State Disclosures

CCCSMD is a trademark of Consumer Credit Counseling Service of Maryland and Delaware, Inc. and is licensed or otherwise permitted to provide counseling and debt management services in the following states. Certain information and disclosures are provided below in accordance with applicable state laws and regulations:

Disclosures

Michigan Residents:

Licensed in Michigan #0014789. You may contact the State of Michigan Department of Insurance and Financial Services at 530 W. Allegan Street, 7th Floor, Lansing, MI 48933; phone 517.281.8800 or 877.999.6642 (Toll Free).

_{When a licensee establishes a debt management plan for a debtor, the  licensee may charge and receive an initial fee of $50.00. A contract between a licensee and debtor shall include all of the following: (a) Each creditor to whom payments will be made and the amount owed each creditor.  A licensee may rely on records of the debtor and other information available to it to determine the amount owed to a creditor.  (b) The total amount of the licensee’s charges. (c) The beginning and termination dates of the contract. (d)  The principal amount and approximate interest charges of the debtor’s obligations to be paid under the debt management plan.  (e) The name and address of the licensee and of the debtor. (f) Other provisions or disclosures that the director determines are necessary for the protection of the debtor and the proper conduct of business by a licensee.  Further, (1) in addition to the initial fee described above, a licensee may charge a reasonable fee for providing debt management services under a debt management plan. The fee under this subsection shall not exceed 15% of the amount of the debt to be liquidated during the express term of the plan. (2) A licensee may offer a debtor the option to purchase credit reports or educational materials and products, and charge a fee to the debtor if the debtor elects to purchase any of those items from the licensee. Fees charged under this subsection are not subject to the 15% limitation on fees described herein. (3) Except for a cancellation described in (4) below, in the event of cancellation of or default in the performance of the contract by the debtor before its successful completion, a licensee may collect $25.00 in addition to any fees and charges of the licensee previously received by the licensee. This $25.00 fee is not subject to the 15% limitation on fees and charges described in (1) above. (4) A contract is in effect when it is signed by the licensee and the debtor and the debtor has made a payment of any amount to the licensee. The debtor has the right to cancel the contract until 12 midnight of the third business day after the first day the contract is in effect by delivering written notice of cancellation to the licensee. A cancellation described in this section is not subject to, and a licensee shall not collect, the cancellation fee described in (3). (5) If a debtor fails to make a payment of any amount to a licensee within 60 days after the date a payment is due under a contract, the licensee may, in its discretion, cancel the debt management contract if it determines that the plan is no longer suitable for the debtor, the debtor fails to affirmatively communicate to the licensee the debtor’s desire to continue the plan, or the creditors of the debtor refuse to continue accepting payments under the plan. (6) A licensee shall not contract for, receive, or charge a debtor an amount greater than authorized by this act. A person that violates this subsection, except as the result of an inadvertent clerical or computer error, shall return to the debtor the amount of the payments received from or on behalf of the debtor and not distributed to creditors, and, as a penalty, an amount equal to the amount overcharged.
(7) A licensee shall attempt to obtain consent to participate in a debt management plan from at least 51%, in number or dollar amount, of the debtor’s creditors within 90 days after establishing the debt management plan. If the required consent is not actually received by the licensee, the licensee shall provide notice to the debtor of the lack of required consent and the debtor may, at its option, close the account. If the debtor decides to close the account, any unexpended funds shall be returned to the debtor or disbursed as directed by the debtor.}