Cal. Code Regs. Tit. 10, § 1001 - Definitions - Debt Settlement Services

With respect to debt settlement services, these terms shall have the following meanings:

(a) "Charges" mean all amounts contracted for or received by a person in connection with the person's provision of debt settlement services to a consumer.
(b) "Debt settlement services" means any of the following:
(1) Providing advice, or offering to act or acting as an intermediary, including, but not limited to, offering debt negotiation, debt reduction, or debt relief services between a consumer and one or more of the consumer's creditors in connection with a consumer's non-mortgage debt, if the primary purpose of that advice or action is to obtain a settlement for less than the full amount of the debt, or a reduction in the interest rate or payment amount associated with a consumer's debts; or
(2) Advising, encouraging, assisting, or counseling a consumer to accumulate funds in an account for future payment of a reduced amount of debt to one or more of the consumer's creditors.

Notes

Cal. Code Regs. Tit. 10, § 1001

Note: Authority cited: Section 90009, Financial Code. Reference: Sections 90003, 90005 and 90009, Financial Code.

1. New section filed 10-11-2024; operative 2/15/2025 (Register 2024, No. 41).

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