FL S0336

Establishes separate regulatory framework for debt settlement services, distinct from debt management services, requiring all debt settlement to occur through written debt settlement plans.

Requires debt settlement providers to disclose in writing before payment: timeline for results, amount debtor must accumulate before settlement offers, adverse credit effects, and debtor's right to withdraw funds within 7 business days without penalty.

Prohibits debt settlement providers from charging fees until at least one debt is settled and debtor makes a payment; limits fees to maximum of 30 percent of the amount saved, calculated as difference between original debt and final payment.

Extends auditing and insurance requirements to debt settlement providers, including annual certified public accountant audits and employee dishonesty insurance of at least $100,000 or 10 percent of monthly average deposits.

Allows debt settlement providers to hold accumulated funds in insured accounts if administered by independent third parties, but debtors may withdraw all funds at any time without penalty.