13-42-123. Fees and other charges.
(1) A provider may not impose directly or indirectly a fee or other charge on an
individual or receive money from or on behalf of an individual for debt-management services
except as permitted by this section.
(2) A provider may not impose charges or receive payment for debt-management
services until the provider and the individual have signed an agreement that complies with
Sections 13-42-119 and 13-42-128.
(3) If an individual assents to an agreement, a provider may not impose a fee or other
charge for educational or counseling services, or the like, except as otherwise provided in this
Subsection (3) and Subsection 13-42-128(4). The administrator may authorize a provider to
charge a fee based on the nature and extent of the educational or counseling services furnished by
the provider.
(4) Subject to adjustment of dollar amounts pursuant to Subsection 13-42-132(6), the
following rules apply:
(a) If an individual assents to a plan that contemplates that creditors will reduce finance
charges or fees for late payment, default, or delinquency, the provider may charge:
(i) a fee not exceeding $50 for consultation, obtaining a credit report, setting up an
account, and the like; and
(ii) a monthly service fee, not to exceed $10 times the number of accounts remaining in a
plan at the time the fee is assessed, but not more than $50 in any month.
(b) If an individual assents to an agreement that contemplates that creditors will settle
debts for less than the principal amount of the debt, a provider may charge:
(i) subject to Subsection 13-42-119(4), a fee for consultation, obtaining a credit report,
setting up an account, and the like, in an amount not exceeding the lesser of $400 and 4% of the
debt in the plan at the inception of the plan; and
(ii) a monthly service fee, not to exceed $10 times the number of accounts remaining in a
plan at the time the fee is assessed, but not more than $50 in any month.
(c) A provider may not impose or receive fees under both Subsections (4)(a) and (b).
(d) Except as otherwise provided in Subsection 13-42-128(4), if an individual does not
assent to an agreement, a provider may receive for educational and counseling services it
provides to the individual a fee not exceeding $100 or, with the approval of the administrator, a
larger fee. The administrator may approve a fee larger than $100 if the nature and extent of the
educational and counseling services warrant the larger fee.
(5) If, before the expiration of 90 days after the completion or termination of educational
or counseling services, an individual assents to an agreement, the provider shall refund to the
individual any fee paid pursuant to Subsection (4)(d).
(6) (a) Except as otherwise provided in Subsections (3) and (4), if an agreement
contemplates that creditors will settle an individual's debts for less than the principal amount of
the debt, compensation for services in connection with settling a debt may not exceed one of the
following applicable settlement fee limits in Subsection (6)(b) or (c), the terms of which shall be
clearly disclosed in the agreement.
(b) (i) With respect to agreements where a flat settlement fee is charged based on the
overall amount of included debt, total aggregate fees charged may not exceed 17% of the
principal amount of debt included in the agreement, including any fees charged under
Subsections (4)(b)(i) and (ii).
(ii) The flat settlement fee authorized under this Subsection (6)(b) shall be assessed in
equal monthly payments over no less than half of the length of the plan, as estimated at the plan's
inception, unless:
(A) payment is voluntarily accelerated by the individual in a separate record; and
(B) at least half of the principal amount of overall debt included in the agreement at its
inception has been settled.
(c) (i) With respect to agreements where fees are calculated as a percentage of the
amount saved by an individual, a settlement fee may not exceed 30% of the excess of the
outstanding amount of each debt over the amount actually paid to the creditor, as calculated at
the time of settlement.
(ii) Settlement fees authorized under this Subsection (6)(c):
(A) may be collected only as debts are settled; and
(B) the total aggregate amount of fees charged to any individual under this chapter,
including fees charged under Subsections (4)(b)(i) and (ii), may not exceed 20% of the principal
amount of debt included in the agreement at the agreement's inception.
(d) A provider may not impose or receive fees under both Subsections (6)(b) and (c).
(7) Subject to adjustment of the dollar amount pursuant to Subsection 13-42-132(6), if a
payment to a provider by an individual under this chapter is dishonored, a provider may impose a
reasonable charge on the individual, not to exceed the lesser of $25 and the amount permitted by
law other than this chapter.
Amended by Chapter 229, 2009 General Session
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Last revised: Thursday, May 28, 2009