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SB 2000

DEBT ASSIST-REPORTING

104th Regular Session Introduced by Laura Fine

SB 2000 - DEBT ASSIST-REPORTING SummarySB 2000, the "DEBT ASSIST-REPORTING" bill, proposes new requirements for companies that provide debt assistance services to consumers. The ma

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 2000

SB 2000 - DEBT ASSIST-REPORTING

Summary

SB 2000, the "DEBT ASSIST-REPORTING" bill, proposes new requirements for companies that provide debt assistance services to consumers. The main goals of this legislation are to increase transparency and accountability in the debt assistance industry, and to better protect consumers from deceptive or unfair practices.

Key Provisions

  1. Mandatory Reporting: The bill would require debt assistance companies to submit annual reports to the state Attorney General's office. These reports must include detailed information on the company's activities, including:

    • Total number of clients served
    • Total amount of debt enrolled
    • Fees charged to clients
    • Percentage of clients who successfully completed the company's program
    • Percentage of clients who dropped out or were terminated from the program

  2. Prohibited Practices: The legislation bans certain practices by debt assistance companies, such as:

    • Charging upfront fees before providing any debt assistance services
    • Making false or misleading claims about the company's services or success rates
    • Requiring clients to make payments directly to the company rather than to creditors

  3. Consumer Protections: SB 2000 would grant consumers new rights, including:

    • The ability to cancel a debt assistance contract within 5 business days with no penalty
    • A requirement that companies disclose all fees and costs in writing before a consumer enrolls

Impact

This bill is aimed at regulating the debt assistance industry and protecting consumers who are seeking help with managing or reducing their debts. By mandating reporting and prohibiting certain practices, the legislation seeks to bring more transparency and accountability to the sector.

The new consumer protections are also intended to give individuals more control and information when signing up for debt assistance services. Proponents argue this will help prevent consumers from being taken advantage of by unscrupulous companies.

However, some industry groups have raised concerns that the additional requirements could increase costs for legitimate debt assistance providers, potentially making their services less accessible or affordable for consumers.

Timeline

SB 2000 was introduced in the state legislature on March 6, 2025 and has been referred to the Assignments committee for further consideration. If passed, the new reporting and consumer protection requirements would take effect 6 months after the bill is signed into law.

Compiled from official sources — confirm details with the bill’s official record.

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