30-14-2013: Prohibited practices.

(1) A credit counseling service may not:

(a) purchase any debt or obligation of a consumer;

(b) lend money or provide credit to a consumer;

(c) obtain a mortgage or other security interest in any property of a consumer;

(d) operate as a collection agency;

(e) structure a debt management plan in a way that at the debt management plan's conclusion any debts of the consumer that are subject to the debt management plan are not fully amortized;

(f) charge for or provide credit insurance;

(g) cause or attempt to cause a consumer to waive or forego any right or benefit that the consumer has under the provisions of this part; or

(h) operate in this state without a license.

(2) (a) A credit counseling service may not advertise its services in any manner in this state without first being licensed by the department.

(b) A credit counseling service or any person on a credit counseling service's behalf may not misrepresent any material fact or make a false promise intended to induce a consumer into entering a debt management plan.