ND HB1038

Creates chapter 13-11 of North Dakota Century Code to regulate debt-settlement providers, requiring licensure through the Department of Financial Institutions with a $400 application fee, $400 annual license fee, and $50,000 surety bond.

Prohibits upfront, enrollment, setup, and maintenance fees; limits settlement fees to maximum 30% of savings achieved through debt negotiation.

Requires debt-settlement providers to obtain written contracts, conduct financial analysis, maintain consumer trust accounts, provide detailed disclosures including "Consumer Notice and Rights Form" with specific warnings about credit damage and creditor collection risks.

Establishes extensive prohibitions including misappropriating consumer funds, charging unauthorized fees, making false representations, and engaging in deceptive practices; violations constitute Class C felony with civil penalties up to $5,000 per violation.

Repeals chapter 13-06 (prior debt adjuster regulations) and allows consumers to cancel contracts anytime and recover unearned fees plus funds held in settlement accounts except amounts paid to creditors.