Office of the Attorney General
Attorney General Conway Announces Updated Debt Adjuster Regulations Effective November 5
Kentucky Attorney General Jack Conway announced that new regulations went into effect today for the registration of debt adjusters. The regulation completes implementation of HB 166 (2010 Regular Session), which added several new protections for consumers entering into debt-adjusting contracts.
"The updated regulation and new forms will help to ensure that debt adjusters operating in the Commonwealth are complying with Kentucky's laws," General Conway said.
Although HB 166 went into effect July15, the General Assembly required in the bill that the Attorney General issue regulations to amend the registration process. The proposed amendments to the regulation were filed in June, so that the debt adjuster registration process and forms would incorporate the changes to the debt adjuster laws made by HB 166.
"For instance," said General Conway, "debt adjusters must have certain types of insurance and must post a surety bond or irrevocable letter of credit. The amounts of insurance and bond coverage go up if the adjuster is dealing with debts secured by a mortgage on a consumer's residence. The regulation requires that insurance and bond information be provided when a debt adjuster registers with the Office of Consumer Protection."
Using the normal regulation approval process, the proposed changes to the regulation were published in the Kentucky Administrative Register on July 1 and comments were accepted through August 2. The amendments went before the Legislature's Administrative Regulation Review Subcommittee on September 14 and were then referred on October 6 to the Legislature's Interim Joint Committee on Banking and Insurance. As provided by law, the updated regulation and new forms went into effect on November 5, 30 days after the referral to the second committee.
More information about the regulation, forms, and Kentucky's debt adjusting laws is available at the Attorney General's debt adjusting web page. The following links will also provide Kentucky consumers with other important information about debt adjusters and general credit information: