Mississippi Amends its Debt Management Services Act

Mississippi recently amended its Debt Management Services Act to exclude certain for-profit debt management service providers from the definition of “debt management service provider.”  The bill becomes effective on July 1, 2018.

Once effective, the definition of “debt management service provider” will no longer include a for-profit management service provider who does not receive or hold consumer funds, who does not receive a fee until a settlement is approved by the consumer and who is regulated by the Federal Trade Commission.

Due to the exclusion from the definition of “debt management service provider,” these for-profit debt management service providers, among other things, will no longer be required to be licensed under the Debt Management Services Act.

The entire Mississippi House Bill 792 can be found here.