"Debt settlement services" defined.

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"Debt settlement services" means debt-management services which contemplate that:

1. Regular, periodic payments will be made by or on behalf of the individual to whom the services are being provided;

2. The individual will accumulate such payments in a bank account which is insured by the Federal Deposit Insurance Corporation, owned by the individual and not controlled by the provider; and

3. The individual will use the accumulated amount of the payments made pursuant to subsection 1 to make payments to:

(a) The provider for any fees charged by the provider pursuant to NRS 676A.580; and

(b) Creditors in order to settle the debts of the individual for less than the principal amount of the debt.

(Added to NRS by 2009, 1972)


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