{"data":{"id":"us-ky/krs-380.100","jurisdiction":"us-ky","citation":"KRS 380.100","heading":"Agreement for debt adjusting -- Contents -- Right to confer power of","body":"attorney upon debt adjuster -- Prohibited provisions.\n(1) An agreement for debt adjusting shall:\n(a) Be in writing;\n(b) Be dated and signed by the debt adjuster and the debtor;\n(c) Include the name of the debtor and the address where the debtor resides;\n(d) Include the name, business address, and telephone number of the debt\nadjuster;\n(e) Be delivered to the debtor immediately upon formation of the agreement.\nDelivery of an electronic record occurs when the agreement is made available\nin a format in which the debtor may retrieve, save, and print the agreement\nand the debtor is notified that the electronic record is available;\n(f) Disclose:\n1. The services to be provided;\n2. The amount,  or method of determining the amount, of all fees,\nindividually itemized, to be paid by the debtor;\n3. The schedule of payments to be made by or on behalf of the debtor,\nincluding the amount of each payment, the date on which each payment\nis due, and an estimate of the date of the final payment;\n4. Whether a plan provides for regular periodic payments to creditors and,\nif a plan provides for regular periodic payments to creditors:\na. Each creditor of the debtor to which payment will be made, the\namount owed  to each creditor, and any concessions the debt\nadjuster reasonably believes each creditor will offer; and\nb. The schedule of expected payments to each creditor, including the\namount of each payment and the date on which it will be made;\n5. Each creditor that the debt adjuster believes will not participate in the\nplan and to which the debt adjuster will not direct payment;\n6. That the debt adjuster may terminate the agreement for good cause, upon\nreturn of unexpended money of the debtor;\n7. That the debtor may cancel the agreement as provided in KRS 380.060;\n8. That the debtor may contact the Attorney General with any questions or\ncomplaints regarding the debt adjuster;\n9. The address, telephone number, and Internet address or Web site of the\nAttorney General;\n10. That participation in a plan may not prevent litigation, garnishment,\nattachment, repossession, foreclosure, eviction, or loss of employment,\nand may not stop efforts to collect a debt from the debtor;\n11. That failure to make require d minimum payments to creditors may be\nbreaking the terms of agreements with creditors, may lead creditors to\nincrease finance charges and pursue litigation, may be reported to\nconsumer reporting agencies, and may have an adverse effect on the\ndebtor's credit report and credit score;\n12. The earliest date by which the debt adjuster will contact each creditor to\nattempt to adjust the debtor's debts or, for settlement of unsecured debts,\nthe estimated amount of money that shall be accumulated in savings\nbefore negotiations may begin; and\n13. That fees paid to a debt adjuster will not be used to pay creditors;\n(g) Provide that the debtor has a right to terminate the agreement at any time,\nwithout penalty or obligation, by giving the debt adjuster written or ele ctronic\nnotice, in which event:\n1. The debt adjuster will refund all unexpended money that the debt\nadjuster or its agent has received from or on behalf of the debtor for the\nreduction or satisfaction of the individual's debt; and\n2. All powers of attorney  granted by the debtor to the debt adjuster are\nrevoked and ineffective;\n(h) Provide that the debtor authorizes any financial institution in which the debt\nadjuster or its agent has established a trust account to disclose to the Attorney\nGeneral any financial records relating to the trust account; and\n(i) Provide that the debt adjuster will notify the debtor within five (5) days after\nlearning of a creditor's decision to reject or withdraw from a plan. This notice\nshall include:\n1. The identity of the creditor; and\n2. The right of the debtor to modify or terminate the agreement.\n(2) An agreement may confer on a debt adjuster a power of attorney to negotiate with\ncreditors of the debtor on behalf of the debtor and to settle the debtor's debt if the\namount the debtor will owe after settlement is less than fifty percent (50%) of the\namount of the debt prior to settlement. An agreement shall not confer a power of\nattorney to settle the debtor's debt if the amount the debtor will owe after settlement\nis equal to o r more than fifty percent (50%) of the amount of the debt prior to\nsettlement. An agreement shall provide that the debt adjuster shall obtain the assent\nof the debtor prior to settling a debt if the creditor has assented to a settlement for\nwhich the amount the debtor will owe after settlement is equal to or more than fifty\npercent (50%) of the amount of the debt prior to settlement. However, in no event\nshall an agreement confer on a debt adjuster a power of attorney to negotiate or\nsettle any of the debtor's debt that is primarily for personal, family, or household use\nthat is secured by a mortgage, deed of trust, other equivalent consensual security\ninterest on residential real property, or collateral that has a mortgage lien interest in\nresidential real property.\n(3) An agreement shall not:\n(a) Provide for application of the law of any jurisdiction other than the United\nStates and this state;\n(b) Contain a provision that restricts the debtor's remedies under this chapter or\nunder any other law; or\n(c) Contain a provision that:\n1. Limits or releases the liability of any person for not performing the\nagreement or for violating this chapter; or\n2. Indemnifies any person for liability arising under the agreement or this\nchapter.\n(4) All rights and obligations specified in paragraphs (g), (h), and (i) of subsection (1)\nof this section, subsection (2) of this section, subsection (3) of this section, and\nKRS 380.060, exist even if not provided in the agreement.\n(5) A provision in an agreement which violates paragr aphs (g), (h), and (i) of\nsubsection (1) of this section, subsection (2) of this section, or subsection (3) of this\nsection is void.","path":["KRS Chapter 380"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35387","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:09Z","sha256":"4e25ec1905e687aba3ee94ccb9b155b4069317880341d01da4d37a0ceb71d450","source_id":"us-ky","stale":false,"prev":"us-ky/krs-380.090","next":"us-ky/krs-380.110"},"notice":"GroundRules: Original legal text. Not legal advice."}