Source: http://jonbclarke.com/an-overview-of-the-uniform-debt-management-services-act-udmsa-part-2/
Timestamp: 2017-09-22 18:51:29
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An Overview of the Uniform Debt-Management Services Act (UDMSA) (Part 2) - Castle Rock Bankruptcy Attorney - Jon B. Clarke, P.C.
Jon B. Clarke, P.C. > Blog > Bankruptcy > An Overview of the Uniform Debt-Management Services Act (UDMSA) (Part 2)
An Overview of the Uniform Debt-Management Services Act (UDMSA) (Part 2)
According to the UDMSA, debt management agencies that violate the terms of this Act can face serious penalties, including fines of up to $10,000.
As a continuation of An Overview of the Uniform Debt-Management Services Act (UDMSA) (Part 1), here is some more important information regarding how the UDMSA affects the way that debt management agencies and services are legally allowed to operate within Colorado. While Part 1 of this discussion focused on what debt management agencies are legally required to do when it comes to the services that they provide to their clients, here in Part 2, we will take a closer look at what these agencies are legally NOT allowed to do when it comes to dealing with clients.
What Debt Management Agencies Can NOT Do, According to the UDMSA
When it comes to what debt counseling companies are not allowed to do, the UDMSA forbids these agencies from:
Misappropriating money in a trust account that has been set aside specifically to pay off creditors
Settling a debtor’s debt for more than 50 percent of the total debt without first obtaining the consent of the debtor
Enticing debtors to enter into contracts with them by offering special premiums or “gifts”
Alleging that a debt has been settled without actually having settled the debt and without proof of the debt settlement from the creditor
Should debt management agencies violate any aspect of the UDMSA, they can face up to $10,000 in fines, and they may also be subject to a civil lawsuit filed on behalf of the debtors (i.e., their clients) that have been wronged. While state administrators have up to four years to levy fines against agencies that have violated the UDMSA, private debtors will only have two years within which to file lawsuits against these businesses.
If you are facing foreclosure, are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. before entering into any contract with a debt management agency. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.
Categories: Bankruptcy, Blog, Debt Relief, Denver Debt Counseling Services