HCS HB 329 -- DEBT ADJUSTERS

SPONSOR:  Cunningham (145)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Financial Institutions by a vote of 9 to 0.

This substitute allows a debt adjuster, working under a debt
management plan, to act as an intermediary between a debtor and
his or her creditors for the purpose of settling debts.  The debt
adjuster can charge a reasonable administration fee if the debtor
is able to pay.

Debt adjusters will be required to provide a blanket bond of at
least $100,000 for the benefit of any debtor who is damaged by a
debt adjuster.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill will allow consumer
credit counseling businesses to charge a fee to consumers if they
can afford to pay it.  A new federal law prohibits these
companies from asking for a donation, so there needs to be
something in statute to allow these business to charge a fee to
stay in business.  Credit counseling companies help many
consumers get out of debt.

Testifying for the bill were Representative Cunningham (145);
Mike Cherry, Consumer Credit Counseling of Springfield; and Mark
Guimond, American Association of Debt Management Organizations.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that it does not
present any significant regulatory burden, and debt adjusters
should be bonded.  Recent federal law changes permit debtors to
compensate debt adjusters.

Testifying on the bill was Division of Finance, Department of
Insurance, Financial Institutions, and Professional Registration.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am