Kentucky Statutes 380.060 – Person engaged in debt adjusting to contract with debtor — Disclosure and notice to debtor — Debtor’s right to cancel
Current as of: 2024 | Check for updates
|
Other versions
(1) A person engaged in debt adjusting shall contract in writing with the debtor and obtain the debtor’s signature on the contract which shall designate the date on which the debtor actually signs the contract as the date of the transaction and fully disclose the exact nature of the debt-adjusting services and the total amount and terms of compensation.
(2) Any debtor entering into a contract to provide debt-adjusting services shall have a right to cancel the contract until midnight of the fourteenth day after the day on which the debtor signs a contract offer to enter into a contract for debt-adjusting services, except as provided in subsection (7) of this section.
(3) The following notice, printed in at least twelve (12) point boldface type and completed with the name and address of the debt adjuster, shall appear on the contract under the conspicuous caption “DEBTOR’S RIGHT TO CANCEL” and shall read as follows:
NOTICE OF CANCELLATION
………………………………………………. (enter date of transaction)
You may cancel this contract or offer without penalty or monetary obligation, within fourteen (14) days from the above date. To cancel this transaction, you may use any of the following methods: mail or otherwise deliver a signed and dated copy of this cancellation notice, or any other written notice of cancellation which you sign and date to (enter physical address of debt adjuster) or e-mail a notice of cancellation to (enter name of debt adjuster) at (enter e-mail address of debt adjuster) not later than midnight of (enter date fourteen (14) days after transaction date).
I hereby cancel this transaction.
……………………………………………….. (Date)
……………………………………………….. (Debtor’s Signature)
(4) Cancellation occurs when the debtor gives written notice of cancellation to the debt adjuster at the physical or e-mail address stated in the contract or offer to perform services.
(5) Notice of cancellation, if given by mail, is given when it is deposited in a mailbox properly addressed and postage prepaid and, if given by e-mail, when the debtor sends the e-mail.
(6) Notice of cancellation given by the debtor is sufficient if it indicates in writing the intention of the debtor not to be bound by the contract or offer of services.
(7) Until the debt adjuster has complied with the disclosure notice required by subsection (3) of this section, the debtor may cancel the contract or offer of services by notifying the debt adjuster of his or her intention to cancel.
Effective: July 15, 2010
History: Created 2010 Ky. Acts ch. 86, sec. 2, effective July 15, 2010.
(2) Any debtor entering into a contract to provide debt-adjusting services shall have a right to cancel the contract until midnight of the fourteenth day after the day on which the debtor signs a contract offer to enter into a contract for debt-adjusting services, except as provided in subsection (7) of this section.
Terms Used In Kentucky Statutes 380.060
- Contract: A legal written agreement that becomes binding when signed.
- Debt adjuster: means a person engaged in the business of debt adjusting. See Kentucky Statutes 380.010
- Debt adjusting: means doing business in this state in debt adjusting, budget counseling, debt management, debt modification or settlement, foreclosure assistance, or debt pooling service, or holding oneself out as acting or offering or attempting to act as an intermediary between a debtor and his or her creditors for a fee, contribution, or other consideration, or by words of similar import, as providing services to debtors in the management, settlement, modification, or adjustment of their debts, to do any of the following:
(a) Effect the adjustment, compromise, settlement, modification, or discharge of any account, note or other indebtedness of the debtor. See Kentucky Statutes 380.010 - Debtor: means an individual who resides in Kentucky and is indebted to a creditor or creditors, including two (2) or more individuals who are jointly and severally, or jointly or severally, indebted to a creditor or creditors. See Kentucky Statutes 380.010
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes , but is not limited to, individuals, partnerships, associations, corporations, limited liability companies, trusts, and other legal entities. See Kentucky Statutes 380.010
(3) The following notice, printed in at least twelve (12) point boldface type and completed with the name and address of the debt adjuster, shall appear on the contract under the conspicuous caption “DEBTOR’S RIGHT TO CANCEL” and shall read as follows:
NOTICE OF CANCELLATION
………………………………………………. (enter date of transaction)
You may cancel this contract or offer without penalty or monetary obligation, within fourteen (14) days from the above date. To cancel this transaction, you may use any of the following methods: mail or otherwise deliver a signed and dated copy of this cancellation notice, or any other written notice of cancellation which you sign and date to (enter physical address of debt adjuster) or e-mail a notice of cancellation to (enter name of debt adjuster) at (enter e-mail address of debt adjuster) not later than midnight of (enter date fourteen (14) days after transaction date).
I hereby cancel this transaction.
……………………………………………….. (Date)
……………………………………………….. (Debtor’s Signature)
(4) Cancellation occurs when the debtor gives written notice of cancellation to the debt adjuster at the physical or e-mail address stated in the contract or offer to perform services.
(5) Notice of cancellation, if given by mail, is given when it is deposited in a mailbox properly addressed and postage prepaid and, if given by e-mail, when the debtor sends the e-mail.
(6) Notice of cancellation given by the debtor is sufficient if it indicates in writing the intention of the debtor not to be bound by the contract or offer of services.
(7) Until the debt adjuster has complied with the disclosure notice required by subsection (3) of this section, the debtor may cancel the contract or offer of services by notifying the debt adjuster of his or her intention to cancel.
Effective: July 15, 2010
History: Created 2010 Ky. Acts ch. 86, sec. 2, effective July 15, 2010.