(1) Upon any
request for additional information or upon receipt of notice of any written
complaint against the provider, the provider shall, within ten (10) business
days, file with the Division a written answer to the request for additional
information or to the complaint.
(2) A provider shall immediately determine
the state of residence of a potential client during the first contact with the
potential client. If the potential client is a resident of the state of
Tennessee, the provider shall notify the potential client in writing of its
current registration status in the state of Tennessee.
(3) No later than thirty (30) days prior to
the opening of a branch office, a provider shall notify the Division in writing
of the opening of the branch office as well as the name of the person
responsible for the branch office and the certified counselor(s) and certified
debt specialist(s) working in the branch office.
(4) A provider shall comply with all
applicable federal and state laws and rules in providing debt-management
services and otherwise comply with all federal and state laws and rules
applicable to the provider.
(5) A
provider shall keep each client reasonably informed about the status of the
debt-management services being performed for the client and shall promptly
comply with the client's reasonable requests for information.
(6) A provider shall not use improper or
questionable methods of soliciting clients, including but not limited to
misleading or deceiving clients or utilizing scare tactics or other improper
tactics and shall not pay another person or accept payment from another person
for engaging in improper methods.
(7) A provider shall not associate its
business with any business or person that engages in or attempts to engage in
unfair, deceptive, or misleading practices or acts in its dealings with
clients.
(8) Unless responding to a
request for information, subpoena, or order issued by a regulatory agency, law
enforcement agency, or court of competent jurisdiction, a provider shall not
disclose any client information obtained relative to a debt-management services
agreement or plan to someone other than the client unless the disclosure is
expressly authorized in writing by the client.
(9) A provider shall not misrepresent its
debt-management services or the features of any service or make unwarranted
claims about the merits of a service that the provider offers.
(10) A provider shall not accept or offer
commissions or allowances, directly or indirectly, from other parties dealing
with the client in connection with work for which the provider is
responsible.
(11) Before the
execution of an agreement for debt-management services, a provider shall
clearly and conspicuously disclose to the client any interest the provider has
in a business that may affect the client. No provider shall allow its interest
in any business to affect the quality or results of the debt-management
services that the provider may be called upon to perform.
(12) A provider shall fully comply with all
Federal Trade Commission rules, regulations, and guidelines, including but not
limited to the Guides Concerning Use of Endorsements and Testimonials in
Advertising, 16 C.F.R. pt. 255.
(13) A provider shall not engage in false or
misleading advertising.
(14) A
provider shall not perform or recommend any debt-management services that would
violate applicable federal or state laws.
(15) A provider shall not engage in deceptive
or unfair trade practices. Examples of deceptive or unfair trade practices
include but are not limited to:
(a) Proposing
or communicating any alteration of a material term of a debt-management
services agreement or plan to a client or a client's creditor without first
receiving explicit written instructions from the client directing the provider
to make a specific alteration;
(b)
Expressly or impliedly representing that any of its goods or services are
"free" if the client will be asked to make any payment in connection with the
goods or services, other than a payment that will be forwarded in its entirety
to the client's creditors. A provider may represent that a consultation or
other initial contact is "free" if the consultation or contact is provided with
no obligation on the part of the client to make any payment in connection with
the consultation or contact;
(c)
Expressly or impliedly representing that any payments made by clients in
connection with providers are voluntary contributions or are payments to
support a non-profit organization, unless more than fifty percent (50%) of the
payment is paid to or for the benefit of the non-profit organization for
purposes other than to pay the provider for services rendered to a non-profit
organization;
(d) Expressly or
impliedly misrepresenting the effects of a debt-management plan on a client's
ability to obtain credit;
(e)
Enrolling a debtor in a debt-management plan unless, prior to enrollment, the
debtor has received credit counseling from a credit counselor who has
sufficient experience and training to counsel in financial literacy, money
management, budgeting, and responsible use of credit and is advised of the
various options available to the debtor for addressing the debtor's financial
problems;
(f) Enrolling a debtor in
a debt-management plan if the debtor's estimated monthly living expenses and
estimated monthly provider payments exceed his or her income. A debtor in this
situation may be enrolled in a debt-management plan if the debtor is
specifically advised not to enroll in a debt-management plan because the debtor
cannot afford the debt-management plan payment and the debtor independently
states that he or she believes that he or she can afford the debt-management
plan payment by reducing expenses, obtaining additional income or funds from
another source, or otherwise adjusting the budget estimate to make the
debt-management plan affordable;
(g) Disclosing or using any individual's
private financial and personal information that the provider receives in
connection with providing debt-management services except in accordance with
and as permitted by applicable law, including but not limited to the
Gramm-Leach-Bliley Act, 15 U.S.C.A. § 6801, et seq.;
(h) Entering into any agreement with any
person that contains any standards or criteria under which the person must
enroll debtors into a debt-management plan;
(i) Entering into any agreement with any
person that sets any minimum enrollment rate or other standard mandating the
number of individuals who must be enrolled in debt-management plans or an
amount that the person must collect from clients;
(j) Entering into any agreement with any
person that sets any minimum revenues or other standards mandating the amount
of revenue that must be generated through a debt-management plan;
(k) Using the name or mark of a person other
than the provider when communicating with debtors or creditors in connection
with the performance of debt-management services;
(l) Entering into any agreement with a third
party that limits the use of any data reflecting either the provider's or the
third party's performance of any debt-management services, including data
reflecting the payments that either the provider or the third party has
processed or is processing in connection with a debt-management plan;
(m) expressly or impliedly misrepresenting
the purpose of any fee or contribution that is paid by clients;
(n) Failing to clearly and conspicuously
disclose the nature and types of services that will be provided under any
agreement prior to the consumer's agreeing to receive such services;
(o) Debiting, cashing, depositing, or
otherwise collecting or attempting to collect monies from a client after a
client has asserted a violation of state law, regulation, or rule in connection
with the debt-management plan;
(p)
Using logos, symbols, business names, or the like that might represent or imply
to consumers an affiliation or association with any government
entity;
(q) Failing to maintain and
make available upon request to the Division full and complete substantiation
for any and all claims and representations made to debtors and in any
advertising or promotional materials;
(r) Submitting any false, misleading, or
deceptive information to the Division relating to a registration application or
renewal application; or
(s) Failing
to comply with all of the prerequisites for providing debt-management services
outlined in T.C.A. §
47-18-5517 and any applicable
federal laws, regulations, or rules.
