CT SB00362

Repeals and replaces Section 36a-671b of the general statutes, effective October 1, 2012, to regulate debt negotiators' fees and service contracts

Requires debt negotiators to provide written contracts detailing all services, costs, and good faith estimates of results, with a mandatory three-day cancellation period

Prohibits debt negotiators from charging fees until they have renegotiated an enrolled debt, the debtor has made at least one payment toward settlement, and the negotiated debt has been altered

Allows fees to be calculated either as a proportional relationship to the total fee based on individual debt amounts, or as a consistent percentage of the amount saved across all enrolled debts

Makes any non-compliant contract voidable by the consumer