This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
HB 667 Credit Counseling Services
1) Economic Development, Trade & Banking Committee
2) Business Regulation Committee
3) Finance & Tax Committee
4) Commerce Council
Credit counseling services generally advertise a service intended to assist people in managing their personal
debt. Credit counseling services may attempt to help an individual avoid foreclosure and bankruptcy, reduce
interest rates, and lower or consolidate monthly payments.
This bill creates a definition for “creditor contribution” to mean any sum that a creditor agrees to contribute to a
credit counseling agency towards amounts due the creditor by the debtor. In addition, it prevents the allocation
of such credit contribution against the debtor’s payment account to the creditor.
The bill adds “negotiation” and “settlement” to the definition of debt management services.
The bill removes a cap limiting fees that may be charged to out-of-state customers.
The bill allows a debt management service or credit counseling to charge a reasonable and separate fee for
insufficient funds transactions.
This bill expands the current requirement that any person engaged in debt management services or credit
counseling services obtain an annual audit of all accounts in which the funds of debtors are deposited and
subsequently disbursed to creditors, to include other accounts.
Finally, the bill authorizes a debt management or credit counseling service to deduct any creditor contributions
from all funds it is req