Florida enacts telemarketing exemption from credit counseling services law

State Issues TSR Florida State Legislation

On April 26, the Governor of Florida signed into law HB 1031 (the “Act”), which will amend Florida’s credit counseling services law to provide an exception for telemarketers and sellers that furnish “debt relief services” (as defined under the federal Telemarketing and Consumer Fraud and Abuse Prevention Act and the Telemarketing Sales Rule: i.e., the TSR). Generally, the law places certain disclosure, financial reporting, and fee charging obligations on any person engaged in “debt management services” or “credit counseling services.” The amendment will provide those telemarketers or sellers that “provide any debt relief service” within the scope of the TSR will not be subject to the provisions of Florida’s credit counseling law as long as they do not receive from the debtor or disburse to a creditor any money or items of value. The Act will go into effect on July 1.