In this subchapter:
(1) “Advertising” means information about a provider or about the provider’s debt management services, communicated in writing or orally to an individual consumer or the public by telephone, television, Internet, radio, or other electronic medium, or by written material sent by mail, posted publicly, or posted at the provider’s business location.
(2) “Certified counselor” means an individual who:
(A) is certified as a debt management counselor by an independent accreditation organization; or
(B) if the individual has been employed for less than 12 months, is in the process of being certified as a debt management counselor by an independent accreditation organization.
(3) “Commissioner” means the consumer credit commissioner.
(3-a) “Concession” means assent to repayment of a debt on terms more favorable to a consumer than the terms of the agreement under which the consumer became indebted to the creditor.
(4) “Consumer” means an individual who resides in this state and seeks a debt management service or enters a debt management service agreement.
(5) “Creditor” means a person to whom a person owes money.
(6) “Debt management service” means a service in which a provider obtains or seeks to obtain a concession from one or more creditors on behalf of a consumer.
(7) “Debt management service agreement” means a written agreement between a provider and a consumer for the performance of a debt management service.
(8) “Finance commission” means the Finance Commission of Texas.
(9) “Person” means an individual, partnership, corporation, limited liability company, association, or organization.
(9-a) “Principal amount of the debt” means the amount of a debt owed by a consumer at the time the consumer enters into a debt management service agreement.
(10) “Provider” means a person that acts as an intermediary between a consumer and one or more creditors and that provides or offers to provide a debt management service to a consumer in this state.
(11) “Secured debt” means a debt for which a creditor has a mortgage, lien, or security interest in collateral.
(11-a) “Settlement fee” means a charge that is imposed on or paid by a consumer in connection with a debt management service agreement after a creditor agrees to accept in full satisfaction of a debt an amount that is less than the principal amount of the debt.
(12) “Trust account” means an account that is:
(A) established in a federally insured financial institution;
(B) separate from any account of the debt management service provider;
(C) designated as a “trust account” or other appropriate designation indicating that the money in the account is not money of the provider or its officers, employees, or agents;
(D) unavailable to creditors of the provider; and
(E) used exclusively to hold money paid by consumers to the provider for disbursement to creditors of the consumers and to the provider for the disbursement of fees and contributions earned and agreed to in advance.
(13) “Unsecured debt” means a debt for which a creditor does not have collateral.