (viii) To the extent that the debt settlement services may include a 17
315+debt settlement offer to any of the consumer’s creditors or debt collectors, a good faith 18
316+estimate of: 19
325317
326- “(NAME OF COMPANY ) IS A PRIVATE COMPANY , AND IS NOT AFFILIATE D WITH
327-THE UNITED STATES DEPARTMENT OF EDUCATION OR ANY OTHE R ACADEMIC
328-ENTITY OR GOVERNMENT AL AGENCY. (NAME OF COMPANY ) IS NOT A LENDER ,
329-GUARANTOR , OR SERVICER OF FEDER AL STUDENT LOANS . YOU CAN APPLY FOR
330-CONSOLIDATION AND OT HER REPAYMENT PLANS WITHOUT PAID ASSISTA NCE
331-THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION. MORE
332-INFORMATION IS AVAILA BLE ON THE DEPARTMENT ’S WEBSITE OR THROUGH YOUR Ch. 618 2022 LAWS OF MARYLAND
318+ 1. The time by which the registrant will make a bona fide 20
319+debt settlement offer to each of them; and 21
333320
334-– 8 –
335-FEDERAL STUDENT LOAN SERVICER. YOU CAN FIND OUT WHO YOUR SERVICER IS
336-THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION.”;
321+ 2. The amount of money or percentage of each debt that the 22
322+consumer must accumulate before the registrant will make a bona fide debt settlement 23
323+offer to each of them; 24
337324
338- [(x)] (XI) If the registrant requests or requires the consumer to
339-deposit funds in a dedicated account, a statement that:
325+ (ix) A statement that: 25
340326
341- 1. The consumer owns the funds held in the account,
342-including any accrued interest; and
327+ 1. The consumer may withdraw from the debt settlement 26
328+services agreement at any time; and 27
343329
344- 2. If the consumer requests to withdraw from the debt
345-settlement services agreement, within 7 days after the request, all funds in the account,
346-including accrued interest, less any debt settlement services fees earned by the registrant
347-in compliance with § 12–1010 of this subtitle, must be paid to the consumer; and
330+ 2. If a consumer withdraws from the debt settlement services 28
331+agreement, the registrant: 29
348332
349- [(xi)] (XII) A statement that the consumer may be required to pay
350-taxes on the amount by which the consumer’s debt is reduced.
333+ A. May not charge a penalty; and 30
351334
352- (b) (1) The disclosures required under subsection (a)(2)(vii) through [(xi)] (XII)
353-of this section shall be provided to the consumer in a clear and conspicuous manner in the
354-debt settlement services agreement.
335+ B. May collect debt settlement services fees earned by the 31
336+registrant; 32 8 HOUSE BILL 128
355337
356- (2) A REGISTRANT REQUIRED TO MAKE A DISCLOSURE UNDER
357-SUBSECTION (A)(2)(X) OF THIS SECTION SHAL L MAKE SUBSTANTIALLY THE SAME
358-STATEMENT ORALLY TO THE CONSUMER BEFORE THE AGREEMENT IS SIG NED.
359338
360-12–1012.1.
361339
362- A DEBT SETTLEMENT SERV ICES PROVIDER ENGAGE D IN STUDENT EDUCATI ON
363-LOAN DEBT RELIEF MAY NOT:
340+ (X) FOR A DEBT SETTLEMENT SERVICES AGREEMENT FOR 1
341+STUDENT EDUCATION LO AN DEBT RELIEF , A STATEMENT IN SUBST ANTIALLY THE 2
342+FOLLOWING FORM : 3
364343
365- (1) ADVISE, EXPRESSLY OR BY IMPL ICATION, THAT A CONSUMER
366-STOP MAKING PAYMENTS OR STOP COMMUNICATIN G WITH THE CONSUMER ’S
367-STUDENT LOAN SERVICE R; OR
344+ “(NAME OF COMPANY ) IS A PRIVATE COMPANY , AND IS NOT AFFILIATE D WITH 4
345+THE UNITED STATES DEPARTMENT OF EDUCATION OR ANY OTHE R ACADEMIC 5
346+ENTITY OR GOVERNMENTAL AGENCY. (NAME OF COMPANY ) IS NOT A LENDER , 6
347+GUARANTOR , OR SERVICER OF FEDER AL STUDENT LOANS . YOU CAN APPLY FOR 7
348+CONSOLIDATION AND OT HER REPAYMENT PLANS WITHOUT PAID ASSISTA NCE 8
349+THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION. MORE 9
350+INFORMATION IS AVAILABLE ON THE DEPARTMENT ’S WEBSITE OR THROUGH YOUR 10
351+FEDERAL STUDENT LOAN SERVICER. YOU CAN FIND OUT WHO YOUR SERVICER IS 11
352+THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION.”; 12
368353
369- (2) ACCESS OR OBTAIN A CONSUMER ’S STUDENT AID INFORM ATION
370-IN VIOLATION OF FEDE RAL LAW.
354+ [(x)] (XI) If the registrant requests or requires the consumer to 13
355+deposit funds in a dedicated account, a statement that: 14
371356
372-12–1013.
357+ 1. The consumer owns the funds held in the account, 15
358+including any accrued interest; and 16
373359
374- (A) An advertisement for debt settlement services shall include clearly and
375-conspicuously a disclosure that, to the extent that any aspect of the debt settlement services
376-relies on or results in the consumer’s failure to make timely payments to the consumer’s
377-creditors or debt collectors, the use of the debt settlement services:
360+ 2. If the consumer requests to withdraw from the debt 17
361+settlement services agreement, within 7 days after the request, all funds in the account, 18
362+including accrued interest, less any debt settlement services fees earned by the registrant 19
363+in compliance with § 12–1010 of this subtitle, must be paid to the consumer; and 20
378364
379- (1) Will likely adversely affect the consumer’s creditworthiness; LAWRENCE J. HOGAN, JR., Governor Ch. 618
365+ [(xi)] (XII) A statement that the consumer may be required to pay 21
366+taxes on the amount by which the consumer’s debt is reduced. 22
380367
381-– 9 –
368+ (b) (1) The disclosures required under subsection (a)(2)(vii) through [(xi)] (XII) 23
369+of this section shall be provided to the consumer in a clear and conspicuous manner in the 24
370+debt settlement services agreement. 25
382371
383- (2) May result in the consumer being subject to collections or being sued by
384-creditors or debt collectors; and
372+ (2) A REGISTRANT REQUIRED TO MAKE A DISCLOSURE UNDER 26
373+SUBSECTION (A)(2)(X) OF THIS SECTION SHAL L MAKE SUBSTANTIALLY THE SAME 27
374+STATEMENT ORALLY TO THE CONSUMER BEFORE THE AGREEMENT IS SIG NED. 28
385375
386- (3) May increase the amount of money the consumer owes due to the
387-accrual of fees and interest by creditors or debt collectors.
376+12–1012.1. 29
388377
389- (B) AN ADVERTISEMENT FOR DEBT SETTLEMENT SERVICES FOR STUDENT
390-EDUCATION LOAN DEBT RELIEF SHALL INCLUDE CLEARLY AND CONSPICU OUSLY A
391-DISCLOSURE IN SUBSTA NTIALLY THE FOLLOWIN G FORM:
378+ A DEBT SETTLEMENT SERV ICES PROVIDER ENGAGE D IN STUDENT EDUCATI ON 30
379+LOAN DEBT RELIEF MAY NOT: 31
392380
393- “(NAME OF COMPANY ) IS A PRIVATE COMPANY , AND IS NOT AFFILIATE D WITH
394-THE UNITED STATES DEPARTMENT OF EDUCATION OR ANY OTHER ACADEMI C
395-ENTITY OR GOVERNMENT AL AGENCY. (NAME OF COMPANY ) IS NOT A LENDER ,
396-GUARANTOR , OR SERVICER OF FEDER AL STUDENT LOANS . YOU CAN APPLY FOR
397-CONSOLIDATION AND OT HER REPAYMENT PLANS WITHOUT PAID ASSISTA NCE
398-THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION. MORE
399-INFORMATION IS AVAIL ABLE ON THE DEPARTMENT ’S WEBSITE OR THROUGH YOUR
400-FEDERAL STUDENT LOAN SERVICER. YOU CAN FIND OUT WHO YOUR SERVICER IS
401-THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION.”.
381+ (1) ADVISE, EXPRESSLY OR BY IMPL ICATION, THAT A CONSUMER 32
382+STOP MAKING PAYMENTS OR STOP COMMUNICATIN G WITH THE CONSUMER ’S 33
383+STUDENT LOAN SERVICE R; OR 34 HOUSE BILL 128 9
402384
403- SECTION 2. 3. AND BE IT FURTHER ENACTED, Th at this Act shall take effect
404-October 1, 2022.
405385
406-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
386+
387+ (2) ACCESS OR OBTAIN A CONSUMER ’S STUDENT AID INFORM ATION 1
388+IN VIOLATION OF FEDE RAL LAW. 2
389+
390+12–1013. 3
391+
392+ (A) An advertisement for debt settlement services shall include clearly and 4
393+conspicuously a disclosure that, to the extent that any aspect of the debt settlement services 5
394+relies on or results in the consumer’s failure to make timely payments to the consumer’s 6
395+creditors or debt collectors, the use of the debt settlement services: 7
396+
397+ (1) Will likely adversely affect the consumer’s creditworthiness; 8
398+
399+ (2) May result in the consumer being subject to collections or being sued by 9
400+creditors or debt collectors; and 10
401+
402+ (3) May increase the amount of money the consumer owes due to the 11
403+accrual of fees and interest by creditors or debt collectors. 12
404+
405+ (B) AN ADVERTISEMENT FOR DEBT SETTLE MENT SERVICES FOR ST UDENT 13
406+EDUCATION LOAN DEBT RELIEF SHALL INCLUDE CLEARLY AND CONSPICU OUSLY A 14
407+DISCLOSURE IN SUBSTA NTIALLY THE FOLLOWIN G FORM: 15
408+
409+ “(NAME OF COMPANY ) IS A PRIVATE COMPANY , AND IS NOT AFFILIATE D WITH 16
410+THE UNITED STATES DEPARTMENT OF EDUCATION OR ANY OTHER ACADEMI C 17
411+ENTITY OR GOVERNMENT AL AGENCY. (NAME OF COMPANY ) IS NOT A LENDER , 18
412+GUARANTOR , OR SERVICER OF FEDER AL STUDENT LOANS . YOU CAN APPLY FOR 19
413+CONSOLIDATION AND OT HER REPAYMENT PLANS WITHOUT PAID ASSISTA NCE 20
414+THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION. MORE 21
415+INFORMATION IS AVAIL ABLE ON THE DEPARTMENT ’S WEBSITE OR THROUGH YOUR 22
416+FEDERAL STUDENT LOAN SERVICER. YOU CAN FIND OUT WHO YOUR SERVICER IS 23
417+THROUGH THE UNITED STATES DEPARTMENT OF EDUCATION.”. 24
418+
419+ SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
420+October 1, 2022. 26
421+