2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-709 - Requirements

6-709.
Requirements
A. A licensee at all times shall maintain minimum liquid assets of at least $2, 500 in excess of the licensee's business liabilities and of the licensee's liabilities on account of monies received in the business of a debt management company. The deputy director may determine by general rule what assets are liquid assets within the meaning of this section and may determine by specific ruling or demand that a particular asset is or is not a liquid asset within the meaning of this section.
B. A licensee shall make a written contract between the licensee and a debtor and immediately furnish the debtor with a copy of the completed contract. The licensee shall concurrently furnish the debtor with a list of the creditors,  as of the time of the signing of the contract,  with whom the licensee agrees to manage the debtor's obligations. All contracts shall contain a provision allowing the termination of the contract by either party at any time. Such termination shall be without penalty,  except that the licensee shall retain the retainer fee if the termination is by the debtor. Termination shall only be on a five-day notice to the other party.
C. The basis of fees charged to a debtor by a licensee for assuming the responsibility of debt management shall be agreed on in advance and clearly stated in the contract. The fees charged to a debtor shall not exceed:
1. A retainer fee of $39.
2. Three-quarters of one percent of the total indebtedness or $50,  whichever is less,  may be charged monthly and shall be due and payable at the time such deposited funds are remitted to the creditors. Unusual and necessary " out of pocket"  expense items by the licensee may be charged to the debtor's account if the incurrence of the expense has advance written approval of the debtor and deputy director.
D. The total debt shall be calculated not less often than annually and the charges adjusted based on the new total debt. Any fees charged by the licensee shall not be based on a total debt which includes a mortgage on the residence or a rent payment as a liability or a debt.
E. A licensee shall not be entitled to any fee until the licensee has given notice of the debt management contract to all creditors listed in the application form.
F. A licensee shall make remittances to creditors within seven days after receipt of any funds,  unless the reasonable payment of one or more of the debtor's obligations requires that such funds be held for a longer period so as to accumulate a certain sum.
G. A licensee shall on request furnish the debtor with a written statement of the debtor's account each month or a verbal accounting at any time the debtor may request it during normal business hours.
H. A licensee shall,  if a compromise of a debt is arranged by the licensee with any one or more creditors,  allow the debtor the full benefit of that compromise.
I. A licensee shall maintain a trustee checking account in a bank in this state for the benefit of debtors in which all payments received from the debtors shall be deposited and in which all payments shall remain until disbursed by the licensee in accordance with the terms of the contract.
J. A licensee shall keep and use in the licensee's business books,  accounts and records that will enable the deputy director to determine whether such licensee is complying with this article and with the rules of the department. Each licensee shall preserve such books,  accounts and records for at least three years after making the final entry on any transaction recorded in the books,  accounts or records.
K. If a licensee desires to change the licensee's place of business or the name of the company under which the license is issued,  the licensee shall give written notice of the change within fifteen days to the deputy director and shall submit the license to the deputy director who shall enter an order allowing the change and who shall amend the license accordingly.
L. A licensee shall,  within fifteen days after termination of a debt management company,  a branch office or an agency,  inform the deputy director of the name and address of such company,  branch office or agency and shall surrender the license to the deputy director.
M. A licensee shall annually on or before August 15 file a report with the deputy director giving such relevant information as the deputy director may require concerning the business and operations of each place of business during the preceding year beginning July 1 and ending June 30. The deputy director may assess a penalty of $5 for each day the licensee fails to file such report.