FL H0067

Expands the definition of "credit counseling agency" to include debt settlement services and clarifies that compensation is required for these services.

Creates new debt settlement plan requirements including mandatory pre-payment disclosures to debtors about timing, accumulation amounts needed, credit impact risks, and fund withdrawal rights without penalty.

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

Restricts debt settlement service fees until at least one debt is settled and one payment is made, with fees limited to either proportional allocation or up to 30 percent of the amount saved per debt.

Allows credit counseling agencies to hold debtor funds in insured financial institutions for accumulation purposes while requiring separate trust accounts and disbursement within 30 days unless longer accumulation is needed.