FL H1433

Defines "debt management plan" (DMP) and "debt settlement plan" (DSP) as written agreements between credit counseling agencies and debtors for debt reduction services with creditor concessions or settlements.

Requires credit counseling agencies to disclose to debtors before payment: timeframe to achieve results, settlement offer timing and amounts, credit impact and legal risks, and debtor's right to withdraw funds without penalty within 7 business days.

Prohibits credit counseling agencies from misrepresenting material aspects of debt services, including savings amounts, timeframes, accumulation requirements, credit effects, and success rates.

Restricts agencies from collecting fees until they have renegotiated at least one debt, the debtor makes at least one payment, and fees are proportionally allocated or based on percentage of savings achieved.

Allows agencies to require debtors to place funds in insured financial institution accounts for accumulation and payments, provided the debtor owns the funds, earns interest, and the account administrator is independent and unaffiliated with the agency.