BR 855 2010

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BR 855 2010 was prefiled on December 18, 2009 by Representative Robert R. Damron for the 2010 General Assembly.

It is an act relating to debt adjusting.

BR proposes to Amend KRS 380.010 to define "debt adjuster," "debtor," "personal information," and "additional interested party," and amend definition of "debt adjusting"; create new sections of KRS Chapter 380 to set forth requirements regarding debt-adjusting contracts, including the requirement that contracts be in writing and signed and dated by the debtor; provide a debtor's right to cancel and set forth provisions relating to cancellation; prohibit the waiver of a debtor's rights; provide for a private right of action for persons entering into debt-adjusting transactions who have suffered loss of money or property, including the right to punitive damages and attorney's fees and costs; require debt adjusters to adhere to stated information security standards; prohibit the sale of debtor's personal information except under permitted circumstances; amend KRS 380.040 to prohibit a debt adjuster from accepting a fee, contribution, or other consideration in advance of complete performance of promised services, to require debt adjuster's to maintain insurance for violations KRS Chapter 380, and to require debt adjusters to maintain a bond or irrevocable letter of credit in the amount of $25,000 in favor of the Attorney General for the benefit of the Commonwealth or any person suffering injury or loss by reason of a violationof KRS Chapter 380; amend KRS 380.990 to allow for imposition of a $5,000 civil penalty for violation of KRS 380.040 and stipulate that violations of KRS Chapter 380 are unfair, false, misleading, or deceptive trade practices, including the ramifications thereof; amend KRS 380.030 to clarify that attorneys admitted to the practice of law in this state by the Kentucky Supreme Court are not to be considered debt adjusters. [1]

References

  1. BR 855 on lrc.ky.gov