The National Conference of Commissioners on Uniform State Laws (NCCUSL) issued its final version of the prototype Uniform Debt Management Services Act for adoption by the states. This is the final step in a process that began over six years ago and included input by a number of industry sources including the AICCCA.
The final version of the proposed law covers both Credit Counseling entities offering education and Debt Management Programs and Debt Settlement companies offering to settle consumer debts at a reduced principal amount. If enacted by most or all of the states without changes, this law could benefit credit counseling companies, consumers, creditors, and even debt settlement companies by eliminating the overlapping, redundant, confusing and contradictory patchwork of laws that have been enacted by various states over the past decade.
The law seeks to standardize bonding, insurance, fees, and other requirements. It also provides for restrictions and limits on various activities that credit counseling and debt settlement companies can engage in and offers a number of sound consumer protections. It is our sincere wish that every state adopt this law in the best interests of its citizens.
David C. Jones, Ph.D.
AICCCA President
