PRINTER'S NO. 2925
No. 2077 Session of 2007
INTRODUCED BY FRANKEL, BENNINGTON, BRENNAN, COSTA, DERMODY, GIBBONS, HARKINS, JAMES, JOSEPHS, MARSHALL, R. MILLER, MUSTIO, PARKER, PETRI, RAYMOND, REED, K. SMITH, TURZAI, WAGNER, WALKO, WHEATLEY, J. WHITE AND YOUNGBLOOD, DECEMBER 4, 2007
REFERRED TO COMMITTEE ON COMMERCE, DECEMBER 4, 2007
AN ACT 1 Amending Title 18 (Crimes and Offenses) of the Pennsylvania 2 Consolidated Statutes, further providing for the offense of 3 debt pooling. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 7312 of Title 18 of the Pennsylvania 7 Consolidated Statutes is amended to read: 8 § 7312. Debt pooling. 9 (a) Offense defined.--Any person engaged in the business of 10 debt pooling shall be guilty of a misdemeanor of the third 11 degree. 12 (b) Exceptions.--Subsection (a) of this section shall not 13 apply to: 14 (1) Any person who is admitted to practice before the 15 Supreme Court of Pennsylvania or any court of common pleas of 16 this Commonwealth or any partnership or professional 17 corporation all of the members or shareholders of which are
1 so admitted. 2 (2) Better business bureaus, legal aid societies[,] or 3 welfare agencies who act without compensation or profit on 4 behalf of debtors as debt adjusters or debt poolers. 5 (3) Organizations in the business of debt adjusting or 6 debt pooling that are exempt from taxation under section 7 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 8 99-514, 26 U.S.C. § 501(c)(3)) or any successor provisions 9 thereof. 10 (c) Definitions.--As used in this section the following 11 words and phrases shall have the meanings given to them in this 12 subsection: 13 "Creditor." A person to whom a debt or obligation is owed 14 from another whether such is payable in installments or 15 otherwise. 16 "Debtor." A person who owes an obligation or debt to another 17 whether such is repayable in installments or otherwise. 18 "Debt pooling." The making of a contract, express or 19 implied, with a debtor or debtors whereby the debtor agrees to 20 pay a sum of money periodically or otherwise to another person 21 for the purpose of having such other person distribute the same 22 among certain specified creditors in accordance with a plan 23 agreed upon, or to be agreed upon, and whereby such other person 24 shall receive a consideration for any such services rendered, or 25 to be rendered, in connection therewith. 26 Section 2. This act shall take effect immediately. K27L18BIL/20070H2077B2925 - 2 -