Print

The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

083

:
DEBT ADJUSTERS











 

§

2760b. Prohibited activities

(a) No person,

partnership, association, corporation, or other entity, except a licensee, may

make any representation, directly or indirectly, orally or in writing that he,

she, or it is licensed under this chapter.

(b) No licensee

shall advertise its services in any media, whether print or electronic, in any

manner that may be false or deceptive. All such advertisements shall contain

the name and office address of such entity, which shall conform to a name and

address on record with the Department and which shall indicate that the

licensee is licensed by the Department.

(c) No person or

any other entity, other than a licensee, shall use the title "debt

adjuster," "budget planner," "licensed debt adjuster,"

or "licensed budget planner" or the term "debt adjuster,"

"debt reduction," or "budget planning" in any public

advertisement, business card, or letterhead.

(d) No licensee

shall commingle monies received from debtors with any other funds associated

with the operation of its business or with any funds associated with any other

type of business; provided, however, that for the sole purpose of making a

single payment to a creditor, a licensee may commingle monies received from

debtors under contract with one or more of its affiliates authorized to engage

in debt adjustment in another state.

(e) No licensee

shall structure an agreement for the debtor that, at the conclusion of the

agreement, would result in negative amortization of any of the debtor's

obligations to any creditor.

(f) No licensee,

or a director, manager, or officer of such licensee, or any immediate family

member of such individual, or a controlling party of such licensee shall

purchase any obligation of a debtor.

(g) No licensee,

or a director, manager, or officer of such licensee, or any immediate family

member of such individual, or a controlling party of such licensee shall lend

money or provide credit to the debtor.

(h) No licensee,

or a director, manager, or officer of such licensee, or any immediate family member

of such individual, or a controlling party of such licensee shall obtain a

mortgage or other security interest in property of the debtor.

(i) No licensee

shall operate as a person or entity seeking payment of obligations on behalf of

any creditors that are not receiving payments pursuant to a contract between a

debtor and a licensee.

(j) No licensee

shall execute any contract or agreement to be signed by the debtor unless the

contract or agreement is fully completed, and the duration of any such contract

shall be in conformance with any limitations specified pursuant to regulations

of the Commissioner.

(k) No licensee

shall pay any bonus or other consideration to any person or entity for the

referral of a debtor to its business, or accept or receive any bonus,

commission, or other consideration for referring any debtor to any person or

entity for any reason; provided, however, that nothing herein shall prohibit

the payment of rebates from creditors to licensees.

( l) No licensee

shall disclose or threaten to disclose information concerning the existence of

a debt or any other conduct which could coerce payment of the debt of a debtor

with whom it has a contract.

(m) No licensee

shall use a communication that simulates in any manner a legal or judicial process,

or which gives the false appearance of being authorized, issued, or approved by

a government, a governmental agency, or an attorney-at-law.

(n) No licensee,

or a director, a manager, or an officer of such licensee, or any immediate

family member of such individual, or a controlling party of such licensee,

shall be a director, a manager, an officer, an owner, or a controlling party of

any creditor or a subsidiary of any such creditor, that is receiving or will

receive payments from the licensee on behalf of a debtor with whom the licensee

has contracted, without the express written consent of the Commissioner. (Added

2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)