HB 24-1251

House Bill 24-1251, which has been approved and will take effect on August 7, 2024, extends the regulation of debt-management service providers until 2035. It also requires these providers to keep records of financial education given to consumers, mandates that settlement agreements between consumers and creditors be in writing, and sets fees for providers through administrative processes rather than rule-making. This bill affects anyone using debt-management services and aims to ensure better consumer protection and transparency in handling debts.

Official Summary

The act implements the recommendations in the 2023 sunset report by the department of regulatory agencies by: Continuing the regulation of debt-management service providers for 11 years, to 2035; Requiring a debt-management service provider to maintain records of the education provided to an individual; Requiring settlement agreements between a consumer and creditor to be in writing; and Requiring fees paid by debt-management service providers to be set administratively instead of through the rule-making process. APPROVED by Governor May 22, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

Votes