Hawaii Revised Statutes 446-2 – Debt adjusting prohibited; penalty; contracts void
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Terms Used In Hawaii Revised Statutes 446-2
- Contract: A legal written agreement that becomes binding when signed.
- Debt adjuster: means a person who for a profit engages in the business of acting as an intermediary between a debtor and the debtor's creditors for the purpose of settling, compromising, or in any way altering the terms of payment of any debts of the debtor and who:
Receives money, property, or other thing of value from the debtor, or on behalf of the debtor, for distribution among the creditors of the debtor; or
Otherwise arranges for payment to, or distribution among, the creditors of the debtor. See Hawaii Revised Statutes 446-1
- Debtor: means an individual and includes two or more individuals who are jointly and severally or jointly or severally indebted. See Hawaii Revised Statutes 446-1
- Person: means an individual, partnership, corporation, firm, association, or any other legal entity. See Hawaii Revised Statutes 446-1
Any person who acts or offers to act as a debt adjuster in this State shall be fined not more than $500 or imprisoned not more than six months, or both. Any contract for debt adjusting entered into with a person engaged in the business for a profit shall be void and unenforceable and the debtor may recover from the debt adjuster all sums or things deposited with the debt adjuster and not disbursed to the debtor’s creditors.