Mississippi Reenacts Debt Management Services Act
Effective on July 1, 2016 Mississippi reenacted and extended the repeal date of the Debt Management Services Act (hereinafter referred to as the Act). The Act has now been extended to continue until July 1, 2019.
The Act regulates debt management service providers. In specific it outlines: (1) the procedures of licensures; (2) the procedures in providing services; (3) mandatory guidelines for consumer communications; (4) outlines the commissioner’s powers of enforcement; and (5) repercussions of violations of the Act.
In regards to the procedures of licensures the Act states the requirements for attaining a license as a debt management service provider. It outlines requirements for a complete application and the several following steps that must be satisfactorily met in order to attain the license. Once a license has been attained the Act continues dedicating several sections explaining the procedures a provider may engage in with a consumer. In specific, the Act legislates over written reports provided to consumers, notices provided to consumers, maintenance of consumer’s records and transactions as well as the handling of consumer funds.
The Act also explains the powers of the commissioner. Within the explanations and in correlation to the powers of the commissioner the Act expounds explicitly several violations that may result as a consequence of the licensee’s actions. Such violations include false advertisement and broader encompassing language such as “unfair, unconscionable or deceptive practices”. As a consequence of such actions, the Act delineates several repercussions such as the suspension of a license, fines, and even the revocation of a license.
Find a complete reading of the Act here.
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