PAWNBROKERS AND MONEYLENDERS
DEBT ADJUSTMENT SERVICES
399-D:16 Provisions Applicable to Debt Settlement Plans Under This Chapter.
I. A licensee shall not be entitled to any fee until the contract has been in effect for at least 30 days, and thereafter, the monthly amortized fee may be charged at 30-day intervals for the term of contract, except in the event of prepayment or cancellation thereof.
II. The licensee's fees shall be based on the total indebtedness as stated in the contract and shall not exceed 15 percent.
III. The licensee shall remit funds to creditors, less the licensee's prorated fees within 10 calendar days of receipt of a negotiated settlement.
IV. The licensee shall provide the debtor with a written statement of the debtor's account:
(a) Every 90 days;
(b) Upon the debtor's verbal request at any time during the contract term; and
(c) At the termination or cancellation of the contract.
V. No licensee shall execute a contract unless a completed, written budget analysis indicates the debtor can meet the requirements of the debt settlement plan.
VI. Each licensee shall maintain a separate, pooled bank account for the debtors' benefit in which all debtors' payments shall be deposited within 24 hours of receipt thereof. All such payments shall remain in such bank account until the licensee remits funds to either a debtor or creditor thereof.
Source. 2016, 151:1, eff. Jan. 1, 2017.