reglab/statecodes huggingface dataset:
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2403A. Exempt agreements and persons.

§ 2403A. Exempt agreements and persons.
(a) This chapter does not apply to an agreement with an individual who the provider has no reason to know resides in this State at the time of the agreement.
(b) This chapter does not apply to a provider to the extent that the provider:
(1) Provides or agrees to provide debt-management, educational, or counseling services to an individual who the provider has no reason to know resides in this State at the time the provider agrees to provide the services; or
(2) Receives no compensation for debt-management services from or on behalf of the individuals to whom it provides the services or from their creditors.
(c) This chapter does not apply to the following persons or their employees when the person or the employee is engaged in the regular course of the person's business or profession:
(1) A judicial officer, a person acting under an order of a court or an administrative agency, or an assignee for the benefit of creditors;
(2) A bank;
(3) An affiliate, as defined in § 2402A(1)(B)(i) of this title, of a bank if the affiliate is regulated by a federal or state banking regulatory authority; or
(4) A title insurer, escrow company, or other person that provides bill-paying services if the provision of debt-management services is incidental to the bill-paying services.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2404A. License required.

§ 2404A. License required.
(a) Except as otherwise provided in subsection (b) of this section, a provider may not provide debt-management services to an individual who it reasonably should know resides in this State at the time it agrees to provide the services, unless the provider is licensed under this chapter.
(b) If a provider is licensed under this chapter, subsection (a) of this section does not apply to an employee or agent of the provider.
(c) The Attorney General shall maintain and publicize a list of the names of all licensed providers.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2405A. Application for license — Form, fee, and accompanying documents.

§ 2405A. Application for license — Form, fee, and accompanying documents.
(a) An application for license as a provider must be in a form prescribed by the Attorney General.
(b) An application for a license as a provider must be accompanied by:
(1) A nonrefundable fee of $2,000, which shall be deposited in the State Treasury to the credit of the State Consumer Protection Fund created under § 2527 of this title;
(2) The bond required by § 2413A of this title;
(3) Identification of all trust accounts required by § 2422A of this title, an irrevocable consent authorizing the Attorney General to review and examine the trust accounts, and the overdraft notification agreement required by § 2422A of this title;
(4) Evidence of insurance in the amount of $250,000:
(A) Against the risks of dishonesty, fraud, theft, and other misconduct on the part of the applicant or a director, employee, or agent of the applicant;
(B) Issued by an insurance company authorized to do business in this State and rated at least A by a nationally recognized rating organization;
(C) With no greater than a $5,000 deductible; and
(D) Naming the Attorney General as an additional interested party to receive notice upon cancellation of the policy.
(E) [Repealed.]
75 Del. Laws, c. 430, §  1;  76 Del. Laws, c. 146, §§  3, 4, 6;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2407A. Application for license — Obligation to update information.

§ 2407A. Application for license — Obligation to update information.
An applicant or licensed provider shall notify the Attorney General within 10 days after a change in the information specified in § 2405A or § 2406A of this title.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2408A. Application for license — Public information.

§ 2408A. Application for license — Public information.
Except for the information required by § 2406A(8), (15), and (18) of this title and the addresses required by § 2406A(5) of this title, the Attorney General shall make the information in an application for a provider license available to the public.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2409A. License — Issuance or denial.

§ 2409A. License — Issuance or denial.
(a) Except as otherwise provided in subsections (b) and (c) of this section, the Attorney General shall issue a provider license to a person who complies with §§ 2405A and 2406A of this title.
(b) The Attorney General may deny a license if:
(1) The application contains information that is materially erroneous or incomplete;
(2) An officer, director, or owner of the applicant has been convicted of a crime, or suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws;
(3) The applicant or any of its officers, directors, or owners has defaulted in the payment of money collected for others; or
(4) The Attorney General finds that the financial responsibility, experience, character, or general fitness of the applicant or its owners, directors, employees, or agents does not warrant belief that the business will be operated in compliance with this chapter.
(c) The Attorney General shall deny a license if:
(1) The application is not accompanied by the fee established pursuant to this chapter; or
(2) With respect to an applicant that has organized as a not-for-profit entity or has obtained tax-exempt status under the Federal Internal Revenue Code, 26 U.S.C. § 501 as amended, the applicant's board of directors is not independent of the applicant's employees and agents.
(d) Subject to adjustment of the dollar amount pursuant to § 2432A(f) of this title, a board of directors is not independent for purposes of subsection (c) of this section if more than 1/4 of its members:
(1) Are affiliates of the applicant, as defined in § 2402A(1)(A) or (1)(B)(i), (1)(B)(ii), (1)(B)(iv), (1)(B)(v), (1)(B)(vi), or (1)(B)(vii) of this title; or
(2) After the date 10 years before first becoming a director of the applicant, were employed by or directors of a person that received from the applicant more than $25,000 in either the current year or the preceding year.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2410A. License — Timing.

§ 2410A. License — Timing.
(a) The Attorney General shall approve or make a preliminary determination to deny an initial license as a provider within 120 days from the date that the Attorney General determines that the application as filed is complete. In connection with a request pursuant to § 2406A(20) of this title for additional information, the Attorney General may extend the 120-day period for not more than 60 days. Within 7 days after making a preliminary determination to deny an application, the Attorney General, in a record, shall inform the applicant of the reasons for the proposed denial.
(b) If the Attorney General makes a preliminary determination to deny an application for an initial license as a provider, the applicant may file a request for a hearing with the Attorney General pursuant to subchapter IV of the Delaware Administrative Procedures Act, Chapter 101 of Title 29. The Attorney General's preliminary determination may become a final decision if such a request is not timely filed.
(c) Subject to §§ 2411A(d) and 2434A of this title, a provider license is valid for 1 year after the date of issuance.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2412A. License in another state.

§ 2412A. License in another state.
If a provider holds a license or certificate of registration in another state authorizing it to provide debt-management services, and the Attorney General has approved the application forms of that state for use under this chapter, the provider may submit a copy of that license or certificate and the application for it in lieu of an application in the form prescribed by § 2405A(a), § 2406A, or § 2411A(b) of this title.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2414A. Bond required — Substitute.

§ 2414A. Bond required — Substitute.
(a) In lieu of requiring the filing of a surety bond, the Attorney General may, at the Attorney General's discretion, accept from a licensed provider an irrevocable letter of credit. Such irrevocable letters of credit shall be provided by an insured depository institution (as defined in the Federal Deposit Insurance Act at 12 U.S.C. § 1813(c)) acceptable to the Attorney General, in a form satisfactory to the Attorney General in the principal sum to be determined by the Attorney General, except that the irrevocable letter of credit amount shall not be less than $50,000. In determining the amount of the irrevocable letter of credit required for a licensed provider, the Attorney General shall consider, among other things:
(1) The dollar value of the licensed provider's Delaware business;
(2) The dollar value of all trust accounts; and
(3) Such other and further criteria as the Attorney General may deem necessary and appropriate.
(b) No irrevocable letter of credit shall be accepted unless the following requirements are satisfied:
(1) The aggregate value of the irrevocable letter of credit shall be equal to or greater than the amount determined by subsection (a) of this section;
(2) The irrevocable letter of credit shall run to the State for the benefit of Attorney General, for the credit of the State Consumer Protection Fund created under § 2527 of this title, and for the benefit of all consumers injured by the wrongful act, omission, default, fraud or misrepresentation by a licensed provider in the course of its activity as a licensed provider. Compensation under the irrevocable letter of credit shall be for amounts which represent actual losses and shall not be payable for claims made by business creditors, third-party service providers, agents or persons otherwise in the employ of the licensed provider. The aggregate liability of the insured depository institution issuing the irrevocable letter of credit shall in no event exceed the amount of such irrevocable letter of credit; and
(3) Draws upon such irrevocable letters of credit shall be available by sight drafts thereunder, in amounts determined by the Attorney General, up to the aggregate amount of the irrevocable letter of credit.
(c) The Attorney General may require potential claimants to provide such documentation and affirmations as the Attorney General may determine to be necessary and appropriate. In the event the Attorney General determines that multiple consumers have been injured by a licensed provider, the Attorney General shall cause a notice to be published for the purpose of identifying all relevant claims.
(d) The Attorney General may refuse release of an irrevocable letter of credit, following the surrender of a license, up to 2 years after the effective date of such termination of licensure.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2416A. Customer service.

§ 2416A. Customer service.
A provider that is required to be licensed under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate, during ordinary business hours.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2420A. Cancellation of agreement; waiver.

§ 2420A. Cancellation of agreement; waiver.
(a) An individual may cancel an agreement before midnight of the third business day after the individual assents to it, unless the agreement does not comply with subsection (b) of this section or § 2419A or 2428A of this title, in which event the individual may cancel the agreement within 30 days after the individual assents to it. To exercise the right to cancel, the individual must give notice in a record to the provider. Notice by mail is given when mailed.
(b) An agreement must be accompanied by a form that contains in bold-face type surrounded by bold black lines:
Notice of Right to Cancel
You may cancel this agreement, without any penalty or obligation, at any time before midnight of the third business day that begins the day after you agree to it by electronic communication or by signing it.
To cancel this agreement during this period, send an e-mail to ____ E-mail address of provider or mail or deliver a signed, dated copy of this notice, or any other written notice to ____ Name of provider at ____ Address of provider before midnight on ____ Date
If you cancel this agreement within the 3-day period, we will refund all money you already have paid us.
You also may terminate this agreement at any later time, but we are not required to refund fees you have paid us.
I cancel this agreement,
________________________________ Print your name
________________________________ Signature
________________________________ Date
(c) If a personal financial emergency necessitates the disbursement of an individual's money to 1 or more of the individual's creditors before the expiration of 3 days after an agreement is signed, an individual may waive the right to cancel. To waive the right, the individual must send or deliver a signed, dated statement in the individual's own words describing the circumstances that necessitate a waiver. The waiver must explicitly waive the right to cancel. A waiver by means of a standard-form record is void.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2421A. Required language.

§ 2421A. Required language.
Unless the Attorney General, by rule, provides otherwise, the disclosures and documents required by this chapter must be in English. If a provider communicates with an individual primarily in a language other than English, the provider must furnish a translation into the other language of the disclosures and documents required by this chapter.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2424A. Voluntary contributions.

§ 2424A. Voluntary contributions.
A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual. A provider may accept voluntary contributions from an individual but, until 30 days after completion or termination of a plan, the aggregate amount of money received from or on behalf of the individual may not exceed the total amount the provider may charge the individual under § 2423A of this title.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2425A. Voidable agreements.

§ 2425A. Voidable agreements.
(a) If a provider imposes a fee or other charge or receives money or other payments not authorized by § 2423A or § 2424A of this title, the individual may void the agreement and recover as provided in § 2435A of this title.
(b) If a provider is not licensed as required by this chapter when an individual assents to an agreement, the agreement is voidable by the individual.
(c) If an individual voids an agreement under subsection (b) of this section, the provider does not have a claim against the individual for breach of contract or for restitution.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2426A. Termination of agreements.

§ 2426A. Termination of agreements.
(a) If an individual who has entered into an agreement fails for 60 days to make payments required by the agreement, a provider may terminate the agreement.
(b) If a provider holds money on behalf of a debtor to pay creditors and a provider or an individual terminates an agreement, the provider shall immediately return to the individual:
(1) Any money of the individual held in trust for the benefit of the individual; and
(2) Sixty-five percent of any portion of the set-up fee received pursuant to § 2423A(d)(2) of this title which has not been credited against settlement fees.
(c) If a provider does not hold money on behalf of a debtor to pay creditors and if a provider or an individual terminates an agreement, the provider shall immediately return to the individual 65 percent of fees associated with that percentage of the principal amount remaining unsettled at the time of termination.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2427A. Periodic reports and retention of records.

§ 2427A. Periodic reports and retention of records.
(a) A provider shall provide the accounting required by subsection (b) of this section:
(1) Upon cancellation or termination of an agreement; and
(2) Before cancellation or termination of any agreement:
(A) At least once each month; and
(B) Within 5 business days after a request by an individual, but the provider need not comply with more than 1 request in any calendar month.
(b) A provider, in a record, shall provide each individual for whom it has established a plan an accounting of the following information:
(1) The amount of money received from the individual since the last report;
(2) The amounts and dates of disbursement made on the individual's behalf, or by the individual upon the direction of the provider, since the last report to each creditor listed in the plan;
(3) The amounts deducted from the amount received from the individual;
(4) The amount held in reserve; and
(5) If, since the last report, a creditor has agreed to accept as payment in full an amount less than the principal amount of the debt owed by the individual:
(A) The total amount and terms of the settlement;
(B) The amount of the debt when the individual assented to the plan;
(C) The amount of the debt when the creditor agreed to the settlement; and
(D) The calculation of a settlement fee.
(c) A provider shall maintain records for each individual for whom it provides debt-management services for a minimum of 5 years after the final payment made by the individual and produce a copy of them to the individual within a reasonable time after a request for them.
(d) (1) Every provider shall maintain such books, accounts and records relating to all transactions within this chapter as will enable the Attorney General to enforce full compliance with this chapter;
(2) All books, accounts and records of the provider shall be preserved and kept available as provided in this chapter or for such longer period of time as the Attorney General may by regulation require; and
(3) The Attorney General may prescribe the minimum information to be shown in such books, accounts and records of the provider so that such records will enable the Attorney General to determine compliance with this chapter.
(e) The provider may use electronic or other means of storage of all books, accounts and records that it is required to maintain.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2429A. Notice of litigation.

§ 2429A. Notice of litigation.
No later than 30 days after a provider has been served with notice of a civil action for violation of this chapter by or on behalf of an individual who resides in this state at either the time of an agreement or the time the notice is served, the provider shall notify the Attorney General in a record that it has been sued.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2430A. Advertising.

§ 2430A. Advertising.
A provider that advertises debt-management services shall disclose in an easily comprehensible manner the information specified in § 2417A(d)(3) and (4) of this title.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2431A. Liability for the conduct of other persons.

§ 2431A. Liability for the conduct of other persons.
If a provider delegates any of its duties or obligations under an agreement or this chapter to another person, including an independent contractor, the provider is liable for conduct of the person which, if done by the provider, would violate the agreement or this chapter.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2434A. Suspension, revocation, or nonrenewal of license.

§ 2434A. Suspension, revocation, or nonrenewal of license.
(a) In this section “insolvent” means:
(1) Having generally ceased to pay debts in the ordinary course of business other than as a result of good-faith dispute;
(2) Being unable to pay debts as they become due; or
(3) Being insolvent within the meaning of the federal bankruptcy law, 11 U.S.C. § 101 et seq., as amended.
(b) The Attorney General may suspend, revoke, or deny renewal of a provider's license if:
(1) A fact or condition exists that, if it had existed when the licensed provider applied for its provider license, would have been a reason for denying the license;
(2) The provider has committed a material violation of this chapter or a rule or order of the Attorney General under this chapter;
(3) The provider is insolvent;
(4) The provider or an employee or affiliate of the provider has refused to permit the Attorney General to make an examination authorized by this chapter; or
(5) The provider has not responded within a reasonable time and in an appropriate manner to communications from the Attorney General.
(c) If a provider does not comply with § 2422A(f) of this title or if the Attorney General otherwise finds that the public health or safety or general welfare requires emergency action, the Attorney General may order a summary suspension of the provider's license, effective on the date specified in the order.
(d) If the Attorney General suspends, revokes, or denies the renewal of a provider license, the Attorney General may seek a court order authorizing seizure of any or all of the money in a trust account required by § 2422A of this title, as well as all books, records, accounts, and other property of the provider which are located in this State.
(e) If the Attorney General makes a preliminary determination to suspend or revoke a provider's license, the provider may file a request for a hearing with the Attorney General pursuant to subchapter IV of the Delaware Administrative Procedures Act, Chapter 101 of Title 29. The Attorney General's preliminary determination may become a final decision if such a request is not timely filed. Notwithstanding any other provisions of this Code, any final order under this section will be a public record.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2435A. Private enforcement.

§ 2435A. Private enforcement.
(a) If an individual voids an agreement pursuant to § 2425A(b) of this title, the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except amounts paid to creditors, in addition to the recovery under paragraphs (c)(3) and (c)(4) of this section.
(b) If an individual voids an agreement pursuant to § 2425A(a) of this title, the individual may recover in a civil action 3 times the total amount of the fees, charges, money, and payments made by the individual to the provider, in addition to the recovery under paragraph (c)(4) of this section.
(c) Subject to subsection (d) of this section, an individual with respect to whom a provider violates this chapter may recover in a civil action from the provider and any person that caused the violation:
(1) Compensatory damages for injury, including noneconomic injury, caused by the violation;
(2) Except as otherwise provided in subsection (d) of this section, with respect to a violation of § 2417A, § 2419A, § 2420A, § 2421A, § 2422A, § 2423A, § 2424A, § 2427A, or § 2428A(a), (b), or (d) of this title, the greater of the amount recoverable under paragraph (c)(1) of this section or $5,000;
(3) Punitive damages; and
(4) Reasonable attorney's fees and costs.
(d) In a class action, except for a violation of § 2428A(a)(5) of this title, the minimum damages provided in paragraph (c)(2) of this section do not apply.
(e) In addition to the remedy available under subsection (c) of this section, if a provider violates an individual's rights under § 2420A of this title, the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except for amounts paid to creditors.
(f) A provider is not liable under this section for a violation of this chapter if the provider proves that the violation was not intentional and resulted from a good-faith error notwithstanding the maintenance of procedures reasonably adapted to avoid the error. An error of legal judgment with respect to a provider's obligations under this chapter is not a good-faith error. If in connection with a violation, the provider has received more money than authorized by an agreement or this chapter, the defense provided by this subsection is not available unless the provider refunds the excess within 2 business days of learning of the violation.
(g) The Attorney General shall assist an individual in enforcing a judgment against the surety bond or other security provided under § 2413A or § 2414A of this title.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2436A. Violation of unfair or deceptive practices statute.

§ 2436A. Violation of unfair or deceptive practices statute.
If an act or practice of a provider violates both this chapter and Chapter 25 of this title, an individual may not recover under both for the same act or practice.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2437A. Statute of limitations.

§ 2437A. Statute of limitations.
(a) An action or proceeding brought pursuant to § 2433A(a), (b), or (c) of this title must be commenced within 4 years after the conduct that is the basis of the Attorney General's complaint.
(b) An action brought pursuant to § 2435A of this title must be commenced within 3 years after the latest of:
(1) The individual's last transmission of money to a provider;
(2) The individual's last transmission of money to a creditor at the direction of the provider;
(3) The provider's last disbursement to a creditor of the individual;
(4) The provider's last accounting to the individual pursuant to § 2427A(a) of this title;
(5) The date on which the individual discovered or reasonably should have discovered the facts giving rise to the individual's claim; or
(6) Termination of actions or proceedings by the Attorney General with respect to a violation of the chapter.
(c) The period prescribed in paragraph (b)(5) of this section is tolled during any period during which the provider or, if different, the defendant has materially and wilfully misrepresented information required by this chapter to be disclosed to the individual if the information so misrepresented is material to the establishment of the liability of the defendant under this chapter.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2438A. Uniformity of application and construction.

§ 2438A. Uniformity of application and construction.
In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24A. DEBT-MANAGEMENT SERVICES › § 2439A. Relation to Electronic Signatures in Global and National Commerce Act.

§ 2439A. Relation to Electronic Signatures in Global and National Commerce Act.
This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. § 7001 et seq.) but does not modify, limit, or supersede § 101(c) of that act (15 U.S.C. § 7001(c)) or authorize electronic delivery of any of the notices described in § 103(b) of that act (15 U.S.C. § 7003(b)).
75 Del. Laws, c. 430, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter I. General Provisions › § 2401B. Purpose.

§ 2401B. Purpose.
The purpose of this chapter is to protect homeowners from unfair or deceptive practices by foreclosure consultants or through foreclosure reconveyance agreements.
76 Del. Laws, c. 419, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter I. General Provisions › § 2403B. Exempt agreements and persons.

§ 2403B. Exempt agreements and persons.
This chapter does not apply to:
(1) An individual admitted to practice law in this State, while performing any activity related to the individual's regular practice of law in this State;
(2) A person who holds, or is owed as an obligation secured by, a lien on any residence in default with respect to which the person performs services in connection with the obligation or lien, if the obligation or lien did not arise as a result of a foreclosure reconveyance;
(3) A person doing business under any law of this State or the United States, which law regulates banks, trust companies, savings and loan associations, credit unions, insurance companies while performing services as part of the person's normal business activities;
(4) A person originating or closing a loan in a person's normal course of business if, as to that loan:
a. The loan is subject to the requirements of the federal Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601-2617; or
b. With respect to any second mortgage or home equity line of credit, the loan is subordinate to, and closed simultaneously with, a qualified first mortgage loan under paragraph (4)a. of this section or is initially payable on the face of the note or contract to an entity included in paragraph (3) of this section;
(5) A judgment creditor of the homeowner, if the judgment creditor's claim accrued before the action to foreclose is filed;
(6) A title insurer authorized to conduct business in this State while performing title insurance services;
(7) A person licensed as a mortgage broker or lender under Title 5 while acting under the authority of that license;
(8) A person licensed as a real estate broker or real estate salesperson under the Delaware Code while engaging in any activity for which the person is licensed;
(9) A nonprofit organization that offers counseling or advice to homeowners in foreclosure or loan default, if the organization is not directly or indirectly related to, and does not contract for services with, for-profit lenders or foreclosure purchasers;
(10) An organization that is licensed to practice debt management services under Chapter 24A of this title while the person engages in any activity for which the organization is licensed;
(11) A public corporation, government or governmental subdivision, agency, or instrumentality; or
(12) A lien hold mortgagee who takes title through the normal state prescribed foreclosure process or through a deed in lieu of foreclosure.
76 Del. Laws, c. 419, §  1;  78 Del. Laws, c. 196, §  6;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter I. General Provisions › § 2404B. Required language.

§ 2404B. Required language.
The disclosures and documents required by this chapter must be in English. If a person communicates with an individual primarily in a language other than English, that person must furnish a translation into the other language of the disclosures and documents required by this chapter.
76 Del. Laws, c. 419, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter II. Foreclosure Consultants › § 2414B. Waiver of rights.

§ 2414B. Waiver of rights.
Any provision in a foreclosure consulting contract that attempts or purports to waive the homeowner's rights under this chapter, consent to jurisdiction for litigation or choice of law in a state other than this State, consent to a venue in a county other than the county in which the property is located or impose any costs or filing fees greater than the actual costs and fees, is void.
76 Del. Laws, c. 419, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter II. Foreclosure Consultants › § 2415B. Prohibited acts.

§ 2415B. Prohibited acts.
(a) A foreclosure consultant may not:
(1) Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that the foreclosure consultant would perform;
(2) Claim, demand, charge, collect, or receive any interest or any other compensation for any loan that the foreclosure consultant makes to the homeowner that exceeds 8% per year;
(3) Take any wage assignment, any lien, or any type of real or personal property, or other security to secure the payment of compensation;
(4) Receive any consideration from any third party in connection with foreclosure consulting services provided to a homeowner unless the consideration is first fully disclosed in writing to the homeowner;
(5) Acquire any interest, directly or indirectly, or by means of a related person, in a residence in default from a homeowner with whom the foreclosure consultant has contracted;
(6) Take any power of attorney from a homeowner to enter into a foreclosure consulting contract that does not comply in all respects with this subchapter; or
(7) Facilitate or engage in any transaction that is unconscionable under the terms and circumstances of the transaction.
(b) No person may engage in any of the activities identified in § 2402B(1) or (3) of this title if such activities are prohibited by § 910 of Title 11.
(c) No person may engage in any of the activities identified in § 2402B(1) or (3) of this title for which registration is required under Chapter 24 of this title, unless such person has registered and fulfilled all other applicable requirement of that chapter.
76 Del. Laws, c. 419, §  1;  78 Del. Laws, c. 196, §  8;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter III. Foreclosure Reconveyances › § 2424B. Waiver of rights.

§ 2424B. Waiver of rights.
Any provision in an agreement concerning a foreclosure reconveyance that attempts or purports to waive the homeowner's rights under this chapter, consent to jurisdiction for litigation or choice of law in a state other than this State, consent to a venue in a county other than the county in which the property is located or impose any costs or filing fees greater than the actual costs and fees, is void.
76 Del. Laws, c. 419, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter III. Foreclosure Reconveyances › § 2426B. Presumptions, accounting, bona fide purchaser.

§ 2426B. Presumptions, accounting, bona fide purchaser.
(a) For the purposes of § 2425B(1)a. of this title, there is a rebuttable presumption that:
(1) A homeowner has a reasonable ability to pay for a subsequent reconveyance of the property if the homeowner's payments for primary housing expenses and regular principal and interest payments on other personal debt, on a monthly basis, do not exceed 60% of the homeowner's monthly gross income; and
(2) The foreclosure purchaser has not verified reasonable payment ability if the foreclosure purchaser has not obtained documents other than a statement by the homeowner of assets, liabilities, and income.
(b) The foreclosure purchaser shall make a detailed accounting of the basis for the amount of a payment made to the homeowner of a property resold within 18 months after entering into a foreclosure reconveyance agreement in accordance with § 2425B(2)b. of this title. The accounting shall include documentation of expenses and other consideration paid by the foreclosure purchaser and deducted from the resale price.
(c) A bona fide purchaser for value or bona fide lender for value who enters into a transaction with a homeowner or a foreclosure purchaser when a foreclosure consulting contract is in effect or during the period when a foreclosure reconveyance may be canceled, without notice of those facts, receives good title to the property, free and clear of the right of the parties to the foreclosure consulting contract or the right of the homeowner to rescind the foreclosure reconveyance.
(d) This subchapter may not be construed to impose any duty on a purchaser, title insurer, or title insurance producer with respect to the application of the proceeds of a sale of property by a foreclosure purchaser.
76 Del. Laws, c. 419, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter IV. Enforcement and Remedies › § 2427B. Enforcement.

§ 2427B. Enforcement.
(a) The Attorney General shall have the same authority to enforce and carry out this chapter as is granted by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title.
(b) If a court or tribunal of competent jurisdiction finds that any person has wilfully violated this chapter, the Attorney General, upon petition to the court or tribunal, shall recover from the person, on behalf of the State, in addition to all costs, a civil penalty of not more than $10,000 per violation pursuant to § 2533 of this title. If the violation is against an elder person or person with a disability or an additional civil penalty of not more than $10,000 per violation shall be recovered pursuant to § 2581 of this title. Each day that a wilful violation continues shall be considered a separate violation.
(c) For the purpose of this chapter, a wilful violation occurs when the party committing the violation knew or should have known that the party's conduct was of the nature prohibited by this chapter.
76 Del. Laws, c. 419, §  1;  77 Del. Laws, c. 282, §  17;  79 Del. Laws, c. 371, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter IV. Enforcement and Remedies › § 2428B. Remedies, penalties, and violation of order or injunction.

§ 2428B. Remedies, penalties, and violation of order or injunction.
(a) A person engages in a deceptive trade practice and is subject to the remedies available in § 2533 of this title when, in the course, of such person's business, vocation, or occupation, such person violates any provision of this chapter.
(b) Any homeowner who brings an action under this chapter may be awarded monetary damages by a court of competent jurisdiction.
(c) A person who violates any order or injunction issued pursuant to this chapter is subject to the provisions of § 2598 [repealed] of this title.
(d) A person who violates any provision of this chapter shall be guilty of a class A misdemeanor.
76 Del. Laws, c. 419, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24B. FORECLOSURE CONSULTANTS AND RECONVEYANCES › Subchapter IV. Enforcement and Remedies › § 2429B. Remedies and penalties not exclusive.

§ 2429B. Remedies and penalties not exclusive.
The remedies and penalties provided for in this chapter are not exclusive and shall be in addition to any other procedures, rights or remedies which exist with respect to any other provisions of law including but not limited to state and/or federal criminal prosecutions and/or actions brought by private parties.
76 Del. Laws, c. 419, §  1;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24C. MORTGAGE LOAN MODIFICATION SERVICES › § 2402C. Definitions.

§ 2402C. Definitions.
As used in the chapter, unless the context requires otherwise:
(1) “Commercial communication” means any written or oral statement, illustration, or depiction in any medium that is designed to effect a sale of or create interest in purchasing, any mortgage modification service.
(2) “Dwelling” means a residential structure containing 4 or fewer units, whether or not the structure is attached to real property, that is primarily for personal, family, or household use.
(3) “Dwelling loan” or “mortgage loan” means any loan secured by a dwelling, and any associated deed of trust or mortgage.
(4) “Mortgage loan modification services” means services as an intermediary between an individual and 1 or more dwelling loan creditors for the purpose of obtaining assent to the repayment of a mortgage loan on terms more favorable to the individual than the terms of the original mortgage loan.
(5) “Mortgage loan modification services provider” means any person that provides, offers to provide, or arranges for others to provide, any mortgage modification service but does not include the dwelling loan holder, servicer, or any agent or contractor of such individuals or entities.
(6) “Servicer” means the individual or entity responsible for receiving any scheduled periodic payment from a homeowner pursuant to the terms of the dwelling loan that is the subject of the offer to provide mortgage modification services or for making the payments of principal and interest and such other payments with respect to the amounts received as may be required pursuant to the terms of the mortgage servicing loan documents or servicing contract.
78 Del. Laws, c. 196, §  9;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24C. MORTGAGE LOAN MODIFICATION SERVICES › § 2403C. Exemptions.

§ 2403C. Exemptions.
This chapter does not apply to:
(1) An individual admitted to practice law in this State, who is in an attorney client relationship, while performing any activity related to the individual's regular practice of law in this State;
(2) A person doing business under any law of this State or the United States, which law regulates banks, trust companies, savings and loan associations, credit unions, insurance companies while performing services as part of the person's normal business activities;
(3) A person licensed as a mortgage loan originator, broker or lender under Title 5 or as a debt management service provider in Chapter 24A of this title, while acting under the authority of that license;
(4) A person licensed as a real estate broker or real estate salesperson under Title 24 while negotiating with the mortgage loan holder on a dwelling that is listed for sale by the broker or brokerage organization as long as no additional fee is charged for the negotiation;
(5) A nonprofit organization that offers housing counseling or advice to homeowners; or
(6) A public corporation, government or governmental subdivision, agency, or instrumentality.
78 Del. Laws, c. 196, §  9;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24C. MORTGAGE LOAN MODIFICATION SERVICES › § 2404C. Registration required.

§ 2404C. Registration required.
Unless exempted under this chapter, a person may not provide mortgage loan modification services to an individual who it reasonably should know resides in this State at the time it agrees to provide the services, unless the person satisfies the following requirements:
(1) The person registers with, and is issued and maintains a certificate of registration from the Attorney General in accordance with the following requirements:
a. The person shall submit a completed registration application on a form approved by the Attorney General, along with a nonrefundable fee of $1000 which shall be deposited in the State Treasury to the credit of the State Consumer Protection Fund created under § 2527 of this title. Funds received pursuant to this chapter may be used to support foreclosure relief programs.
b. The registration form shall be accompanied by a copy of all print or electronic advertising and scripts of telephonic or broadcast advertising.
c. The registration form shall be accompanied by the bond required pursuant to this section.
(2) The person provides an original corporate surety bond, with surety provided by a corporation authorized to transact business in this State, in the principal sum of $100,000. The bond shall run to the State for the benefit of the Attorney General and for the benefit of all consumers injured by any wrongful act, omission, default, fraud or misrepresentation by such person in the course of its activity authorized by this chapter.
78 Del. Laws, c. 196, §  9;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24C. MORTGAGE LOAN MODIFICATION SERVICES › § 2405C. Registration procedure.

§ 2405C. Registration procedure.
(a) Except as otherwise provided in subsection (b) of this section, the Attorney General shall register a person in compliance with § 2404C of this title.
(b) The Attorney General may deny registration if:
(1) The application contains information that is materially erroneous or incomplete;
(2) An officer, director, member or owner of the applicant has been convicted of a crime, or suffered a civil judgment, involving dishonesty;
(3) The Attorney General finds that the financial responsibility, experience, character, or general fitness of the applicant or its owners, members, directors, employees, or agents does not warrant belief that the business will be operated in compliance with this chapter.
(c) Registration shall be renewed annually by using an approved form and submitting a renewal fee in the amount of $500.
78 Del. Laws, c. 196, §  9;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24C. MORTGAGE LOAN MODIFICATION SERVICES › § 2406C. Form and content of contracts.

§ 2406C. Form and content of contracts.
(a) A contract for mortgage loan modification services shall be in writing and provided to the homeowner, without changes, alterations, or modification, for review at least 24 hours before it is signed by the homeowner.
(b) A contract for mortgage loan modification services shall be dated and personally signed with each page being initialed, by both the homeowner and the provider.
(c) A contract for mortgage loan modification service shall be printed in at least 12-point type and shall include the name and address of the mortgage modification service provider and the date the homeowner signed the agreement.
(d) A contract for mortgage loan modification service shall fully disclose the exact nature of the modification services to be provided and the total amount and terms of compensation to be received by the mortgage loan modification service provider.
(e) A contract for mortgage loan modification services must include a provision that allows the homeowner to cancel at any time without penalty and a separate, detachable page designated “NOTICE OF CANCELLATION” containing the name and address of the provider for the use of the homeowner if services are to be canceled.
78 Del. Laws, c. 196, §  9;
2023 Delaware Code › Title 6 - Commerce and Trade › Chapter 24C. MORTGAGE LOAN MODIFICATION SERVICES › § 2407C. Required disclosures.

§ 2407C. Required disclosures.
Any commercial communication by a mortgage loan modification services provider shall include the following statements in a clear and prominent format:
(1) “(Name of Company) is not associated with the government, and our service is not approved by the government or your lender.”
(2) “Even if you accept this offer and use our service, your lender may not agree to change your loan.”
(3) “You may stop doing business with us at any time. You may accept or reject any offer of mortgage modification we may obtain from your lender or servicer. If you reject the offer, you do not have to pay us.”
78 Del. Laws, c. 196, §  9;