Unofficial Draft Copy
67th Legislature LC 2537
1 _____________ BILL NO. _____________
2 INTRODUCED BY _________________________________________________
(Primary Sponsor)
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING COLLECTION AGENCY LAWS;
5 LIMITING THE AMOUNT OF MONEY A COLLECTION AGENCY MAY COLLECT ON A DEBT; LIMITING THE
6 AMOUNT OF TIME A COLLECTION AGENCY MAY COLLECT ON A DEBT; PROVIDING AN
7 APPROPRIATION; AMENDING SECTION 30-14-2013, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE
8 DATE AND AN APPLICABILITY DATE.”
9
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
11
12 Section 1. Section 30-14-2013, MCA, is amended to read:
13 "30-14-2013. Prohibited practices. (1) A credit counseling service may not:
14 (a) purchase any debt or obligation of a consumer;
15 (b) lend money or provide credit to a consumer;
16 (c) obtain a mortgage or other security interest in any property of a consumer;
17 (d) operate as a collection agency;
18 (e) structure a debt management plan in a way that at the debt management plan's conclusion any
19 debts of the consumer that are subject to the debt management plan are not fully amortized;
20 (f) charge for or provide credit insurance;
21 (g) cause or attempt to cause a consumer to waive or forego any right or benefit that the consumer
22 has under the provisions of this part; or
23 (h) operate in this state without a license.
24 (2) (a) A credit counseling service may not advertise its services in any manner in this state without
25 first being licensed by the department.
26 (b) A credit counseling service or any person on a credit counseling service's behalf may not
27 misrepresent any material fact or make a false promise intended to induce a consumer into entering a debt
28 management plan.
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Unofficial Draft Copy
67th Legislature LC 2537
1 (3) (a) A collection agency may not collect on a debt in excess of:
2 (i) collecting 150% of the original value of the debt; or
3 (ii) a period of 10 years.
4 (b) Transferring a debt to another collection agency or another person or entity does not reset the
5 limits established in subsection (3)(a)."
6
7 NEW SECTION. Section 2. Appropriation. There is appropriated $1 from the general fund to the
8 office of consumer protection for the biennium beginning July 1, 2021, for the purposes of [section 1(3)].
9
10 NEW SECTION. Section 3. Effective date. [This act] is effective on passage and approval.
11
12 NEW SECTION. Section 4. Applicability. [This act] applies to debts transferred to a debt collection
13 agency on or after [the effective date of this act].
14 - END -
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Statutes affected:
Introduced: 30-14-2013