Debt Management Services
A provider may not provide debt-management services to an individual who it reasonably should know resides in Utah at the time it agrees to provide the services, unless the provider is registered under the Uniform Debt-Management Services Act.
Debt management service providers are companies that offer to help a consumer get out of debt quicker through one or more of the following: negotiating lower interest rates on credit balances, forgiveness of late fees and other penalties, reduction of principle balances.
Frequently Asked Questions
The results of a criminal records check, including fingerprints, conducted within the immediately preceding 12 months, covering every officer, employee, or agent of the applicant who is authorized to have access to the trust account(s).
Provide written notice to the Division and include the following information:
- Surety bond continuation certificate for 2 years from the date the Division recieves notice,
- the date the organization ceased business in Utah,
- and refund any unexpended money to consumers or turn account over to another debt management company registered in UT.
No, it is a prohibited act and practice.
§§ 13-42-128. Prohibited acts and practices.
- A provider may not, directly or indirectly:
- offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement;
- offer, pay, or give a gift or bonus, premium, reward, or other compensation to a lead generator or other person for referring a prospective customer, if the person making the referral:
- has a financial interest in the outcome of debt-management services provided to the customer, unless neither the provider nor the person making the referral communicates to the prospective customer the identity of the source of the referral; or
- compensates its employees on the basis of a formula that incorporates the number of individuals the employee refers to the provider;
- receive a bonus, commission, or other benefit for referring an individual to a person;
- structure a plan in a manner that would result in a negative amortization of any of an individual's debts, unless a creditor that is owed a negatively amortizing debt agrees to refund or waive the finance charge on payment of the principal amount of the debt;
- compensate its employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements.