(a) Each contract entered into by the licensee and the debtor shall be in writing and signed
by both parties. The licensee shall furnish the debtor with a copy of the signed contract. Each
such contract shall set forth:
(1) the dollar charges agreed upon for the services of the licensee, clearly disclosing to such
debtor the total amount which may be retained by licensee for services if the contract is fully
performed, which maximum amount would be the origination fee together with 15 percent of the
amount scheduled to be liquidated by such contract. This disclosure must state that if the amount
of debt owed is increased by interest, late fees, over the limit fees, and other amounts imposed
by the creditor or by reason of the events under paragraph (c), the length of the contract would
be extended and remain in force and that the total dollar charges agreed upon may increase at
the rate agreed upon in the original contract;
(2) the terms upon which the debtor may cancel the contract as set out in section
(3) all debts which are to be managed by the licensee, including the name of the creditor and
the amount of the debt; and
(4) such other matter as the commissioner may require by rule.
(b) A contract shall not be effective until a payment has been made to the licensee for
distribution to creditors or until three business days after the signing thereof, whichever is later.
Within such period an individual may disaffirm said contract and upon such disaffirmance said
contract shall be null and void.
(c) Total fees contained in the contract may be exceeded in relation to creditors under
open-end agreements if it is agreed to in the contract and the additional debts so contracted to
be prorated do not exceed ten percent of the original debts in the contract or written revisions to
the original contract.
History: 1969 c 1120 s 10; 1971 c 441 s 3; 1985 c 248 s 70; 1996 c 414 art 1 s 40; 1997
c 157 s 61