New Hampshire Amends Provisions Regarding Debt Adjustment Services
New Hampshire amended its provisions relating to debt adjustment services. These provisions are effective on January 1, 2017.
Chapter 399-D Debt Adjustment Services
Definitions
Included in these amendments are definitions for several terms.
- a) Providing debt management advice or counseling to consumers for direct or indirect compensation;
- b) Creating debt management plans for consumers for direct or indirect compensation;
- c) Negotiating with one or more creditors on behalf of a consumer for direct or indirect compensation; or
- d) Receiving, for a fee or compensation and as agent of a debtor, money or evidences thereof for the purpose of distributing such money or evidences thereof among creditors in full or partial payment of obligations of the debtor.
- e) A person otherwise engaging in the debt adjustment business including but not limited to acting upon outstanding debt adjustment contracts is providing debt adjustment within the intent of this chapter.
- f) Any person that serves as an intermediary between a consumer and one or more creditors of the consumer for the purpose of obtaining concessions.
Also included in these definitions are applicant, branch office, commissioner, compensation, concessions, control, creditor, debt adjuster, debt adjustment contract, debt management plan, debt repayment plan, debt settlement plan, debtor, department, direct owner, fair share, fiduciary, financial institution, financial services or financial services-related, indebtedness, indirect owner, licensee, person, principal, principal office, publicly traded, and senior manager.
License Required
- I. Any person that, in its own name or on behalf of other persons, engages in the business of debt adjustment in this state or with persons located in this state shall be required to obtain a license from the banking department. Persons subject to this chapter shall be responsible for the supervision of their employees, agents, and branch offices.
- II. The fact that a person is licensed or registered in the state of New Hampshire under this chapter does not constitute a finding that the commissioner has passed in any way upon the merits or qualifications of such person or that the commissioner has recommended or given approval to any person. It is unlawful to make, or cause to be made, to any prospective purchaser, customer, or client any representation inconsistent with the provisions of this paragraph.
- III. If a person, or a person’s members, officers, directors, agents, and employees, violates paragraph I of this section, the debt adjustment contract shall be void and the person shall have no right to collect, receive, or retain any interest or charges whatsoever whether paid or received directly or indirectly. Any such direct or indirect compensation received by the person shall be refunded to the consumer.
- IV. Any person not exempt under RSA 399-D:4 that, in its own name or on behalf of another person, engages in a mortgage loan modification activity as a debt adjustment service in this state or with persons located in this state, shall be required to obtain a mortgage license from the banking department pursuant to RSA 397-A.
Exemptions
The provisions of this chapter shall not apply to the following:
- I. Any attorney admitted to the practice of law in this state, when engaged in such practice.
- II. Any bank, fiduciary, or financing or lending institution authorized to transact business in this state, which performs debt adjustment in the regular course of its principal business.
- III. Any title insurance or abstract company authorized to transact business in this state, while doing an escrow business.
- IV. Any person acting pursuant to any law of this state or of the United States or acting under the order of a court.
- V. Any employee of a licensee when acting in the regular course of employment.
- VI. Any person engaged in effecting a mortgage loan modification if such person is duly licensed as a mortgage banker, mortgage broker, or mortgage originator under RSA 397-A or is registered as a mortgage servicer or is licensed as a mortgage originator under RSA 397-B and such person conducts no other activity that would require a license under this chapter.
- VII. Other persons not within the intent of this chapter as the commissioner may designate by rule or order.
Application and Fees
To be considered for licensing ach person must complete and file with the department one verified application prescribed by the commissioner by rule.
License Grant and Renewal
Upon the applicant’s filing of the complete application, and payment of the required fee, the commissioner shall have, in accordance with RSA 541-A:29, up to 120 days to investigate and determine whether the applicant’s financial resources, experience, personnel, and record of past or proposed conduct warrant the public’s confidence and the issuance of a license.
License Denial or Abandonment; Appeal
If the commissioner determines that the applicant fails to meet the requirements of this chapter, the commissioner shall immediately, in writing, notify the applicant of that determination. Applicants may appeal a license denial in accordance with RSA 541-A and rules of the
commissioner adopted thereunder.
Updates also include license surrender, continuing obligation to update, reporting and filing requirements, record keeping requirements, consumer inquiries, examinations and investigations, prohibitions, and fraud and dishonesty.
View the full text at http://www.gencourt.state.nh.us/rsa/html/XXXVI/399-D/399-D-mrg.htm
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