An Act relative to the licensing and supervision of debt management services in the Commonwealth

This bill establishes a new regulatory framework in Massachusetts to license and supervise companies that provide debt management services. It defines these services as arrangements where a company receives money from individuals to distribute to their creditors or to negotiate changes to debt terms. Under the new rules, any business offering these services for compensation must obtain a license from the Division of Banks and maintain a separate trust account for consumer funds. The legislation also prohibits licensed providers from practicing law and requires them to refer clients needing legal advice to qualified attorneys. Additionally, the bill mandates that providers prepare specific accounting statements for consumers to ensure transparency in how funds are handled.