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RULE §33.53 Exemption for Debt Management Service Providers

Published: 2015

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(a) For purposes of this section, the terms "debt management service" and "provider" have the meanings assigned by Texas Finance Code §394.202. (b) A debt management service provider who, in the course of conducting its debt management services, receives money from consumers for distribution to the consumer's creditors need not obtain a money transmission license if that provider:   (1) is registered and in good standing with the Office of Consumer Credit Commissioner as a debt management service provider under Finance Code Chapter 394;   (2) is in compliance with all requirements of Finance Code Chapter 394 and 7 TAC Chapter 88 (relating to Consumer Debt Management Services); and   (3) conducts no money transmission as defined by Finance Code §151.301, except as necessary to provide debt management services to contractual customers. (c) Any debt management service provider who receives money from consumers and who is exempted from registration by the Office of Consumer Credit Commissioner for any reason, including under Finance Code §394.203(c)(5), must contact the Department of Banking to seek a determination as to whether a money transmission license is required. (d) Any debt management service provider exempted from money transmission licensing under subsection (b) of this section must immediately contact the Department of Banking in the event that any of the conditions listed in subsection (b) of this section change.

Source Note: The provisions of this §33.53 adopted to be effective January 5, 2012, 36 TexReg 9285