CHAPTER 323

AN ACT TO PROHIBIT DEBT ADJUSTING FOR PROFIT.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Chapter 3, Title 11, Delaware Code, is amended by adding a new Subchapter LVII to read as follows:

SUBCHAPTER LVII. DEBT ADJUSTING

§ 881. Debt Adjusting

(a) For the purpose of this section, "debt adjusting" means the making of a contract, express or implied, with a particular debtor whereby the debtor agrees to pay a certain amount of money periodically to the person engaged in the debt adjusting business who shall for a consideration distribute the same among certain specified creditors in accordance with a plan agreed upon.

(b) Whoever engages in the business of debt adjusting shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $500, or be imprisoned not more than 6 months, or both. The Superior Court shall have exclusive jurisdiction of offenses under this section.

(c) The provisions of this section shall not apply to those situations involving debt adjusting incurred incidentally in the lawful practice of law in this state nor shall anything in this subchapter be construed to apply to any non-profit or charitable corporation or association which engages in debt-adjusting even though the non-profit corporation or association may charge and collect nominal sums as reimbursement for expenses in connection with such services.

Approved May 5, 1966