{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/6.2-2014.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/6.2-2014.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/6.2-2014.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/6.2-2014.html"}],"law_id":374053,"edition_id":2,"section_id":374053,"structure_id":53197,"section_number":"6.2-2014","catch_line":"Required and prohibited business methods","history":"2004, c. 790, \u00a7 6.1-363.16; 2010, c. 794.","full_text":"Each licensee shall comply with the following requirements:\n\n1\n\nEach DMP shall be evidenced by an agreement, which shall be maintained in either a hard copy, including a faxed copy, or electronic version and which shall be signed by the consumer and a person authorized by the licensee to sign such agreements and dated the same day the DMP is executed by the consumer. The agreement may be signed by the parties either originally or by electronic signature. The agreement shall set forth, at a minimum: (i) the name and address of both the consumer and the licensee; (ii) a full description of all services to be performed for the consumer by the licensee; (iii) a clear explanation, highlighted in bold type, of the costs to the consumer; (iv) a statement that the DMP agreement can be terminated for any reason by the consumer and that the consumer has no obligation to continue the arrangement unless satisfied with the services provided; (v) a statement that in the event of termination of the agreement, the consumer shall be entitled to a refund of all funds that have not been disbursed to creditors and either (a) all fees paid if terminated within five days of the date the DMP agreement is executed by the consumer or (b) all fees paid less the set-up fee if terminated more than five but less than 31 days after execution by the consumer; (vi) an explanation of the method of dispute resolution under the agreement; (vii) an explanation of the obligations of the consumer and the licensee that are subject to the agreement; (viii) notification of privacy policies in compliance with state and federal laws and regulations; and (ix) a statement that participating in a DMP may have a derogatory effect upon the consumer’s credit report;\n\n2\n\nA licensee shall give to the consumer a duplicate original of the agreement executed by the consumer and licensee upon full execution;\n\n3\n\nAt the time of execution of the DMP, a licensee shall have a good faith belief that the creditors listed in the DMP will participate in the DMP. A licensee shall advise the consumer of any changes by a creditor in accepting payments under the DMP promptly upon learning of such changes;\n\n4\n\nA licensee shall provide a consumer enrolled in a DMP with periodic statements, no less often than quarterly, accounting for the funds received from the consumer for payments to the consumer’s creditors and disbursements made to each such creditor on the consumer’s behalf since the last report;\n\n5\n\nA licensee shall not purchase any debt or obligation of a consumer;\n\n6\n\nA licensee shall not lend money or provide credit to any consumer;\n\n7\n\nA licensee shall not obtain a mortgage or any other security interest in the property of a consumer;\n\n8\n\nA licensee shall not operate as a debt collector;\n\n9\n\nA licensee shall not structure an agreement for the consumer that, at the conclusion of the DMP, would knowingly result in negative amortization of any of the consumer’s obligations to creditors;\n\n10\n\nA licensee shall not give legal advice to a consumer or perform legal services on behalf of a consumer;\n\n11\n\nA licensee shall have an established practice of disbursing to creditors funds received from a consumer under a DMP within eight business days of receipt and shall provide consumers its disbursement practices in writing, including any circumstances that would establish an exception to the eight-day practice;\n\n12\n\nA licensee shall maintain appropriate safeguards against conflicts of interest in the conduct of its DMP activities;\n\n13\n\nA licensee shall not employ any person who is employed at the same time by a creditor or collection agency;\n\n14\n\nA licensee shall keep (i) its operating funds separate from the funds entrusted to the licensee by consumers for disbursement to creditors and (ii) consumers’ funds in a trust account, held in the name of the licensee by an insured depository institution;\n\n15\n\nA licensee shall upon request give a consumer signed, dated receipts for funds received from a consumer under a DMP, or provide a means whereby the consumer may view the status of his account electronically; and\n\n16\n\nA licensee shall not obtain any agreement from a consumer (i) giving the licensee or any third person power of attorney or authority to confess judgment for the consumer; (ii) authorizing the licensee or any third party to bring suit against the consumer in a court outside the Commonwealth; or (iii) waiving any right the consumer has under this chapter.\n\n","order_by":null,"text":{"0":{"id":1396352,"text":"Each licensee shall comply with the following requirements:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":1396353,"text":"Each DMP shall be evidenced by an agreement, which shall be maintained in either a hard copy, including a faxed copy, or electronic version and which shall be signed by the consumer and a person authorized by the licensee to sign such agreements and dated the same day the DMP is executed by the consumer. The agreement may be signed by the parties either originally or by electronic signature. The agreement shall set forth, at a minimum: (i) the name and address of both the consumer and the licensee; (ii) a full description of all services to be performed for the consumer by the licensee; (iii) a clear explanation, highlighted in bold type, of the costs to the consumer; (iv) a statement that the DMP agreement can be terminated for any reason by the consumer and that the consumer has no obligation to continue the arrangement unless satisfied with the services provided; (v) a statement that in the event of termination of the agreement, the consumer shall be entitled to a refund of all funds that have not been disbursed to creditors and either (a) all fees paid if terminated within five days of the date the DMP agreement is executed by the consumer or (b) all fees paid less the set-up fee if terminated more than five but less than 31 days after execution by the consumer; (vi) an explanation of the method of dispute resolution under the agreement; (vii) an explanation of the obligations of the consumer and the licensee that are subject to the agreement; (viii) notification of privacy policies in compliance with state and federal laws and regulations; and (ix) a statement that participating in a DMP may have a derogatory effect upon the consumer’s credit report;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":1396354,"text":"A licensee shall give to the consumer a duplicate original of the agreement executed by the consumer and licensee upon full execution;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":1396355,"text":"At the time of execution of the DMP, a licensee shall have a good faith belief that the creditors listed in the DMP will participate in the DMP. A licensee shall advise the consumer of any changes by a creditor in accepting payments under the DMP promptly upon learning of such changes;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":1396356,"text":"A licensee shall provide a consumer enrolled in a DMP with periodic statements, no less often than quarterly, accounting for the funds received from the consumer for payments to the consumer’s creditors and disbursements made to each such creditor on the consumer’s behalf since the last report;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":1396357,"text":"A licensee shall not purchase any debt or obligation of a consumer;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":1396358,"text":"A licensee shall not lend money or provide credit to any consumer;","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":1396359,"text":"A licensee shall not obtain a mortgage or any other security interest in the property of a consumer;","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"8":{"id":1396360,"text":"A licensee shall not operate as a debt collector;","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"9":{"id":1396361,"text":"A licensee shall not structure an agreement for the consumer that, at the conclusion of the DMP, would knowingly result in negative amortization of any of the consumer’s obligations to creditors;","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"10":{"id":1396362,"text":"A licensee shall not give legal advice to a consumer or perform legal services on behalf of a consumer;","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"11":{"id":1396363,"text":"A licensee shall have an established practice of disbursing to creditors funds received from a consumer under a DMP within eight business days of receipt and shall provide consumers its disbursement practices in writing, including any circumstances that would establish an exception to the eight-day practice;","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"12":{"id":1396364,"text":"A licensee shall maintain appropriate safeguards against conflicts of interest in the conduct of its DMP activities;","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"13":{"id":1396365,"text":"A licensee shall not employ any person who is employed at the same time by a creditor or collection agency;","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"14":{"id":1396366,"text":"A licensee shall keep (i) its operating funds separate from the funds entrusted to the licensee by consumers for disbursement to creditors and (ii) consumers’ funds in a trust account, held in the name of the licensee by an insured depository institution;","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13","next_prefix":"15"},"15":{"id":1396367,"text":"A licensee shall upon request give a consumer signed, dated receipts for funds received from a consumer under a DMP, or provide a means whereby the consumer may view the status of his account electronically; and","type":"section","prefixes":["15"],"prefix":"15","entire_prefix":"15","prefix_anchor":"15","level":1,"prior_prefix":"14","next_prefix":"16"},"16":{"id":1396368,"text":"A licensee shall not obtain any agreement from a consumer (i) giving the licensee or any third person power of attorney or authority to confess judgment for the consumer; (ii) authorizing the licensee or any third party to bring suit against the consumer in a court outside the Commonwealth; or (iii) waiving any right the consumer has under this chapter.","type":"section","prefixes":["16"],"prefix":"16","entire_prefix":"16","prefix_anchor":"16","level":1,"prior_prefix":"15"}},"ancestry":[{"id":53197,"edition_id":2,"name":"Agencies Providing Debt Management Plans","identifier":"20","label":"chapter","depth":3,"order_by":7,"parent_id":53187,"metadata":{"child_laws":26,"child_structures":0},"date_created":"2026-08-02 03:12:45","date_modified":"2026-08-02 12:28:08","permalink":{"id":1493627,"object_type":"structure","relational_id":53197,"identifier":"20","token":"6.2\/III\/20","url":"\/6.2\/III\/20\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53187,"edition_id":2,"name":"Other Regulated Providers of Financial Services","identifier":"III","label":"subtitle","depth":2,"order_by":3,"parent_id":53152,"metadata":{"child_laws":332,"child_structures":12},"date_created":"2026-08-02 03:12:17","date_modified":"2026-08-02 12:28:07","permalink":{"id":1492723,"object_type":"structure","relational_id":53187,"identifier":"III","token":"6.2\/III","url":"\/6.2\/III\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53152,"edition_id":2,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":10,"parent_id":null,"metadata":{"child_laws":961,"child_structures":89},"date_created":"2026-08-02 03:11:41","date_modified":"2026-08-02 12:27:53","permalink":{"id":1490251,"object_type":"structure","relational_id":53152,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":374038,"structure_id":53197,"section_number":"6.2-2000","catch_line":"Definitions","url":"\/6.2-2000\/","token":"6.2\/III\/20\/6.2-2000","metadata":false},{"id":374039,"structure_id":53197,"section_number":"6.2-2001","catch_line":"(Effective July 1, 2026) License requirement; exceptions","url":"\/6.2-2001\/","token":"6.2\/III\/20\/6.2-2001","metadata":false},{"id":374040,"structure_id":53197,"section_number":"6.2-2002","catch_line":"Application for license; form; content; fee","url":"\/6.2-2002\/","token":"6.2\/III\/20\/6.2-2002","metadata":{"court_decisions":{"0":{"name":"Cochran v. Fairfax County Board of Zoning Appeals","case_number":"Record 030982; Record 031770; Record 031771","citation":"267 Va. 756","date":"2004-04-23","url":"https:\/\/www.courtlistener.com\/opinion\/1059092\/cochran-v-fairfax-county-board-of-zoning-appeals\/","abstract":" .\u202f.\u202f. SENIOR JUSTICE RUSSELL .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"1":{"name":"Bd. of Zoning of the City of Virginia Beach v. Pennington","case_number":"031771","citation":null,"date":"2004-04-23","url":"https:\/\/www.courtlistener.com\/opinion\/1059105\/bd-of-zoning-of-the-city-of-virginia-beach-v-penni\/","abstract":" .\u202f.\u202f. Present: Hassell, C.J., Lacy, Koontz, Kinser, Lemons and .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"2":{"name":"Cochran v. FAIRFAX COUNTY BD. OF ZONING","case_number":"030982","citation":"594 S.E.2d 571","date":"2004-04-23","url":"https:\/\/www.courtlistener.com\/opinion\/1059103\/cochran-v-fairfax-county-bd-of-zoning\/","abstract":" .\u202f.\u202f. 594 S.E.2d 571 (2004) .\u202f.\u202f. ","court_html":"SCV<\/abbr>"}}}},{"id":374041,"structure_id":53197,"section_number":"6.2-2003","catch_line":"Bond required","url":"\/6.2-2003\/","token":"6.2\/III\/20\/6.2-2003","metadata":false},{"id":374042,"structure_id":53197,"section_number":"6.2-2004","catch_line":"Investigation of applications","url":"\/6.2-2004\/","token":"6.2\/III\/20\/6.2-2004","metadata":false},{"id":374043,"structure_id":53197,"section_number":"6.2-2005","catch_line":"Qualifications","url":"\/6.2-2005\/","token":"6.2\/III\/20\/6.2-2005","metadata":false},{"id":374044,"structure_id":53197,"section_number":"6.2-2006","catch_line":"Licenses; places of business; changes","url":"\/6.2-2006\/","token":"6.2\/III\/20\/6.2-2006","metadata":false},{"id":374045,"structure_id":53197,"section_number":"6.2-2007","catch_line":"Acquisition of control; application","url":"\/6.2-2007\/","token":"6.2\/III\/20\/6.2-2007","metadata":false},{"id":374046,"structure_id":53197,"section_number":"6.2-2008","catch_line":"Retention of books, accounts, and records; responding to Bureau","url":"\/6.2-2008\/","token":"6.2\/III\/20\/6.2-2008","metadata":false},{"id":374047,"structure_id":53197,"section_number":"6.2-2009","catch_line":"Annual report","url":"\/6.2-2009\/","token":"6.2\/III\/20\/6.2-2009","metadata":false},{"id":374049,"structure_id":53197,"section_number":"6.2-2010","catch_line":"Other reporting requirements","url":"\/6.2-2010\/","token":"6.2\/III\/20\/6.2-2010","metadata":false},{"id":374050,"structure_id":53197,"section_number":"6.2-2011","catch_line":"Investigations; examinations","url":"\/6.2-2011\/","token":"6.2\/III\/20\/6.2-2011","metadata":{"court_decisions":{"0":{"name":"Capital One Financial Corporation v. Commissioner","case_number":"10-1788","citation":null,"date":"2011-10-21","url":"https:\/\/www.courtlistener.com\/opinion\/2968580\/capital-one-financial-corporation-v-commissioner\/","abstract":" .\u202f.\u202f. PUBLISHED .\u202f.\u202f. ","court_html":"Court of Appeals for the Fourth Circuit"},"1":{"name":"Capital One Financial Corp. v. Commissioner","case_number":"10-1788","citation":"659 F.3d 316","date":"2011-10-21","url":"https:\/\/www.courtlistener.com\/opinion\/2484672\/capital-one-financial-corp-v-commissioner\/","abstract":" .\u202f.\u202f. 659 F.3d 316 (2011) .\u202f.\u202f. ","court_html":"Court of Appeals for the Fourth Circuit"}}}},{"id":374051,"structure_id":53197,"section_number":"6.2-2012","catch_line":"Annual fees","url":"\/6.2-2012\/","token":"6.2\/III\/20\/6.2-2012","metadata":{"court_decisions":""}},{"id":374052,"structure_id":53197,"section_number":"6.2-2013","catch_line":"Regulations","url":"\/6.2-2013\/","token":"6.2\/III\/20\/6.2-2013","metadata":false},{"id":374053,"structure_id":53197,"section_number":"6.2-2014","catch_line":"Required and prohibited business methods","url":"\/6.2-2014\/","token":"6.2\/III\/20\/6.2-2014","metadata":false},{"id":374054,"structure_id":53197,"section_number":"6.2-2015","catch_line":"Fees and contributions","url":"\/6.2-2015\/","token":"6.2\/III\/20\/6.2-2015","metadata":false},{"id":374055,"structure_id":53197,"section_number":"6.2-2016","catch_line":"Additional charges","url":"\/6.2-2016\/","token":"6.2\/III\/20\/6.2-2016","metadata":false},{"id":374056,"structure_id":53197,"section_number":"6.2-2017","catch_line":"Advertising","url":"\/6.2-2017\/","token":"6.2\/III\/20\/6.2-2017","metadata":false},{"id":374057,"structure_id":53197,"section_number":"6.2-2018","catch_line":"Suspension or revocation of license","url":"\/6.2-2018\/","token":"6.2\/III\/20\/6.2-2018","metadata":false},{"id":374058,"structure_id":53197,"section_number":"6.2-2019","catch_line":"Cease and desist orders","url":"\/6.2-2019\/","token":"6.2\/III\/20\/6.2-2019","metadata":false},{"id":374060,"structure_id":53197,"section_number":"6.2-2020","catch_line":"Notice of proposed suspension or revocation","url":"\/6.2-2020\/","token":"6.2\/III\/20\/6.2-2020","metadata":false},{"id":374061,"structure_id":53197,"section_number":"6.2-2021","catch_line":"Civil penalties","url":"\/6.2-2021\/","token":"6.2\/III\/20\/6.2-2021","metadata":false},{"id":374062,"structure_id":53197,"section_number":"6.2-2022","catch_line":"Criminal penalty","url":"\/6.2-2022\/","token":"6.2\/III\/20\/6.2-2022","metadata":false},{"id":374063,"structure_id":53197,"section_number":"6.2-2023","catch_line":"Private right of action","url":"\/6.2-2023\/","token":"6.2\/III\/20\/6.2-2023","metadata":false},{"id":374064,"structure_id":53197,"section_number":"6.2-2024","catch_line":"Authority of Attorney General; referral by Commission to Attorney General","url":"\/6.2-2024\/","token":"6.2\/III\/20\/6.2-2024","metadata":false},{"id":374065,"structure_id":53197,"section_number":"6.2-2025","catch_line":"Violation of the Virginia Consumer Protection Act","url":"\/6.2-2025\/","token":"6.2\/III\/20\/6.2-2025","metadata":false}],"previous_section":{"id":374052,"structure_id":53197,"section_number":"6.2-2013","catch_line":"Regulations","url":"\/6.2-2013\/","token":"6.2\/III\/20\/6.2-2013","metadata":false},"next_section":{"id":374054,"structure_id":53197,"section_number":"6.2-2015","catch_line":"Fees and contributions","url":"\/6.2-2015\/","token":"6.2\/III\/20\/6.2-2015","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-2014\/","history_text":"

This law was first created in 2004. The record of its establishment is cataloged in chapter 790<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1493685,"object_type":"law","relational_id":374053,"identifier":"6.2-2014","token":"6.2\/III\/20\/6.2-2014","url":"\/6.2-2014\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/6.2-2014\/","token":"6.2\/III\/20\/6.2-2014","dublin_core":{"Title":"Required and prohibited business methods","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-2014","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Each licensee<\/span> shall comply with the following requirements:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Each DMP<\/span> shall be evidenced by an agreement, which shall be maintained in either a hard copy, including a faxed copy, or electronic version and which shall be signed by the consumer<\/span> and a person<\/span> authorized by the licensee<\/span> to sign such agreements and dated the same day the DMP<\/span> is executed by the consumer<\/span>. The agreement may be signed by the parties either originally or by electronic signature<\/span>. The agreement shall set forth, at a minimum: (i) the name and address of both the consumer<\/span> and the licensee<\/span>; (ii) a full description of all services to be performed for the consumer<\/span> by the licensee<\/span>; (iii) a clear explanation, highlighted in bold type, of the costs to the consumer<\/span>; (iv) a statement that the DMP<\/span> agreement can be terminated for any reason by the consumer<\/span> and that the consumer<\/span> has no obligation to continue the arrangement unless satisfied with the services provided; (v) a statement that in the event of termination of the agreement, the consumer<\/span> shall be entitled to a refund of all funds that have not been disbursed to creditors<\/span> and either (a) all fees paid if terminated within five days of the date the DMP<\/span> agreement is executed by the consumer<\/span> or (b) all fees paid less the set-up fee<\/span> if terminated more than five but less than 31 days after execution by the consumer<\/span>; (vi) an explanation of the method of dispute resolution under the agreement; (vii) an explanation of the obligations of the consumer<\/span> and the licensee<\/span> that are subject to the agreement; (viii) notification of privacy policies in compliance with state and federal laws<\/span> and regulations; and (ix) a statement that participating in a DMP<\/span> may have a derogatory effect upon the consumer<\/span>’s credit report; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A licensee<\/span> shall give to the consumer<\/span> a duplicate original<\/span> of the agreement executed by the consumer<\/span> and licensee<\/span> upon full execution; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> At the time of execution of the DMP<\/span>, a licensee<\/span> shall have a good faith belief that the creditors<\/span> listed in the DMP<\/span> will participate in the DMP<\/span>. A licensee<\/span> shall advise the consumer<\/span> of any changes by a creditor<\/span> in accepting payments under the DMP<\/span> promptly upon learning of such changes; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A licensee<\/span> shall provide a consumer<\/span> enrolled in a DMP<\/span> with periodic statements, no less often than quarterly, accounting for the funds received from the consumer<\/span> for payments to the consumer<\/span>’s creditors<\/span> and disbursements made to each such creditor<\/span> on the consumer<\/span>’s behalf since the last report; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> A licensee<\/span> shall not purchase any debt or obligation of a consumer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> A licensee<\/span> shall not lend money or provide credit to any consumer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> A licensee<\/span> shall not obtain a mortgage or any other security interest in the property of a consumer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> A licensee<\/span> shall not operate as a debt collector<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> A licensee<\/span> shall not structure an agreement for the consumer<\/span> that, at the conclusion of the DMP<\/span>, would knowingly result in negative amortization of any of the consumer<\/span>’s obligations to creditors<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> A licensee<\/span> shall not give legal advice to a consumer<\/span> or perform legal services on behalf of a consumer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> A licensee<\/span> shall have an established practice of disbursing to creditors<\/span> funds received from a consumer<\/span> under a DMP<\/span> within eight business days of receipt and shall provide consumers<\/span> its disbursement practices in writing, including any circumstances that would establish an exception to the eight-day practice; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> A licensee<\/span> shall maintain appropriate safeguards against conflicts of interest in the conduct of its DMP<\/span> activities; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> A licensee<\/span> shall not employ any person<\/span> who is employed at the same time by a creditor<\/span> or collection agency<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> A licensee<\/span> shall keep (i) its operating funds separate from the funds entrusted to the licensee<\/span> by consumers<\/span> for disbursement to creditors<\/span> and (ii) consumers<\/span>’ funds in a trust account, held in the name of the licensee<\/span> by an insured depository institution; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> A licensee<\/span> shall upon request give a consumer<\/span> signed, dated receipts for funds received from a consumer<\/span> under a DMP<\/span>, or provide a means whereby the consumer<\/span> may view the status of his account electronically; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> A licensee<\/span> shall not obtain any agreement from a consumer<\/span> (i) giving the licensee<\/span> or any third person<\/span> power of attorney<\/span> or authority to confess judgment<\/span> for the consumer<\/span>; (ii) authorizing the licensee<\/span> or any third party<\/span> to bring suit against the consumer<\/span> in a court<\/span> outside the Commonwealth; or (iii) waiving any right the consumer<\/span> has under this chapter. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREQUIRED AND PROHIBITED BUSINESS METHODS (\u00a7 6.2-2014)\n\nEach licensee shall comply with the following requirements:\n\n1. Each DMP shall be evidenced by an agreement, which shall be maintained in\neither a hard copy, including a faxed copy, or electronic version and which\nshall be signed by the consumer and a person authorized by the licensee to sign\nsuch agreements and dated the same day the DMP is executed by the consumer. The\nagreement may be signed by the parties either originally or by electronic\nsignature. The agreement shall set forth, at a minimum: (i) the name and address\nof both the consumer and the licensee; (ii) a full description of all services\nto be performed for the consumer by the licensee; (iii) a clear explanation,\nhighlighted in bold type, of the costs to the consumer; (iv) a statement that\nthe DMP agreement can be terminated for any reason by the consumer and that the\nconsumer has no obligation to continue the arrangement unless satisfied with the\nservices provided; (v) a statement that in the event of termination of the\nagreement, the consumer shall be entitled to a refund of all funds that have not\nbeen disbursed to creditors and either (a) all fees paid if terminated within\nfive days of the date the DMP agreement is executed by the consumer or (b) all\nfees paid less the set-up fee if terminated more than five but less than 31 days\nafter execution by the consumer; (vi) an explanation of the method of dispute\nresolution under the agreement; (vii) an explanation of the obligations of the\nconsumer and the licensee that are subject to the agreement; (viii) notification\nof privacy policies in compliance with state and federal laws and regulations;\nand (ix) a statement that participating in a DMP may have a derogatory effect\nupon the consumer’s credit report;\n\n2. A licensee shall give to the consumer a duplicate original of the agreement\nexecuted by the consumer and licensee upon full execution;\n\n3. At the time of execution of the DMP, a licensee shall have a good faith\nbelief that the creditors listed in the DMP will participate in the DMP. A\nlicensee shall advise the consumer of any changes by a creditor in accepting\npayments under the DMP promptly upon learning of such changes;\n\n4. A licensee shall provide a consumer enrolled in a DMP with periodic\nstatements, no less often than quarterly, accounting for the funds received from\nthe consumer for payments to the consumer’s creditors and disbursements\nmade to each such creditor on the consumer’s behalf since the last report;\n\n5. A licensee shall not purchase any debt or obligation of a consumer;\n\n6. A licensee shall not lend money or provide credit to any consumer;\n\n7. A licensee shall not obtain a mortgage or any other security interest in the\nproperty of a consumer;\n\n8. A licensee shall not operate as a debt collector;\n\n9. A licensee shall not structure an agreement for the consumer that, at the\nconclusion of the DMP, would knowingly result in negative amortization of any of\nthe consumer’s obligations to creditors;\n\n10. A licensee shall not give legal advice to a consumer or perform legal\nservices on behalf of a consumer;\n\n11. A licensee shall have an established practice of disbursing to creditors\nfunds received from a consumer under a DMP within eight business days of receipt\nand shall provide consumers its disbursement practices in writing, including any\ncircumstances that would establish an exception to the eight-day practice;\n\n12. A licensee shall maintain appropriate safeguards against conflicts of\ninterest in the conduct of its DMP activities;\n\n13. A licensee shall not employ any person who is employed at the same time by a\ncreditor or collection agency;\n\n14. A licensee shall keep (i) its operating funds separate from the funds\nentrusted to the licensee by consumers for disbursement to creditors and (ii)\nconsumers’ funds in a trust account, held in the name of the licensee by\nan insured depository institution;\n\n15. A licensee shall upon request give a consumer signed, dated receipts for\nfunds received from a consumer under a DMP, or provide a means whereby the\nconsumer may view the status of his account electronically; and\n\n16. A licensee shall not obtain any agreement from a consumer (i) giving the\nlicensee or any third person power of attorney or authority to confess judgment\nfor the consumer; (ii) authorizing the licensee or any third party to bring suit\nagainst the consumer in a court outside the Commonwealth; or (iii) waiving any\nright the consumer has under this chapter.\n\nHISTORY: 2004, c. 790, \u00a7 6.1-363.16; 2010, c. 794.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}