| (a) For purposes of this section, the terms "debt management
service" and "provider" have the meanings assigned by Texas Finance
Code §394.202.
(b) A debt management service provider who, in the
course of conducting its debt management services, receives money
from consumers for distribution to the consumer's creditors need not
obtain a money transmission license if that provider:
(1) is registered and in good standing with the Office
of Consumer Credit Commissioner as a debt management service provider
under Finance Code Chapter 394;
(2) is in compliance with all requirements of Finance
Code Chapter 394 and 7 TAC Chapter 88 (relating to Consumer Debt Management
Services); and
(3) conducts no money transmission as defined by Finance
Code §152.003, except as necessary to provide debt management
services to contractual customers.
(c) Any debt management service provider who receives
money from consumers and who is exempted from registration by the
Office of Consumer Credit Commissioner for any reason, including under
Finance Code §394.203(c)(5), must contact the Department of Banking
to seek a determination as to whether a money transmission license
is required.
(d) Any debt management service provider exempted from
money transmission licensing under subsection (b) of this section
must immediately contact the Department of Banking in the event that
any of the conditions listed in subsection (b) of this section change.
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