| (a) Required counseling for consumers who enter into debt management services agreements. In conjunction with entering into a debt management services agreement with a consumer, the provider's credit counselors must provide education to the consumer regarding budget analysis and credit counseling services that include: (1) an outline of available opportunities to resolve the consumer's credit problems; (2) an analysis of the consumer's current financial condition; (3) discussion of the factors that caused such financial condition; (4) assistance in developing options in responding to the consumer's problems without incurring negative amortization of debt; and (5) information and instruction on the following topics: (A) budget development; (B) money management; and (C) wise use of credit. (b) Adequate opportunity for consumers. Credit counseling provided under subsection (a) of this section must give the consumer an adequate opportunity to obtain a complete financial assessment and comprehensive counseling, relative to the consumer's personal financial situation. (c) Suggested guidelines. (1) This subsection provides suggested guidelines for the amount of credit counseling to be provided to consumers who enter into debt management services agreements. These suggested guidelines are intended to give debt management services providers considerable flexibility to fit individual needs while providing some guidance. (2) An optimum guideline for the amount of credit counseling to be provided to consumers who enter into debt management services agreements is 45 - 90 minutes, depending on the unique circumstances of the consumer's debt and financial situation. (d) Community-based financial education encouraged. Debt management services providers are encouraged to provide community-based financial education initiatives in addition to the counseling required by this section for consumers who enter into debt management services agreements. |
