Administrative Code

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Virginia Administrative Code
Title 10. Finance And Financial Institutions
Agency 5. State Corporation Commission
Chapter 230. Debt Settlement Services Providers

10VAC5-230-50. Additional business requirements and restrictions; acquisitions.

A. A licensee shall continuously maintain the requirements and standards for licensure prescribed in § 6.2-2031 of the Code of Virginia.

B. If a licensee provides debt settlement services in connection with a debt settlement services agreement that has been set up or established by any person other than a credit counselor of the licensee, then the licensee shall ensure that (i) the total fees charged to the consumer in connection with the debt settlement services, including any fees for enrolling the consumer or setting up or establishing the agreement, do not exceed the limitations in § 6.2-2041 of the Code of Virginia; and (ii) the agreement complies with Chapter 20.1 and this chapter.

C. A licensee shall not sell or otherwise assign a debt settlement services agreement to another person unless the purchaser or assignee is licensed or exempt from licensure under Chapter 20.1.

D. A licensee shall not refer or direct an individual for whom the licensee is providing debt settlement services to any creditor that is an affiliate, owner, or subsidiary of the licensee, unless the licensee can establish that in accordance with subdivision 7 of § 6.2-2040 of the Code of Virginia the licensee did not and will not receive a gift or bonus, premium, reward, or other compensation, directly or indirectly, for advising, arranging, or assisting the individual in connection with obtaining an extension of credit or other service from the creditor, except for educational or counseling services required in connection with a government-sponsored program.

E. A licensee shall comply with all state and federal laws and regulations applicable to the conduct of its business, including the Standards for Safeguarding Customer Information (16 CFR Part 314).

F. A licensee or person required to be licensed under Chapter 20.1 shall not provide any information to the bureau that is false, misleading, or deceptive.

G. A licensee or person required to be licensed under Chapter 20.1 shall not provide any information to a consumer that is false, misleading, or deceptive.

H. A licensee or person required to be licensed under Chapter 20.1 shall not engage in any activity that directly or indirectly results in an evasion of the provisions of Chapter 20.1 or this chapter.

I. A person shall remain subject to the provisions of Chapter 20.1 and this chapter applicable to licensees in connection with all debt settlement services provided or offered to be provided while licensed under Chapter 20.1 notwithstanding the occurrence of any of the following events:

1. The person's license is surrendered, suspended, or revoked; or

2. The person ceases providing debt settlement services.

J. Any person submitting an application to acquire, directly or indirectly, 25% or more of the voting shares of a corporation or 25% or more of the ownership of any other person licensed to conduct business under Chapter 20.1 shall pay a nonrefundable application fee of $500.

Statutory Authority

§§ 6.2-2039 and 12.1-13 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 38, Issue 8, eff. December 15, 2021.

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