RD687 - Report Pursuant to Chapter 785 of the 2020 Virginia Acts of Assembly Relating to Debt Settlement Services Providers – December 1, 2023

Executive Summary:

Chapter 785 of the 2020 Virginia Acts of Assembly ("the Act") created Chapter 20.1 (§ 6.2-2026 et seq.) of Title 6.2 of the Code of Virginia ("Code") (the "Chapter"), which became effective July 1, 2021. The Chapter sets forth licensing requirements and other regulatory provisions relating to debt settlement services providers. This Report was prepared pursuant to the third enactment clause of the above-referenced legislation, which directs the State Corporation Commission ("Commission") to monitor settlements by all licensees and provide a report to Chairs of the House Committee on Labor and Commerce(*1) and the Senate Committee on Commerce and Labor by December 1 of each year 2023, 2024, 2025, that contains the following:

i. the number of settlements made pursuant to the Act;

ii. the fees charged pursuant to § 6.2-2041 of the Code, as created by the Act; and

iii. the principal amount to be paid by the consumer to satisfy the debt.

On behalf of the Commission, its Bureau of Financial Institutions ("Bureau") is pleased to submit this Report with the above information pertaining to debt settlement services providers licensed under the Chapter. The information provided is for the period from July 1, 2021, through December 31, 2022.
(*1) Committee name is now Commerce and Energy