1Providing for the licensure of persons providing debt settlement
2services, for powers and duties of the Department of Banking 
<-3and Securities and for enforcement; imposing civil penalties;
4and making a related repeal.

5TABLE OF CONTENTS

6Chapter 1. Preliminary Provisions

7Section 101. Short title.

8Section 102 Definitions.

9Section 103. Nonapplicability.

10Chapter 3. Licensure

11Section 301. Requirements.

12Section 302. Application and required documentation.

13Section 303. Required information for application.

14Section 304. Not-for-profit license fees.

15Section 305. Penal bond.

16Section 306. Application information.

17Section 307. Public availability of application information.

18Section 308. Certificate of licensure.

1Section 309. Renewal of license.

2Section 310. Grounds for denial.

3Section 311. <-Payday loans (Reserved).

4Section 312. Reinstatement.

5Section 313. Limitations.

6Chapter 5. Provider Responsibilities

7Section 501. Good faith.

8Section 502. Prerequisites for providing debt settlement
9services.

10Chapter 7. Administration and Enforcement

11Section 701. Powers and duties.

12Section 702. Administrative proceedings.

13Section 703. Reports to department.

14Section 704. Violations.

15Section 705. Banking Fund.

16Chapter 21. Miscellaneous Provisions

17Section 2101. Relation to Electronic Signatures in Global and
18National Commerce Act.

19Section 2102. Transitional provisions.

20Section 2103. Repeal.

21Section 2104. Effective date.

22The General Assembly of the Commonwealth of Pennsylvania
23hereby enacts as follows:

24CHAPTER 1

25PRELIMINARY PROVISIONS

26Section 101. Short title.

27This act shall be known and may be cited as the Debt
28Settlement Services Act.

29Section 102. Definitions.

30The following words and phrases when used in this act shall

1have the meanings given to them in this section unless the
2context clearly indicates otherwise:

3"Affiliate." Any of the following:

4(1) A person that directly controls, is controlled by or
5is under common control with the licensee.

6(2) An officer of or individual performing similar
7functions with respect to the licensee.

8(3) A director of or individual performing similar
9functions with respect to the licensee.

10(4) An officer or director of or an individual
11performing similar functions with respect to a person
12described in paragraph (1).

13"Agreement." An agreement between a provider and an
14individual for the performance of debt settlement services.

15"Bank." A financial institution, including a commercial
16bank, savings bank, savings and loan association, credit union,
17mortgage bank and trust company, engaged in the business of
18banking, chartered under Federal or State law and regulated by a
19Federal or State banking regulatory authority.

20"Concessions." Assent to repayment of a debt on terms more
21favorable to an individual than the terms of the contract
22between the individual and a creditor.

23"Debt settlement services." Services as an intermediary
24between an individual and one or more unsecured creditors of the
25individual for the purpose of obtaining concessions where the
26contemplated concessions involve a reduction in principal of the
27individual's unsecured debt. The term does not include:

28(1) Legal services provided in an attorney-client
29relationship by an attorney licensed or otherwise authorized
30to practice law in this Commonwealth.

1(2) Accounting services provided in an accountant-client
2relationship by a certified public accountant licensed to
3provide accounting services in this Commonwealth.

4(3) Financial planning services provided in a financial
5planner-client relationship by a licensed member of a
6financial planning profession.

7"Department." The Department of Banking <-and Securities of
8the Commonwealth.

9"Good faith." Honesty in fact and the observance of
10reasonable standards of fair dealing.

<-11"Payday loan." As follows:

12(1) A loan or advance of money or credit to a consumer
13that, for a fee, finance charge or other consideration, does
14all of the following:

15(i) Accepts a check or other repayment mechanism
16from the consumer.

17(ii) Agrees to hold the check or repayment mechanism
18for a deferment period.

19(iii) Pays to the consumer a cash advance, a locally
20cashable check, debit card or money order or credits to
21the consumer's account the amount of the check less
22finance charges permitted.

23(2) The term includes an arrangement in which a person
24pays a cash advance to a consumer in return for a repayment
25mechanism and a fee, finance charge or other consideration.

26"Person." An individual, corporation, business trust,
27estate, trust, partnership, limited liability company,
28association, joint venture or any other legal or commercial
29entity. The term does not include a public corporation,
30government or governmental subdivision, agency or

1instrumentality.

2"Program." A program or strategy in which a provider
3furnishes debt settlement services.

4"Provider." A person required to be licensed under this act
5and that provides, offers to provide or agrees to provide debt
6settlement services.

7"Record." Information that is inscribed on a tangible medium
8or that is stored in an electronic or other medium and is
9retrievable in perceivable form.

10"Secretary." The Secretary of Banking <-and Securities of the
11Commonwealth.

12Section 103. Nonapplicability.

13This act does not apply to the following persons or their
14employees when the person or the employee is engaged in the
15regular course of the person's business or profession:

16(1) A judicial officer, a person acting under an order
17of a court or an administrative agency or an assignee for the
18benefit of creditors.

19(2) A bank, bank holding company or the subsidiary,
20agent or affiliate of either, or a credit union or other
21financial institution licensed under Federal or State law.

22(3) A title insurer, escrow company or other person that
23provides bill-paying services if the provision of debt
24settlement services is incidental to the bill-paying
25services.

26CHAPTER 3

27LICENSURE

28Section 301. Requirements.

29(a) General rule.--Except as provided under subsection (b)
30and on or after the effective date of this section, a provider

1may not provide debt settlement services to an individual who it
2reasonably should know resides in this Commonwealth at the time
3it agrees to provide the services, unless the provider is
4licensed under this act.

5(b) Nonapplicability.--If a provider is licensed under this
6act, subsection (a) shall not apply to an employee or agent of
7the provider.

8(c) Listing.--The department shall maintain and publicize a
9list of the names of all licensed providers.

10Section 302. Application and required documentation.

11(a) Form.--An application for licensure as a provider must
12be in a form prescribed by the department.

13(b) Fee and documentation.--An application for licensure as
14a provider must be accompanied by:

15(1) A licensing fee established by the department.

16(2) One of the following:

17(i) Evidence of minimum insurance in an amount of
18$25,000.

19(ii) A surety bond filed with the department, in a
20form approved by the department, for a term no less than
21the expiration of the license and in the amount of
22$25,000. The surety bond must run to the Commonwealth for
23the benefit of the Commonwealth and of an individual who
24resides in this Commonwealth that agrees to receive debt
25settlement services from the provider. Payment of surety
26bond must be conditioned upon noncompliance of the
27provider or its agent with this act.

28(3) Proof that the provider is authorized by the laws of
29this Commonwealth to conduct business in this Commonwealth.

30Section 303. Required information for application.

1An application for a license under this act shall be
2submitted to the department in the form required by the
3department and shall include the following:

4(1) The applicant's name, address, telephone number,
5electronic mail address and Internet website.

6(2) The address of each location in this Commonwealth
7where the applicant will provide debt settlement services.

8(3) The name and address of each owner, officer,
9director or principal of the applicant.

10(4) The name and address of the applicant's agent for
11service of process in this Commonwealth.

12(5) A description of the ownership interest of an
13officer, director, agent or employee of the applicant in an
14affiliate or subsidiary of the applicant or in another
15business entity that will provide any service to the
16applicant or to a consumer relating to the applicant's
17provision of debt settlement services.

18(6) A list of other states in which the applicant is
19licensed or registered for the provision of debt settlement
20services, including a relevant license or registration number
21and information regarding whether a license or registration
22in another state has ever been suspended or revoked.

23(7) A copy of a liability or fidelity insurance policy
24that insures against dishonesty, fraud, theft or other
25malfeasance on the part of the applicant's employees,
26officers, directors or principals.

27(8) A copy of the applicant's standard debt settlement
28services agreement.

29(9) A penal bond meeting the requirements of section
30305.

<-1(10) Except as provided under section 304, a
2nonrefundable fee of $2,000.

3(11) <-(10) Any other reasonable requests for information
4that the department determines to be necessary to its review
5of a license application.

6Section 304. Not-for-profit license fees.

7Notwithstanding any other provision of this act, a domestic
8or foreign not-for-profit corporation or association registered
9under 15 Pa.C.S. Pt. II Subpt. C (relating to nonprofit
10corporations) with the Secretary of the Commonwealth which has
11annual gross revenues from debt settlement services fees and
12charges of less than $3,000,000 annually shall pay an initial
13license fee of $500 and an annual renewal fee of $350.

14Section 305. Penal bond.

15(a) Issuance.--

16(1) The department shall issue a license under this act
17if, prior to the issuance of the license, the applicant
18obtains and maintains a bond that meets all of the following:

19(i) Is from a surety company authorized to do
20business in this Commonwealth.

21(ii) Is in an amount equal to $25,000.

22(iii) The licensee will hold directly or in trust.

23(iv) Is in a form acceptable to the department.

24(2) The bond shall meet all of the following:

25(i) Be a penal bond conditioned on compliance with
26this act and subject to forfeiture by the department.

27(ii) Run to the Commonwealth for its use.

28(iii) Be for the use of a person against the
29licensee for the benefit of a consumer who is injured by
30a violation of this act or regulation promulgated under

1this act.

2(iv) Contains a cancellation provision as provided
3under subsection (d).

4(b) Right of aggrieved person.--

5(1) If a person is aggrieved, the person may do one of
6the following:

7(i) With the written consent of the department,
8recover fees and costs from a bond by filing a claim with
9the surety company or maintaining an action on the bond.

10(ii) Recover fees and costs by filing a formal
11complaint against the licensee with the department which
12shall adjudicate the matter. The adjudication shall be
13binding upon the surety company and enforceable by the
14department in Commonwealth Court and by an aggrieved
15person in any court.

16(2) An aggrieved person seeking to recover from a bond
17that has already been forfeited by the department or which
18the department is in the process of forfeiting may recover
19payment on the bond if, after filing a petition with the
20department, the department consents to the aggrieved person's
21requested payment or portion of the payment. The department
22may pay the aggrieved person from the bond proceeds it
23recovers.

24(c) Additional relief.--

25(1) Nothing under this section shall be construed to
26limit the ability of a court or magisterial district judge to
27award to an aggrieved person other damages, court costs and
28attorney fees, except that claims that are not fees or
29related costs may not be recovered from the bond.

30(2) The department may consent to or order pro rata or

1other recovery on the bond for an aggrieved person if claims
2against the bond may or shall exceed its full monetary
3amount.

4(d) Cancellation of bonds.--A bond shall contain a provision
5that it may not be canceled for cause unless notice of intention
6to cancel is given to the department at least 30 days before the
7day upon which cancellation takes effect. Cancellation of the
8bond shall not invalidate the bond regarding the period of time
9it was in effect.

10Section 306. Application information.

11An applicant or licensed provider must notify the department
12within 60 days after a change in the information required under
13section 302(b)(2)(i) or 303(1), (3) or (5).

14Section 307. Public availability of application information.

15Except for the addresses required under section 303(3) and
16the proprietary information required under section 303(5), the
17department shall make the information in an application for
18licensure and renewal of licensure as a provider available to
19the public.

20Section 308. Certificate of licensure.

21(a) Time for issuance.--The department shall decide whether
22to issue a license to an applicant within 60 days of receiving
23the applicant's completed application. The department may extend
24the time period for 30 days and shall notify the applicant of
25the extended time period, including a final decision date, in
26writing.

27(b) Investigation.--Upon receipt of a completed application
28the department may conduct an investigation of the applicant,
29including its owners, officers, directors, principals or agents,
30in order to decide whether to issue the license.

1(c) Appeal of denial.--If the department refuses to issue a
2license, it shall notify the applicant in writing that the
3license has been denied, including the reason for the denial and
4that the applicant has the right to appeal the denial to the
5secretary within 30 days.

6(d) Duration.--A license shall be issued for a period of one
7year on a schedule determined by the department, except that if
8a license is issued prior to the beginning of a licensing year,
9the license shall only be valid until the end of that licensing
10year, at which time it may be renewed subject to this act. If a
11license is denied, canceled, surrendered, revoked or suspended,
12no part of the license fee or license renewal fee shall be
13subject to rebate.

14(e) Contents.--The license shall be on a form determined by
15the department and shall contain the name of the licensee, the
16address at which the licensee is conducting business and a
17license number.

18(f) Display.--The license must be displayed prominently at
19the licensee's business locations.

20(g) Transfer prohibited.--

21(1) Except as provided for under this subsection, the
22license may not be transferred, assigned or pledged.

23(2) A licensee may, upon notice to the department,
24transfer up to 50% of the securities of a licensee to another
25entity without affecting the validity of a license granted
26under this act.

27(h) Conditional licenses.--The department may impose
28conditions on the issuance of a license under this act. If the
29department determines that conditions imposed upon a license
30have not been fulfilled, the department may take action

1authorized under this act against the licensee. For applicants,
2the department may issue licenses effective immediately upon
3receipt of an application, which shall be conditional licenses
4issued under this subsection.

5(i) Transitional license.--

6(1) A person that is providing debt settlement services
7before the effective date of this section and that seeks to
8continue providing the services after the effective date of
9this section shall submit an application for a license under
10this act <-not less than ten days prior to within ten days of
11the effective date of this section. The applicant may
12continue to provide debt settlement services, according to
13this act, while the department processes the application for
14licensure.

15(2) A person providing debt settlement services before
16the effective date of this section who does not submit an
17application for a license within ten days of the effective
18date of this section must cease operations until it has met
19the conditions for licensure under this act.

20Section 309. Renewal of license.

21(a) Procedure.--An application for renewal of a license
22shall be submitted to the department in the manner determined by
23the department. The application for renewal shall be accompanied
24by a fee of $1,250.

25(b) Required condition.--The department shall determine the
26information and documentation that shall be provided in the
27application for renewal of a license in a manner sufficient to
28establish that the licensee will continue to conduct its
29business in accordance with this act.

30Section 310. Grounds for denial.

1(a) Reasons.--The department may deny, suspend, revoke or
2refuse to renew a license if the applicant or one of its owners,
3officers, directors, principals or agents did any of the
4following:

5(1) Made a material misstatement in the license
6application or a submission required under this act or by the
7department.

8(2) Failed to comply with or violated a provision of
9this act or a regulation, order or statement of policy issued
10by the department under this act.

11(3) Engaged in unfair or unethical conduct in connection
12with the debt settlement services business in this
13Commonwealth.

14(4) Does not possess the financial responsibility,
15character, reputation, integrity and general fitness
16sufficient to warrant the belief that the debt settlement
17services business will be conducted lawfully, honestly and in
18the public interest.

19(5) Has been convicted of or pleaded guilty or nolo
20contendere to a crime of moral turpitude or to an offense
21graded as a felony.

22(6) Is currently enjoined by a court of competent
23jurisdiction from engaging in the business of debt settlement
24services in this Commonwealth.

25(7) Has had a license issued by the department denied,
26not renewed, suspended or revoked.

27(8) Has become the subject of a United States Postal
28Service fraud order.

29(9) Has an outstanding debt to the Commonwealth or a
30Commonwealth agency.

1(10) Has failed to maintain the bond required under
2section 305.

3(11) Becomes insolvent.

4(b) Definitions.--As used in this section the following
5words and phrases shall have the meanings given to them in this
6subsection:

7"Insolvent." As follows:

8(1) The liabilities of the applicant or licensee exceed
9the assets of the applicant or licensee.

10(2) The applicant or licensee cannot meet the
11obligations of the applicant or licensee as they mature or is
12in a financial condition that the applicant or licensee
13cannot continue in business in a safe manner to the customers
14of the applicant or licensee.

15Section 311. <-Payday loans.

16The department shall deny a license under this act to an
17applicant that offers payday loans at the same location for
18which the applicant seeks a license under this act. <-(Reserved).

19Section 312. Reinstatement.

20The department may reinstate a license that was previously
21suspended, revoked or denied renewal, if all of the following
22exist:

23(1) A condition that warranted the original action has
24been corrected to the department's satisfaction.

25(2) The department has reason to believe that the
26condition is not likely to occur again.

27(3) The licensee satisfies all other requirements of
28this act.

29Section 313. Limitations.

30(a) Name or address.--A licensee may not conduct business

1under this act under a name or at an address different from that
2contained on the licensee's license. If a licensee changes its
3name or its business address, it shall notify the department
4within ten days of the change and the department shall issue a
5new license specifying the licensee's new name or address.

6(b) Other businesses.--A licensee may not conduct a business
7other than the debt settlement service business licensed by the
8department under this act unless it notifies the department in
9writing at least 30 days before beginning to conduct that
10business.

11CHAPTER 5

12PROVIDER RESPONSIBILITIES

13Section 501. Good faith.

14A provider must act in good faith in all matters under this
15act.

16Section 502. Prerequisites for providing debt settlement
17services.

18(a) Disclosure.--Before an individual consents to pay for
19goods or services offered by a provider, the provider must
20disclose truthfully, in a clear and conspicuous manner, the
21following material information:

22(1) All of the following:

23(i) The amount of time necessary to achieve the
24represented results.

25(ii) The extent to which the debt settlement
26services may include a settlement offer to any of the
27individual's creditors or debt collectors, including<-:

28(A) The time by which the provider will make a
29bona fide settlement offer to each of the
30individual's creditors or debt collectors.

1(B) The cost to the individual for providing
2debt settlement services.

<-3the time by which the provider will make a bona fide
4settlement offer to each of the individual's creditors or
5debt collectors.

6(iii) The cost to the individual for providing debt
7settlement services.

8(2) If the debt settlement service includes a settlement
9offer to any of the individual's creditors or debt
10collectors, the amount of money or the percentage of each
11outstanding debt that the individual shall accumulate before
12the provider will make a bona fide settlement offer to each
13of them.

14(3) If an aspect of the debt settlement services relies
15upon or results in the individual's failure to make timely
16payments to creditors or debt collectors, that the use of the
17debt settlement services will likely adversely affect the
18individual's creditworthiness, may result in the individual
19being subject to collection actions or sued by creditors or
20debt collectors and may increase the amount of money the
21individual owes due to the accrual of fees and interest.

22(4) If the provider requests or requires the individual
23to place funds in an account at a bank, that the individual
24owns the funds held in the account, the individual may
25withdraw from the debt settlement services at any time
26without penalty and, if the individual withdraws, that the
27individual shall receive all funds in the account, other than
28funds earned by the provider, within seven business days of
29the individual's request.

30(b) Prohibition.--A provider may not misrepresent, directly

1or by implication, any material aspect of any debt settlement
2services, including:

3(1) The amount of money or the percentage of the debt
4amount that an individual may save by using the service.

5(2) The amount of time necessary to achieve the
6represented result.

7(3) The amount of money or the percentage of each
8outstanding debt that the individual shall accumulate before
9the provider will initiate attempts with the individual's
10creditors or debt collectors or make a bona fide offer to
11negotiate, settle or modify the terms of the individual's
12debt.

13(4) The effect of the service on the individual's
14creditworthiness.

15(5) The effect of the service on collection efforts of
16the individual's creditors or debt collectors.

17(6) The percentage or number of individuals who attain
18the represented results.

19(7) Whether debt settlement services are offered or
20provided by a nonprofit entity.

21(c) Payment or consideration.--A provider may not receive
22payment of a fee or consideration for debt settlement services
23unless:

24(1) The provider has renegotiated, settled, reduced or
25otherwise altered the terms of at least one debt under a debt
26settlement plan.

27(2) The individual has made at least one payment under
28the debt settlement plan.

29(3) The fee or consideration for settling each
30individual debt enrolled in a debt settlement plan meets one

1of the following:

2(i) Bears the same proportional relationship to the
3total fee for settling the entire debt balance as the
4individual <-renegotiated, settled, reduced or otherwise 
5altered debt amount bears to the entire debt amount. For
6purposes of this subparagraph, the individual debt amount
7and the entire debt amount shall be amounts owed at the
8time the debt was enrolled in the debt settlement
9service.

10(ii) Is a percentage of the amount saved as a result
11of the settlement. The percentage charged may not change
12from one individual <-renegotiated, settled, reduced or 
13otherwise altered debt to another. For purposes of this
14subparagraph, the amount saved shall be the difference
15between the amount owed at the time the debt was enrolled
16in the debt settlement service and the amount actually
17paid to satisfy the debt.

18(d) Construction.--Nothing under this section shall prohibit
19requesting or requiring the individual to place funds in an
20account to be used for the provider's fees for payments to
21creditors or debt collectors in connection with the
22renegotiation, settlement, reduction or other alteration of the
23terms of payment or other terms of debt, if:

24(1) The funds are held in an account at a bank.

25(2) The individual owns the funds held in the account
26and is paid any accrued interest on the account, if any is
27earned.

28(3) If the provider does not administer the account, the
29entity administering the account is not owned, controlled by
30or affiliated with the provider.

1(4) The entity administering the account does not give
2or accept any money or other compensation in exchange for
3referrals of business by the provider.

4(5) The individual may withdraw from the debt settlement
5services at any time without penalty and shall receive all
6funds in the account, other than funds earned by the provider
7in compliance with this section, within seven days of the
8individual's request.

9(e) Nonlicensed provider.--If a provider is not licensed as
10required under this act when an individual assents to an
11agreement, the agreement shall be voidable by the individual.

12CHAPTER 7

13ADMINISTRATION AND ENFORCEMENT

14Section 701. Powers and duties.

15The department shall have the authority to:

16(1) As follows:

17(i) Examine an instrument, document, account, book,
18record or file of a licensee or a person having a
19connection to the licensee or make other investigations
20as may be necessary to administer this act. The
21examination may include documents, accounts, books or
22records that relate to the operation of the licensee that
23are in the possession of an affiliate, subsidiary or
24other business entity.

25(ii) Under the authority of this paragraph, the
26department may remove an instrument, document, account,
27book, record or file of a licensee or person to a
28location outside of the licensee's or person's office
29location.

30(iii) The examination may be conducted without prior

1notice to the licensee or person and the costs of the
2examination shall be paid by the licensee or person
3subject to the examination.

4(2) Conduct administrative hearings on a matter
5pertaining to this act and issue subpoenas to compel the
6attendance of witnesses or the production of documents,
7accounts, books or records at a hearing. A document, account,
8book or record subject to subpoena may be retained by the
9department until the proceeding in connection with which it
10was subpoenaed is completed. A department official may
11administer oaths or affirmations to a person whose testimony
12is required.

13(3) Request and receive information or records,
14including reports of criminal history record information,
15from a Federal, State, local or foreign government entity
16regarding an applicant, a licensee or a person related to the
17business of debt settlement services. The cost associated
18with the request shall be paid by the applicant or licensee.

19(4) Promulgate regulations or issue statements of policy
20or orders to ensure the proper administration or enforcement
21of this act and the proper conduct of licensees under this
22act.

23(5) Prohibit a person or licensee that violates this act
24from working in a capacity related to activities regulated by
25the department.

26(6) Order a person or licensee to make restitution for
27actual damages to consumers caused by a violation of this act
28or to refund fees collected in violation of this act.

29(7) Issue a cease and desist order that takes effect
30immediately and is subject to a hearing within 14 days of the

1issuance of the order.

2(8) Impose other conditions or take other actions as the
3department deems appropriate to administer or enforce this
4act.

5(9) Provide the following on its Internet website:

6(i) Information for licensees on the provisions of
7this act.

8(ii) Information for consumers regarding the
9protections of this act.

10(iii) Information on filing consumer complaints,
11including a toll-free telephone number.

12(iv) A list of current licensees.

13Section 702. Administrative proceedings.

14(a) Hearings.--A person aggrieved by a decision of the
15department may appeal the decision to the secretary. The appeal
16shall be conducted under 2 Pa.C.S. Ch. 5 Subch. A (relating to
17practice and procedure of Commonwealth agencies).

18(b) Injunctions.--The department may maintain an action for
19an injunction or other process against a person to restrain or
20prevent the person from violating this act.

21(c) Final orders.--

22(1) A decision of the secretary shall be a final order
23of the department and shall be enforceable in a court of
24competent jurisdiction.

25(2) The department may publish final adjudications
26issued under this section, subject to redaction or
27modification to preserve confidentiality.

28(d) Appeals.--A person aggrieved by a decision of the
29secretary may appeal the decision under 2 Pa.C.S. Ch. 7 Subch. A
30(relating to judicial review of Commonwealth agency action).

1Section 703. Reports to department.

2(a) Annual report.--A licensee shall file an annual report
3with the department on a date determined by the department
4setting forth information as the department shall require
5concerning the debt settlement services business conducted by
6the licensee during the preceding calendar year. The report
7shall be on a form provided by the department.

8(b) Report of enforcement action.--A licensee shall report
9to the department a final, nonappealable order finding a
10licensee guilty or liable in any enforcement action taken
11against the licensee by any Federal or State agency. The report
12must be filed no later than seven days after the licensee is
13made aware of the final order. The licensee shall provide
14updates to the department as to the status of an enforcement
15action as required by the department.

16(c) Penalty.--A licensee who fails to file an annual report
17with the department as required under subsection (a) may be
18subject to a penalty of $100 for each day after the date that
19the annual report was required to be filed.

20Section 704. Violations.

21(a) Imposition.--The department may impose a civil penalty
22of up to $10,000 for each violation of this act.

23(b) Unfair trade practices.--A person who is in violation of
24this act shall be in violation of the act of December 17, 1968
25(P.L.1224, No.387), known as the Unfair Trade Practices and
26Consumer Protection Law.

27Section 705. Banking Fund.

28A fee or penalty collected by the department under this act
29shall be deposited into the Banking Fund.

30CHAPTER 21

1MISCELLANEOUS PROVISIONS

2Section 2101. Relation to Electronic Signatures in Global and
3National Commerce Act.

4This act modifies, limits and supersedes the Electronic
5Signatures in Global and National Commerce Act (Public Law 106-
6229, 15 U.S.C. § 7001 et seq.), but does not modify, limit or
7supersede section 101(c) of the Electronic Signatures in Global
8and National Commerce Act or authorize electronic delivery of
9any of the notices described in section 103(b) of the Electronic
10Signatures in Global and National Commerce Act.

11Section 2102. Transitional provisions.

12Transactions entered into before the effective date of this
13section and the rights, duties and interests resulting from the
14transactions may be completed, terminated or enforced as
15required or permitted by a law repealed or modified under this
16act as though the repeal or modification had not occurred.

17Section 2103. Repeal.

18(a) Intent.--The General Assembly declares that the repeal
19under subsection (b) is necessary to effectuate the purposes of
20this act.

21(b) Provision.--The act of October 9, 2008 (P.L.1421,
22No.117), known as the Debt Management Services Act, is repealed
23insofar as it applies to debt settlement services.

24Section 2104. Effective date.

25This act shall take effect in 60 days.