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Committee advances law to modernize licensing, oversight of debt‑resolution companies
Summary
The panel approved an amended bill that separates debt‑resolution firms from credit counselors, requires licensing, FDIC-insured client accounts, and preserves consumer protections that bar collection of fees until a resolution is reached.
The House Commerce Committee on March 26 approved an amended measure to modernize licensure and regulation of debt‑resolution providers.
Sponsor Representative Keasler told the committee the bill separates debt‑resolution companies from credit counselors, clarifies that providers may not collect fees until a creditor resolution is reached and the consumer has accepted the resolution and made payment, and requires licensees to hold client funds in FDIC‑insured accounts dedicated to resolution purposes.
"The bill will assist our consumers with greater transparency regarding debt resolution," Keasler said, describing a 24‑page bill that requires service agreements to disclose services and fees and preserves a consumer's right to terminate and owe only fees for services already provided.
The committee adopted two drafting amendments (coded 4631 and 5917) that were attached as part of the amendment process. Members said the change removes regulatory ambiguity and makes oversight easier for regulators by creating a separate regime for debt resolution providers.
The committee voted 22 ayes, 0 noes to send House Bill 743 as amended to Calendar and Rules.
Ending: The bill now moves to Calendar and Rules; sponsors said the changes aim to protect consumers while preserving legitimate debt‑resolution services.
