| (1) | A provider may not, directly or indirectly:
| (a) | include a secured debt in a plan, except as authorized by law other than this chapter; |
| (b) | misappropriate or misapply money the provider holds in trust; |
| (c) | settle a debt on behalf of an individual, unless the individual assents to the settlement after the creditor assents to the settlement; |
| (d) | take a power of attorney that authorizes the provider to settle a debt; |
| (e) | exercise or attempt to exercise a power of attorney after an individual terminates an agreement; |
| (f) | initiate a transfer from an individual's account at a bank or with another person unless the transfer is:
| (i) | a return of money to the individual; or |
| (ii) | before termination of an agreement, properly authorized by the agreement and this chapter, and for:
| (A) | payment to one or more creditors in accordance with an agreement; or |
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| (g) | offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement; |
| (h) | offer, pay, or give a gift or bonus, premium, reward, or other compensation to a lead generator or other person for referring a prospective customer, if the person making the referral:
| (i) | has a financial interest in the outcome of debt-management services provided to the customer, unless neither the provider nor the person making the referral communicates to the prospective customer the identity of the source of the referral; or |
| (ii) | compensates its employees on the basis of a formula that incorporates the number of individuals the employee refers to the provider; |
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| (i) | receive a bonus, commission, or other benefit for referring an individual to a person; |
| (j) | structure a plan in a manner that would result in a negative amortization of any of an individual's debts, unless a creditor that is owed a negatively amortizing debt agrees to refund or waive the finance charge on payment of the principal amount of the debt; |
| (k) | compensate the provider's employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements; |
| (l) | settle a debt or lead an individual to believe that a payment to a creditor is in settlement of a debt to the creditor unless, at the time of settlement, the individual receives a certification by the creditor that the payment:
| (i) | is in full settlement of the debt; or |
| (ii) | is part of a settlement plan, the terms of which are included in the certification, that, if completed according to its terms, will satisfy the debt; |
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| (m) | make a representation that:
| (i) | the provider will furnish money to pay bills or prevent attachments; |
| (ii) | payment of a certain amount will permit satisfaction of a certain amount or range of indebtedness; or |
| (iii) | participation in a plan will or may prevent litigation, garnishment, attachment, repossession, foreclosure, eviction, or loss of employment; |
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| (n) | misrepresent that it is authorized or competent to furnish legal advice or perform legal services; |
| (o) | represent in the provider's agreements, disclosures required by this chapter, advertisements, or website that the provider is:
| (i) | a not-for-profit entity unless the provider is organized and properly operating as a not-for-profit entity under the law of the state in which the provider was formed; or |
| (ii) | a tax-exempt entity unless the provider receives certification of tax-exempt status from the Internal Revenue Service and properly operates as a not-for-profit entity under the law of the state in which the provider was formed; |
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| (p) | take a confession of judgment or power of attorney to confess judgment against an individual; |
| (q) | employ an unfair, unconscionable, or deceptive act or practice; |
| (r) | knowingly omit any material information or material aspect of any provider's service, including:
| (i) | the amount of money or the percentage of the debt amount that an individual may save by using the provider's service; |
| (ii) | the amount of time necessary to achieve the results that the provider represents as achievable; |
| (iii) | the amount of money or the percentage of each outstanding debt that the individual is required to accumulate before the provider will:
| (A) | initiate an attempt with the individual's creditors or debt collectors to negotiate, settle, or modify the terms of the individual's debt; or |
| (B) | make a bona fide offer to negotiate, settle, or modify the terms of the individual's debt; |
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| (iv) | the effect of the service on:
| (A) | an individual's creditworthiness; or |
| (B) | collection efforts of the individual's creditors or debt collectors; |
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| (v) | the percentage or number of individuals who achieve the results that the provider represents are achievable; and |
| (vi) | whether a nonprofit entity offers or provides a provider's service; or |
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| (s) | make or use an untrue or a misleading statement:
| (ii) | in the provision of services subject to this chapter. |
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