Handling of consumer funds

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

§6175. Handling of consumer funds

1.  Funds deposited in trust account.  The debt management service provider shall deposit, within 2 business days of receipt, all funds received from or on behalf of a consumer for payment to a creditor or creditors in a federally insured trust account for the benefit of the consumer in a supervised financial organization. Any trust account established to receive consumer funds is free from trustee process and unavailable to creditors of the debt management service provider.  

[PL 1999, c. 560, §3 (NEW).]

2.  Requirements for handling of funds.  The debt management service provider shall:  

A. Maintain separate records of account for each consumer receiving debt management services;   [PL 1999, c. 560, §3 (NEW).]

B. Remit funds received from or on behalf of a consumer to the consumer's creditor or creditors within 15 business days of receipt of the funds; and   [PL 1999, c. 560, §3 (NEW).]

C. Correct or remedy any misdirected payments resulting from an error by the debt management service provider and reimburse the consumer for any actual costs or fees imposed by a creditor as a result of such misdirection.   [PL 1999, c. 560, §3 (NEW).]

[PL 1999, c. 560, §3 (NEW).]

3.  Commingling of funds.  The debt management service provider may not commingle trust accounts established for the benefit of consumers with any operating accounts of the debt management service provider.  

[PL 1999, c. 560, §3 (NEW).]

SECTION HISTORY

PL 1999, c. 560, §3 (NEW).


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