Terms Used In Kansas Statutes 50-1121
- Amortization: Paying off a loan by regular installments.
- Attorney-at-law: A person who is legally qualified and licensed to practice law, and to represent and act for clients in legal proceedings.
- Commissioner: means the state bank commissioner or designee, who shall be the deputy commissioner of the consumer and mortgage lending division of the office of the state bank commissioner. See Kansas Statutes 50-1117
- Consumer: means an individual who is a resident of this state. See Kansas Statutes 50-1117
- Credit services organization: means a person who engages in, or holds out to the public as willing to engage in, the business of debt management services for a fee, compensation or gain, or in the expectation of a fee, compensation or gain. See Kansas Statutes 50-1117
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means any individual, corporation, partnership, association, unincorporated organization or other form of entity, however organized, including a nonprofit entity. See Kansas Statutes 50-1117
- Personal property: includes money, goods, chattels, evidences of debt and things in action, and digital assets as defined in the revised uniform fiduciary access to digital assets act, K. See Kansas Statutes 77-201
No person required to be licensed under this act shall: (a) Delay payment of a consumer‘s debt for the purpose of increasing interest, costs, fees or charges payable by the consumer.
(b) Make any misrepresentation of any material fact or false promise to:
(1) Influence, persuade or induce a consumer to enter into a debt management services agreement; or
(2) cause or contribute to any misrepresentation by any other person acting on such person’s behalf.
(c) Make or use any false or misleading representation in the offer or sale of the services of a debt management services agreement or credit services organization business.
(d) Engage, directly or indirectly, in any fraudulent or deceptive act, practice or course of business in connection with the offer or sale of the services of a credit services organization.
(e) Make, or advise a consumer to make, any statement with respect to a consumer’s credit worthiness, credit standing or credit capacity that is false or misleading, or that should be known by the exercise of reasonable care to be false or misleading, to a consumer reporting agency or to a person who has extended credit to a consumer or to whom a consumer is applying for an extension of credit.
(f) Advertise or cause to be advertised the services of a credit services organization to Kansas consumers without first obtaining proper licensure from the commissioner.
(g) Receive compensation for rendering debt management services where the person has otherwise acted as a creditor for the consumer.
(h) Transfer, assign or attempt to transfer or assign, a license to any other person.
(i) Conduct credit services organization activities using any name other than the name or names approved by the commissioner.
(j) Operate as a collection agency.
(k) Receive or charge any fee in the form of a promissory note or other promise to pay.
(l) Accept or receive any reward, bonus, premium, commission or any other consideration for referring a consumer to any person.
(m) Give a reward, bonus, premium, commission or any other consideration for the referral of a consumer to the licensee’s credit services organization business and charge the consumer for the amount.
(n) Lend money or provide credit to a consumer.
(o) Obtain a mortgage or other security interest in real or personal property owned by a consumer.
(p) Structure a debt management services agreement in any manner that would result in a negative amortization of any of the consumer’s debts.
(q) Charge for or provide credit insurance.
(r) Purchase any debt or obligation of a consumer.
(s) Use any communication which simulates in any manner a legal or judicial process, or which gives the false appearance of being authorized, issued or approved by a government, governmental agency or attorney-at-law.
(t) While operating as a licensee, or a director, manager or officer of such licensee, be a director, manager, officer or owner of any creditor or a subsidiary of any such creditor, that is receiving or will receive payments from the licensee on behalf of a consumer with whom the licensee has entered into a debt management services agreement.
(u) Attempt to cause a consumer to waive or agree to forego rights or benefits under this act.