House of Representatives
State of Utah
UTAH STATE CAPITOL COMPLEX . 350 STATE CAPITOL
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P.O. BOX 145030 . SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029 February 1, 2012
The Workforce Services and Community and Economic Development Committee reports a
favorable recommendation on H.B. 78, UTAH DIVISION OF CONSUMER PROTECTION
AMENDMENTS, by Representative D. Brown, with the following amendments:
1. Page 23, Line 689 :
Except as otherwise provided in Subsections (3) and (4), if an
2. Page 23, Line 691 through Page 24, Line 714 :
691 the debt
exceed one of
692 the following applicable settlement fee limits in Subsection (6)(b) or (c), the terms of which
693 shall be clearly disclosed in the agreement. }
(b) a fee for settling a debt may be collected only as the debt is settled.
(b) (i) With respect to agreements where a flat settlement fee is charged
based on the
695 overall amount of included debt, total aggregate fees charged may not exceed 17% of the
696 principal amount of debt included in the agreement[, including any fees charged under
697 Subsections (4)(b)(i) and (ii)].
698 (ii) The flat settlement fee authorized under this Subsection (6)(b) [shall be assessed in
699 equal monthly payments over no less than half of the length of the plan, as estimated at the
700 plan's inception, unless:] may be collected only upon the settlement of all debt included in the
701 settlement fee agreement.
702 [(A) payment is voluntarily accelerated by the individual in a separate record; and]
703 [(B) at least half of the principal amount of overall debt included in the agreement at its
704 inception has been settled.]
705 (c) (i) With respect to agreements where fees are calculated as a percentage of the
706 amount saved by an individual, a settlement fee may not exceed 30% of the excess of the
707 outstanding amount of each debt over the amount actually paid to the creditor, as calculated at
708 the time of settlement.
709 (ii) Settlement fees authorized under this Subsection (6)(c):
710 (A) may be collected only as debts are settled; and
711 (B) the total aggregate amount of fees charged to any individual under this chapter[,
712 including fees charged under Subsections (4)(b)(i) and (ii),] may not exceed 20% of the
713 principal amount of debt included in the agreement at the agreement's inception.
714 (d) A provider may not impose or receive fees under both Subsections (6)(b) and (c). }
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