Provides for budget planning and debt settlement services; requires debt settlement companies to obtain a license.

New York bill A01427 amends the general business law and banking law to regulate budget planning and debt settlement services. It requires debt settlement companies to obtain a license and prohibits them from engaging in certain activities. Debt settlement companies must provide clear disclosures to debtors, including the potential harm to credit history and the lack of creditor acceptance for debt reductions. The bill also mandates that debt settlement companies maintain debtor settlement accounts and submit monthly accounting statements.

Provides for budget planning and debt settlement services; requires debt settlement companies to obtain a license.

New York bill A01427 amends the general business law and banking law to regulate budget planning and debt settlement services. It requires debt settlement companies to obtain a license and prohibits them from engaging in certain activities. Debt settlement companies must provide clear disclosures to debtors, including the potential harm to credit history and the lack of creditor acceptance for debt reductions. The bill also mandates that debt settlement companies maintain debtor settlement accounts and submit monthly accounting statements.