USOBA Helps Montana Pass Debt Settlement Law

The Montana state legislature passed a bill to regulate the debt settlement industry in that state after receiving guidance from the United States Organization of Bankruptcy Alternatives.

The bill was signed into law April 27 after being passed by both houses of the Montana Legislature.

Among the things that the bill lays out are requirements in such areas as insurance, accounting, and disclosure to debtors for debt settlement providers doing business in that state. It also provides guidelines for fees and what can and cannot be said in advertising.

USOBA entered the discussion earlier in the year with suggestions that would tighten the regulations and make the language more specific in order to provide “adequate consumer protective measures.”   

“USOBA strongly advocates for regulation in the debt settlement industry,” said USOBA executive director Jenna Keehnen in a Feb. 6, 2009, letter to the Montana Legislature. “However, our directive is to ensure that fair and reasonable regulation includes ample consumer protections; is clear and concise; and reflects accurate expectations and requirements.