Montana Code 30-14-2013. Prohibited practices
30-14-2013. Prohibited practices. (1) A credit counseling service may not:
Terms Used In Montana Code 30-14-2013
- Consumer: means an individual who, singly or jointly with another individual, owes money to one or more creditors for personal, family, or household purposes. See Montana Code 30-14-2003
- Credit counseling service: means a person that provides or offers to provide debt management plan services to consumers for consideration. See Montana Code 30-14-2003
- Debt management plan: means a written agreement under which a credit counseling service is to receive money from a consumer for the purpose of distributing that money to one or more creditors of the consumer as full or partial payment of the consumer's obligation to the creditor or creditors. See Montana Code 30-14-2003
- Department: means the department of justice provided for in 2-15-2001. See Montana Code 30-14-2003
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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: means an individual, sole proprietorship, firm, partnership, corporation, limited liability partnership or company, or other entity and includes a nonprofit organization exempt from taxation under 501(c)(3) of the Internal Revenue Code, 26 U. See Montana Code 30-14-2003
- Property: means real and personal property. See Montana Code 1-1-205
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(a)purchase any debt or obligation of a consumer;
(b)lend money or provide credit to a consumer;
(c)obtain a mortgage or other security interest in any property of a consumer;
(d)operate as a collection agency;
(e)structure a debt management plan in a way that at the debt management plan’s conclusion any debts of the consumer that are subject to the debt management plan are not fully amortized;
(f)charge for or provide credit insurance;
(g)cause or attempt to cause a consumer to waive or forego any right or benefit that the consumer has under the provisions of this part; or
(h)operate in this state without a license.
(2)(a) A credit counseling service may not advertise its services in any manner in this state without first being licensed by the department.
(b)A credit counseling service or any person on a credit counseling service’s behalf may not misrepresent any material fact or make a false promise intended to induce a consumer into entering a debt management plan.