Vermont Statutes Title 8 Sec. 2759
Terms Used In Vermont Statutes Title 8 Sec. 2759
- Contract: A legal written agreement that becomes binding when signed.
- debt adjustment: means making an agreement with a debtor whereby the debt adjuster agrees to distribute, supervise, coordinate, negotiate, or control the distribution of money or evidences thereof among one or more of the debtor's creditors in full or partial payment of obligations of the debtor and includes services as an intermediary between a debtor and one or more of the debtor's creditors for the purpose of obtaining concessions. See
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
§ 2759. Contract with debtor
(a) Prior to taking any fee or receiving any compensation, either directly or indirectly, or payment of any sum of money by the debtor, each licensee shall make a written contract between the licensee and the debtor, which contract shall be in such form and shall contain such conditions as the Commissioner shall have approved in writing prior to the use of such contract, and the licensee shall immediately furnish the debtor with a true copy of the contract.
(b) In addition to such other items as the Commissioner may require, the contract shall:
(1) fully disclose all services to be provided;
(2) fully disclose all fees to be charged to the debtor;
(3) disclose that debt adjustment plans are not suitable for all debtors;
(4) if applicable, disclose that creditors may compensate the licensee;
(5) if applicable, disclose that secured debt is not covered by the contract; and
(6) disclose a list of debts covered by the contract and the interest rate of those debts at the time. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 2003, No. 81 (Adj. Sess.), § 1; 2009, No. 137 (Adj. Sess.), § 3.)