AADMO Finds Fatal Flaws in Florida's Proposed Law Regulating the Industry
A legal analysis released by the American Association of Debt Management Organizations (AADMO) finds that legislation waiting for the signature of Florida Governor Jeb Bush may be too broad and in conflict with existing law regulating the credit counseling industry.
This memorandum summarizes Florida's recently passed - but not yet signed into law - legislation regarding credit counseling services. The new legislation passed the Florida Senate on April 29, 2004 and the Florida House passed it on April 30, 2004. It was sent to Governor Bush on Thursday, May 13, 2004. He is given 15 days to sign the new legislation into law or veto it. The legislation would be effective on July 1, 2004.
The legislation applies not only to non-Florida-based credit counseling organizations that service Florida residents, but also to any credit counseling organization that is located in Florida (regardless of whether the organization is dealing with Florida or non-Florida residents).
The legislation also fails to repeal the existing law regulating the credit counseling industry in Florida.
The credit counseling industry supports fair and reasonable regulation of the industry but stresses that laws need to be consistent and not overly broad. The legislation in Florida, if signed into law, will have a chilling effect on the industry and may cause irreparable harm to those seeking management of their debts. The legislation will reduce the number of credit counseling agencies available to consumers and thereby limit their choices, as well as conflict with the law in Florida and that of other states causing potential litigation to interpret the new law.
ABOUT AADMO
AADMO is the credit counseling and debt management industry's largest trade association with nearly 150 members nationwide. It is an industry advocacy and education organization whose mission is to promote and ensure the continued operation and viability of credit counseling and debt management organizations.
AADMO is the only trade association to have held state law compliance workshops with the New York State Banking Department and the California Department of Corporations (the enforcement agencies) upon enactment of their respective laws governing credit counseling and AADMO is the only trade association for the industry to publish a formal summary of state laws that has been reviewed by state regulators. AADMO was recently recognized in Roll Call, the "official newspaper of Capitol Hill", as working to rid the marketplace of "bad actors" in credit counseling.
For a copy of the AADMO Credit Counseling Industry Compensation Study or for more information, please contact Mark Guimond at 540-548-1965.
