CA SB985

Increases the one-time fee limit for education and counseling combined in connection with debt management or debt settlement services from $50 to $100 for exempt nonprofit community service organizations.

Raises the monthly fee limit for debt management plans from 8% of money disbursed or $35 per month (whichever is less) to 15% of money disbursed or $75 per month (whichever is less).

Increases the required surety bond amount from $25,000 to $100,000 for nonprofit community service organizations claiming exemption from prorater licensing requirements.

Specifies that counseling on consumer credit problems and family budgets must be provided via in-person, telephone, and virtual communication as a principal function requirement.

Approved by Governor August 19, 2024, effective immediately as Chapter 178.