(a) A provider may not, directly or indirectly:
(1) Misappropriate or misapply money held in trust;
(2) Settle a debt on behalf of an individual for more than 50 percent of the amount of the debt owed a creditor, unless the individual assents to the settlement after the creditor has assented;
(3) Take a power of attorney that authorizes it to settle a debt, unless the power of attorney expressly limits the provider's authority to settle debts for not more than 50 percent of the amount of the debt owed a creditor;
(4) Exercise or attempt to exercise a power of attorney after an individual has terminated an agreement;
(5) Initiate a transfer from an individual's account at a bank or with another person unless the transfer is:
(A) A return of money to the individual; or
(B) Before termination of an agreement, properly authorized by the agreement and this chapter, and for:
(i) Payment to one or more creditors pursuant to a plan; or
(ii) Payment of a fee;
(6) Offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement;
(7) Offer, pay, or give a gift or bonus, premium, reward, or other compensation to a 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;
(8) Receive a bonus, commission, or other benefit for referring an individual to a person;
(9) 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 upon payment of the principal amount of the debt;
(10) Compensate its employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements;
(11) Settle a debt or lead an individual to believe that a payment to a creditor is in settlement of a debt to the creditor unless, at the time of settlement, the individual receives a certification by the creditor that the payment is in full settlement of the debt;
(12) Make a representation that:
(A) The provider will furnish money to pay bills or prevent attachments;
(B) Payment of a certain amount will permit satisfaction of a certain amount or range of indebtedness; or
(C) Participation in a plan will or may prevent litigation, garnishment, attachment, repossession, foreclosure, eviction, or loss of employment;
(13) Misrepresent that it is authorized or competent to furnish legal advice or perform legal services;
(14) Represent that it is a not-for-profit entity unless it is organized and properly operating as a not-for-profit under the law of the state in which it was formed or that it is a tax-exempt entity unless it has received certification of tax-exempt status from the United States Internal Revenue Service;
(15) Take a confession of judgment or power of attorney to confess judgment against an individual; or
(16) Employ an unfair, unconscionable, or deceptive act or practice, including the knowing omission of any material information.
(b) If a provider furnishes debt-management services to an individual, the provider may not, directly or indirectly:
(1) Purchase a debt or obligation of the individual;
(2) Receive from or on behalf of the individual:
(A) A promissory note or other negotiable instrument other than a check or a demand draft; or
(B) A post-dated check or demand draft;
(3) Lend money or provide credit to the individual, except as a deferral of a settlement fee at no additional expense to the individual;
(4) Obtain a mortgage or other security interest from any person in connection with the services provided to the individual;
(5) Except as permitted by federal law, disclose the identity or identifying information of the individual or the identity of the individual's creditors, except to:
(A) The Attorney General, upon proper demand;
(B) A creditor of the individual, to the extent necessary to secure the cooperation of the creditor in a plan; or
(C) The extent necessary to administer the plan;
(6) Except as otherwise provided in § 2423A(f) of this section, provide the individual less than the full benefit of a compromise of a debt arranged by the provider;
(7) Charge the individual for or provide credit or other insurance, coupons for goods or services, membership in a club, access to computers or the Internet, or any other matter not directly related to debt-management services or educational services concerning personal finance;
(8) Furnish legal advice or perform legal services, unless the person furnishing that advice to or performing those services for the individual is licensed to practice law; or
(9) Advise, encourage, or suggest to the individual not to make payment to creditors while under the plan.
(c) This chapter does not authorize any person to engage in the practice of law.
(d) A provider may not receive a gift or bonus, premium, reward or other compensation, directly or indirectly, for advising, arranging, or assisting an individual in connection with obtaining an extension of credit or other service from a lender or service provider, except for educational or counseling services required in connection with a government-sponsored program.
(e) Unless a person supplies goods, services, or facilities generally and supplies them to the provider at a cost no greater than the cost the person generally charges to others, a provider may not purchase goods, services, or facilities from the person if an employee or a person that the provider should reasonably know is an affiliate of the provider:
(1) Owns more than 10 percent of the person; or
(2) Is an employee or affiliate of the person.