MO SB401

Redefines "debt adjuster" to mean any person who provides debt relief services for consideration, expanding beyond the previous definition limited to those who collect and distribute funds to creditors.

Establishes new disclosure requirements for debt adjusters, including timeline for settlement offers, amount of debt to accumulate before settlement attempts, and warnings about credit score impacts and potential lawsuits.

Prohibits debt adjusters from charging fees until at least one debt is renegotiated and the debtor makes at least one payment, with fees capped at $50 for setup and the greater of $35/month or 8% of monthly distributions under a debt management plan.

Requires debt adjusters to post a $100,000 blanket bond with the state of Missouri, with funds available to debtors damaged by the adjuster's breach or mishandling of debtor funds.

Permits individuals and organizations to administer debt management and settlement plans free of charge, and exempts attorneys, employees, court-appointed representatives, and creditors acting without compensation from debt adjuster regulations.