DE HB72

Establishes definition of "certified debt specialist" for individuals certified to provide debt settlement services where creditors reduce principal amounts, and defines "lead generator" as persons referring customers to debt management providers.

Requires debt management providers to maintain $250,000 insurance coverage (or higher based on trust account balances) against dishonesty, fraud, and theft, with specific policy requirements including $5,000 deductible maximum and 60-day cancellation notice to Attorney General.

Prohibits advance fees for debt settlement services; allows only consultation fees up to $50 initially, then monthly service fees up to $50 for debt reduction plans, and settlement fees capped at 30% of debt reduction achieved for debt settlement plans.

Strengthens trust account regulations requiring independent administration, prohibiting provider compensation from account administrators, and ensuring all interest accrues to individuals; mandates return of funds within seven business days upon agreement termination.

Allows individuals to terminate agreements at any time without penalty; requires providers to obtain individual assent after creditor agreement to settlement terms; adds disclosure requirement that not all creditors will agree to debt reduction; becomes effective six months after enactment.