Limits on fees and charges

Checkout our iOS App for a better way to browser and research.

§6174-A. Limits on fees and charges

1.  Initial fee.  A debt management service provider may charge to a consumer a reasonable one-time initial or set-up fee in an amount not to exceed $75.  

[PL 2007, c. 36, §8 (NEW).]

2.  Service fees.  In addition to the fee set forth in subsection 1, a debt management service provider may assess either of the following fees:  

A. For a debt management service provider that distributes monthly payments to a consumer's creditor or creditors, a reasonable monthly fee not to exceed $40; or   [PL 2007, c. 36, §8 (NEW).]

B. For a debt management service provider that acts or offers to act as an intermediary between a consumer and one or more creditors of the consumer for the purpose of adjusting, settling, discharging, reaching a compromise on or otherwise altering the terms of payment of the consumer's obligation, a reasonable fee not to exceed 15% of the amount by which the consumer's debt is reduced as part of each settlement.   [PL 2007, c. 36, §8 (NEW).]

[PL 2007, c. 36, §8 (NEW).]

3.  Limitation on excess fees.  A debt management service provider may not charge more than one fee authorized under subsections 1 and 2 on the basis that the consumer has entered into a debt management services agreement for joint obligations of a consumer and a consumer's spouse or other member of the consumer's household.  

[PL 2007, c. 36, §8 (NEW).]

4.  Application.  This section does not apply to a debt management service provider located in this State that does not provide debt management services to a consumer who is a resident of this State.  

[PL 2007, c. 36, §8 (NEW).]

SECTION HISTORY

PL 2007, c. 36, §8 (NEW).


Download our app to see the most-to-date content.