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     House of Representatives State of Utah



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         P.O. BOX 145030 . SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029         February 1, 2012

Madam Speaker:

    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 :    

             689          (6)

{   (a)   } Except as otherwise provided in Subsections (3) and (4), if an agreement

2.    Page 23, Line 691 through Page 24, Line 714 :    

             691      the debt
{   ,   }        :

compensation for services in connection with settling a debt      {   may not 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.  
  shall be reasonable and clearly disclosed in the agreement; and

    (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).  


    Jim Bird
    Committee Chair
Voting: 4-0-3
3 HB0078.HC1.wpd 2/1/12 9:37 am /BNC RHR/RCN

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