50-1122. Same; registrant's duties regarding certain funds paid to registrant. - Kansas Statutes

50-1122

Chapter 50.--UNFAIR TRADE AND CONSUMER PROTECTION Article 11.--CREDIT SERVICES ORGANIZATIONS

      50-1122.   Same; registrant's duties regarding certainfunds paid to registrant.(a) Within four calendar days after receipt of any fundspaid to the registrant by or on behalf of a consumer for disbursement to suchconsumer's creditors, a registrantshall deposit such funds in a trust account established for the benefit ofconsumers.

      (b)   A registrant shall:

      (1)   Maintain separate records of account for each consumer to whom theregistrant providesdebt management services;

      (2)   disburse any funds paid by or on behalf of a consumer to such consumer'screditorswithin 10 calendar days after receipt of such funds;

      (3)   correct any misdirected payments resulting from an error by theregistrant;

      (4)   reimburse the consumer for any actual fees or other charges imposed by acreditor as a resultof the misdirection; and

      (5)   disburse a consumer's funds from the trust account only to suchconsumer's creditors orback to the consumer.

      (c)   Ifa consumer rescinds the debt management services agreement, all funds held inthe trust accounton behalf of such consumer shall be refunded to the consumer within 10 calendardays from receipt ofrescission by the registrant.

      (d)   A registrant shall not commingle anytrust account established for thebenefit of consumers with any operating accounts of the registrant or itsrelated interests.

      History:   L. 2004, ch. 22, § 7; July 1.