HF 2326 — A bill for an act relating to debt management programs, services, fees, and licensee requirements.

House File 2326 - IntroducedReprinted HOUSE FILE 2326 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 603) (As Amended and Passed by the House April 1, 2026) A BILL FOR An Act relating to debt management programs, services, fees, and licensee requirements.

TLSBHF 5596HV2326 (1)(2) 91 nls/konls/ko/md H.F.

Section 533A.8, Code 2026, is amended by adding the following new subsection:

NEW SUBSECTION .

10A.

If a debtor who has contracted with a licensee to settle a debt has executed a debt settlement agreement with a creditor to settle such debt and has made at least one payment pursuant to that agreement, and the debtor subsequently fails to complete the payment terms required under that debt settlement agreement, the licensee shall attempt to renegotiate, resolve, reduce, or otherwise alter the terms of the debt with the creditor and shall not request or receive an additional fee from the debtor for any additional debt management service provided by the licensee for that debt.

This subsection does not prohibit a licensee from requesting or receiving payment of any outstanding balance of the fee required by the contract between the licensee and debtor for that debt.

HF 2326 (2) 91 -1- nls/ko/md 1/3 H.F.

2326 Sec.

5.

The debtor has made at least one payment pursuant to the resolution agreement or other contractual agreement entered LSBinto 5596HVunder (1)paragraph 91“a”. -1- nls/ko 1/3 H.F.

2326 into under paragraph “a”.

To the extent that debts enrolled in the debt management program are renegotiated, resolved, reduced, or otherwise altered individually, the fee or consideration for the debt management service bears the same proportional relationship to the total fee or consideration for renegotiating, resolving, reducing, or otherwise altering the terms of the entire debt balance as the individual debt amount bears to the entire debt amount.amount, not to exceed thirty percent of the total amount of debt enrolled by the debtor at the time of enrollment in the debt management program.

6.

Section 533A.9, subsection 5, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:

Sectiona. 533A.9, subsection 5, Code 2026, is amended by striking the subsection.

Notwithstanding any provision of this section to HF 2326 (2) 91 -2- nls/ko/md 2/3 H.F.

2326 the contrary, the total aggregate fee or consideration charged by a licensee for all debt management services provided by the licensee to a debtor shall not exceed thirty percent of the total amount of debt enrolled by the debtor at the time of enrollment in the debt management program.

b.

A licensee may assess and collect the fee for debt management services on a per-debt basis as a debt is renegotiated, settled, reduced, or otherwise altered in a manner consistent with this section and applicable federal law.

7.

Section 533A.9, Code 2026, is amended by adding the following new subsection:

NEW SUBSECTION .

If a debt settlement agreement between a debtor and a creditor to settle a debt provides for the debtor to make more than one payment to the creditor, the licensee shall request or receive payment from the debtor of any fee for debt management services provided with respect to that debt incrementally over not less than one quarter of the length of the debtor’s period of repayment to such creditor.

Sec.

8.

EXPLANATIONHF The2326 inclusion(2) of91 this-3- explanationnls/ko/md does3/3 not constitute agreement with the explanation’s substance by the members of the general assembly.

This bill relates to debt management, services, fees, and licensee requirements.

Under current law, if a debt management program (program) is based on a model which requires a licensee to receive money or evidences thereof from a debtor to distribute to the debtor’s creditors, the licensee who receives the money for distribution shall maintain a separate bank trust account in which all payments received from the debtor for the benefit of creditors shall be deposited and shall remain until a remittance is made to either the debtor or the creditor.

Under the bill, a licensee shall maintain a separate bank account or dedicated account for such purpose.

Under current law, if a debt management program is not LSB 5596HV (1) 91 -2- nls/ko 2/3 H.F.

2326 based on a model which requires a licensee to receive money or evidences thereof from the debtor to distribute to the debtor’s creditors the debtor shall maintain full control of and access to any moneys set aside for payment to creditors, and the licensee may not receive consideration from any third party in connection with services rendered to a debtor.

The bill eliminates the prohibition on a licensee receiving consideration from a third party in connection with services rendered to a debtor.

Under current law, if a program is not based on a model that requires a licensee to receive money or evidences thereof from the debtor to distribute to the debtor’s creditors, a debtor may not be charged a fee exceeding the sum of the initiation fee plus 18 percent of the debtor’s enrolled debts, as detailed in Code section 533A.9(4).

Under the bill, a licensee may not request or receive payment of a fee for services unless:

(1) the licensee has renegotiated, resolved, reduced, or otherwise altered the terms of a debt pursuant to a resolution agreement or other contractual agreement between the debtor and the creditor;

(2) the debtor has made at least one payment pursuant to the agreement;

and (3) to the extent that debts enrolled in a service are renegotiated, resolved, reduced, or otherwise altered individually, the fee or consideration for the service bears the same proportional relationship to the total fee for altering the terms of the entire debt balance as the individual debt amount bears to the entire debt amount as owed at the time the debt was enrolled in the service, and the same percent is charged for each individual debt enrolled in the program.

Under the bill, a person licensed to provide debt management services is exempt from Code chapter 538A (credit services organizations).

The bill strikes Code sections 533A.8(5)(d) (licensee requirements) and 533A.9(5) (fee agreed in advance).