SB 938 - Debt Settlement Services Act

• Creates licensing requirements for debt settlement advisors in Florida, requiring persons providing debt settlement services to clients in the state to obtain a license from the Office of Financial Regulation with a non-refundable fee not to exceed $350 and proof of insurance (minimum amount by rule) or surety bond ($10,000-$50,000).

• Mandates background screening including state and federal criminal history checks through fingerprinting, with costs borne by applicants; requires licensees to disclose ownership interests of 10% or more and notify the office of any changes within 30 days.

• Establishes client protections including requirements that advisors provide financial analysis, itemized service charges, and written disclosures before signing agreements; clients may cancel within 3 business days (or 30 days if agreement non-compliant) with full refund of fees paid.

• Limits debt settlement advisor fees to maximum 20% of the principal debt amount and prohibits various practices including holding power of attorney for settlements exceeding 50% without client consent, purchasing client debts, receiving postdated checks, or providing misleading advertisements.

• Authorizes the Office of Financial Regulation to investigate, examine records, issue subpoenas, impose civil penalties up to $1,000 per violation, suspend/revoke licenses, and permits private enforcement actions with attorney's fees; establishes statute of limitations of 4 years for enforcement actions and 2 years for private claims.