Senate Bill 132 Summary

• Amends credit services organization disclosure requirements to align with federal Fair Credit Reporting Act changes regarding when consumers are entitled to free consumer reports.

• Creates new Article 32-30.1 establishing comprehensive regulations on mortgage rescue fraud, including prohibitions on foreclosure consultants and foreclosure purchasers engaging in deceptive practices with homeowners facing foreclosure.

• Allows homeowners to rescind contracts with foreclosure consultants within seven business days and foreclosure reconveyance agreements within seven business days of property transfer, with ability to recover payments.

• Combines two separate presuit notice requirements for residential foreclosure proceedings into one section and requires notices be sent by certified mail at least 30 days before foreclosure filing.

• Repeals existing mortgage rescue fraud statute (IC 24-5.5) and makes conforming changes to cross-references; effective July 1, 2010.