FIRST REGULAR SESSION
94TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE CUNNINGHAM (145).
Read 1st time January 11, 2007 and copies ordered printed.
D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To repeal sections 425.010 and 425.020, RSMo, and to enact in lieu thereof three new sections relating to debt adjusters, with a penalty provision.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 425.010 and 425.020, RSMo, are repealed and three new sections enacted in lieu thereof, to be known as sections 425.010, 425.020, and 425.025, to read as follows:
425.010. As used in this chapter, the following terms mean:
(1) "Debt adjuster", a person who acts or offers to act for a consideration as an intermediary between a debtor and his creditors for the purpose of settling, compounding, or in any wise altering the terms of payment of any debts of the debtor; and to that end receives money or other property from the debtor, or on behalf of the debtor, for payment to, or distribution among, the creditors of the debtor;
(2) "Debt management plan" or "DMP", a written agreement or contract between a debt adjuster and a debtor whereby the debt adjuster agrees to provide its services as such to the debtor in return for payment by the debtor of no more than reasonable consideration;
(3) "Debtor", an individual or individuals jointly and severally or jointly or severally indebted;
(4) "Reasonable consideration", a fee or contribution to cover the cost of administering a debt management plan, not to exceed:
(a) Fifty dollars for an initial or set-up fee or charge for establishing a DMP; and
(b) The greater of thirty-five dollars per month or eight percent of the amount distributed monthly to creditors under such DMP.
425.020. Any person who acts or offers to act as a debt adjuster in this state other than under a debt management plan is guilty of a misdemeanor and upon conviction shall be punished as provided by law.
425.025. A debt adjuster shall waive the consideration established under subdivision (4) of section 425.010 if a debtor is not able to pay such fee.
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