LA
R.S. T. 9, Cdbk. III
Part XV. Credit Repair Services Organizations Act
West's
Title 9. Civil Code Ancillaries (Refs & Annos)
Code Book III--of the Different Modes of Acquiring the Ownership
of Things
Code Title XII--of Loan
Chapter
2.
Part
XV. Credit Repair Services Organizations Act (Refs & Annos)
§ 3573.1. Short title;
purpose; license; renewal; application; change of location; change of name;
fees
A. This Part shall be known and may be cited as the "Credit
Repair Services Organizations Act".
B. The Legislature of Louisiana recognizes the right of the
citizens of the state to utilize the services of qualified credit repair
organizations for advice and assistance in improving their credit matters. The
Legislature of Louisiana does hereby declare that it is in the best interest of
the citizens of the state to protect consumers in their
efforts to improve their credit record, history, and rating. The purpose of
this Part is to promote the safety and welfare of the people of this state by
providing for regulatory oversight in an area in which unqualified or
unscrupulous individuals may injure or mislead the public.
C. No person shall conduct business as a credit repair services
organization without first having obtained a license from the commissioner and
paying a five hundred dollar application fee.
D. (1) No license shall
be issued unless the commissioner, upon investigation, finds that the financial
responsibility, character, and fitness o f the applicant, its owners, its
partners if the applicant is a partnership, its members if the applicant is a
limited liability company, and its officers and directors if the applicant is a
corporation, are such as to warrant a belief that the business will be
conducted honestly and fairly within the purposes of this Part. The
commissioner may grant restricted or conditional licenses.
(2)(a) Upon written
request, an applicant may seek a hearing on the question of his qualification
for a license if either:
(i) The commissioner has
notified the applicant in writing that his application has been denied.
(ii) The commissioner
has not issued a license within sixty days of the date a complete application
was filed.
(b) A request for a
hearing may not be made more than thirty days after the applicant has received
the written notice notifying him that the application was denied and stating
the commissioner's findings in support of the denial of the application.
E. Every application for a license shall contain such information
as the commissioner may require to determine if the
applicant qualifies for a license.
F. Annually by November first each credit repair services
organization shall file a renewal application and pay a renewal fee of four
hundred dollars. An annual renewal application received by the commissioner
postmarked after December first shall be accompanied by a late filing fee of
two hundred dollars, in addition to the annual renewal fee.
G. If the annual renewal application and renewal fee is not
received postmarked by December thirty-first, the license shall lapse without a
hearing or notification, and the license shall not be reinstated; however, the
person whose license has lapsed may apply for a new license. No new license
shall be issued upon the filing of a new application by any person against whom
any penalty or fee has been imposed unless and until such penalty or fee
previously accrued under this Section has been paid.
H. A license cannot be sold or transferred by any means.
I. A credit repair
services organization shall not change location or change its name without
prior written approval of the commissioner. A fee of one hundred dollars is
required to change a location or name. In addition to the one hundred dollar
fee, a penalty of two hundred dollars shall be paid if prior written approval
is not obtained.
J. (1) Any person whose application, or renewal application, for
licensure under this Part, has been denied for any reason, may not reapply for
a license under this Part until after at least three years from the date of the
order of denial, unless the commissioner, in his sole discretion, prescribes an
earlier or later date.
(2) For purposes of this Subsection, the term "order"
shall mean the first to occur of either:
(a) The date of the issuance of the commissioner's notification of
denial of the person's application; or
(b) Sixty days after the
filing of that application.
(3) For purposes of this Subsection, the term "person"
shall mean the applicant, its owners, and its members if the applicant is a
limited liability company, its partners if the applicant is a partnership, its
officers and directors if the applicant is a corporation, and any other person
determined by the commissioner, in his sole discretion, to be closely related
to the person.
K. (1) No person shall
acquire or control a credit repair service organization license through the
acquisition or control of more than fifty percent of the ownership interest in
a licensee without first having obtained written approval from the
commissioner, pursuant to an application for a change of control in ownership
of the licensee, filed in the manner and on a form prescribed by the
commissioner and accompanied by a fee of three hundred dollars. Any person who acquires controlling interest in a licensee without first
having filed an application for change of control with the commissioner shall
be deemed to be operating without proper authority and subject to the penalties
of this Part.
(2) For the purposes of
this Section, a person acquires or controls the licensee when at least one of the
following conditions exists:
(a) The person, directly
or acting through one or more other persons, owns, controls, or has the power
to vote more than fifty percent of any class of stock of the corporation.
(b) The person controls,
in any manner, the election of a majority of the directors of the corporation.
(c) The commissioner
determines, after notice and an opportunity for hearing, that the person
directly or indirectly exercises a controlling influence over the
management or the policies of the licensee.
(3) When the licensee is
a limited liability company or a limited liability partnership, the licensee is
acquired or controlled if one of the following occurs:
(a) There is a change of
managers or general partners.
(b) An existing manager
or general partner acquires or controls the licensee as provided in Paragraph
(2) of this Subsection.
(c) The commissioner
determines that there has been a significant change in the membership or
partnership interests, including but not limited to a change in ownership or
control, directly or indirectly affecting twenty-five percent or more of the
total interest of the licensee.
(4) A corporation that
is a licensee shall notify the commissioner within sixty days of a stockholder
becoming a principal stockholder, which is defined for purposes of this Section
as owning ten percent or greater of the outstanding stock of the corporation.
§ 3573.2. Definitions;
exemptions
A. As used in this Part, the following terms shall have the
following meanings:
(1) "Buyer" means an individual who is solicited to
purchase or who purchases the services of a credit repair services
organization.
(2) "Commissioner" means the commissioner of the office
of financial institutions.
(3) "Consumer reporting agency" shall have the meaning
assigned by Section 603(f), Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.).
(4) "Credit repair
services organization" means a person who, with respect to a buyer, in
return for the payment of money or other valuable consideration, directly or
indirectly, provides or represents that he can or will, directly or indirectly,
provide any of the following services:
(a) Improving a buyer's
credit record, history, or rating.
(b) Advice or assistance
to a buyer with regard to improving a buyer's credit record, history, or
rating, including the sale of a self-help instructional guide.
(5) "Person" means an individual, corporation,
partnership, trust, association, joint venture pool, syndicate, sole
proprietorship, unincorporated organization, or any other form of entity not
specifically listed herein.
B. The following are exempt from this Part:
(1) Repealed by Acts 2004, No. 79, § 2, eff. May 28, 2004.
(2) A licensed lender or other person authorized to make or broker
loans or extensions of credit under the laws of this state or the United States
who is subject to regulation and supervision by this state or the United
States, or a lender approved by the United States Secretary of Housing and
Urban Development for participation in a mortgage insurance program under the
National Housing Act (12 U.S.C. Section 1701 et seq.), provided the credit repair service is in connection with a loan and
no additional fee is charged.
(3) A bank or savings association whose deposits or accounts are
federally insured or a wholly-owned subsidiary of such a bank or savings
association.
(4) A credit union doing business in this state.
(5) A person licensed to practice law in this state while acting
within the course and scope of the person's practice as an attorney, and when
such attorney is not actively and principally engaged as a credit repair
services organization and such attorney's credit repair services are ancillary
to the providing of other legal services. The exemption provided for in this
Paragraph does not apply when an attorney is paid a fee by a client solely for
the purposes of providing services, directly or indirectly, as a credit repair
services organization as defined in Paragraph (A)(4) of this Section.
(6) A consumer reporting agency.
(7) Certified public accountants licensed to practice their
profession in the state of Louisiana, while acting within the course and scope
of their practice as a certified public accountant, and when such certified
public accountant is not actively and principally engaged as a credit repair
services organization and such certified public accountant's credit repair
services are ancillary to the providing of other accounting services. The
exemption provided for in this Paragraph does not apply
when a certified public accountant is paid a fee by a client solely for the
purposes of providing services, directly or indirectly, as a credit repair
services organization defined in Paragraph (A)(4) of this Section.
§ 3573.2-A. [Blank]
§ 3573.3. Prohibited
conduct
A credit repair services organization or a salesperson, agent, or
representative of a credit repair services organization, who sells or attempts
to sell the services of a credit repair services organization shall not:
(1) Charge a buyer or
receive from a buyer money or other valuable consideration unless the credit
repair services organization has obtained, in accordance with R.S. 9:3573.4,
a surety bond issued by a surety company authorized to do business in this
state or has established and maintains a trust account at a federally insured
bank or savings association located in this state in which the amount required
by R.S. 9:3573.4(E) is held in trust as required by R.S. 9:3573.4.
(2) Make or use a false
or misleading representation in the offer or sale of the services of a credit
repair services organization, including guaranteeing to
"erase bad credit" or words to that effect unless the representation
clearly discloses that this can be done only if the credit history is
inaccurate or obsolete.
(3) Engage, directly or
indirectly, in a fraudulent or deceptive act, practice, or course of dealing in
connection with the offer or sale of the services of a credit repair services
organization.
(4) Make or advise a
buyer to make a statement with respect to a buyer's credit worthiness, credit
standing, or credit capacity that is false or misleading or that should be
known by the exercise of reasonable care to be false or misleading to a
consumer reporting agency or to a person who has extended credit to a buyer.
(5) Advertise or cause
to be advertised, in any manner whatsoever, the services of a credit repair
services organization without filing a registration statement with the office
of financial institutions, unless otherwise provided by
this Part.
(6) Make nonessential
requests for credit information relating to a buyer from any source providing
such information for no cost.
(7) Directly or
indirectly, as determined by the commissioner, through any affiliate,
subsidiary, related person, or otherwise, charge or receive any money or other
consideration or thing of value for the performance of any service which the
credit repair services organization has agreed to perform, or represented that
it will perform, for any buyer before such service is fully performed.
(8) As determined by the
commissioner, structure a transaction with a buyer in such a manner as to
attempt to circumvent the provisions of this Part.
(9) Divide a transaction
into multiple transactions, as determined by the commissioner,
such as by attempting to sell or selling any publication, including, but not
limited to, any book, pamphlet, or electronic or computer guide, related in any
way to improving a buyer's credit record, history, or rating, to a buyer and,
directly or indirectly, through any affiliate, subsidiary, related person, or
otherwise, providing services to the buyer to assist him in utilizing or
implementing the information or directions contained therein, unless all
charges and fees related to such sale and service combined do not exceed the
bona fide costs for publishing the copy of such publication.
(10) As determined by
the commissioner, violate any provision of the federal Credit Repair
Organizations Act, 15 U.S.C. 1679 et seq., as amended. Any violation of such Act shall constitute a violation of
state law.
§ 3573.4. Bond; trust
account
A. All credit repair services organizations required to be
licensed by the commissioner shall obtain a surety bond issued by a company
licensed to do business in
B. The bond shall be filed with the Office of Financial
Institutions. If a trust account is established, a notarized or otherwise
official notification of the deposit by the depository institution shall be
filed with the Office of Financial Institutions. Such notification shall
include, at a minimum, the name of the financial institution, name of the
credit repair services organization, account number, and verification that the
account is established in accordance with the terms set forth in this Section.
C. The bond or trust account required must be in favor of the
state of Louisiana for the benefit of any person who is damaged by any
violation of this Part.
D. Any persons claiming against the bond or trust account for a
violation of this Part may maintain an action at law against the credit repair
services organization and against the surety or trustee. The surety or trustee
shall be liable only for damages awarded under R.S. 9:3573.10 and not the punitive damages permitted under that Section. The aggregate
liability of the surety or trustee to all persons damaged by a credit repair
services organization's violation of this Part shall not exceed the amount of
the bond or trust account.
E. The bond or the trust account shall be in the amount of one
hundred thousand dollars.
F. A depository holding money in a trust account under this Part
may not convey money in the account to the credit repair services organization
that established the account or a representative of the credit repair services organization unless the credit repair services organization
or representative presents a statement issued by the office of financial
institutions indicating that R.S. 9:3573.5(E) has been satisfied in relation to the account. The office of financial
institutions may conduct investigations and require submission of information
as necessary to enforce this Subsection.
G. The credit repair services organization shall notify the
commissioner in writing within thirty days after it has ceased to do business
in this state. The surety bond or trust account shall be maintained for two
years after the date that the credit services organization ceases operations or
the date that it has filed notice with the office of financial institutions,
whichever is later.
§ 3573.5. Repealed by
Acts 2006, No. 190, § 2
§ 3573.6. Disclosure
statement
A. Before executing a contract or agreement with a buyer or
receiving money or other valuable consideration, a credit repair services
organization shall provide the buyer with a statement in writing, containing:
(1) A complete and detailed description of the services to be
performed by the credit repair services organization for the buyer and the
total cost of the services.
(2) A statement explaining the buyer's right to proceed against
the bond or trust account required by R.S. 9:3573.4.
(3) The name and address of the surety company that issued the
bond or the name and address of the depository and the trustee and the account
number of the trust account.
(4) A complete and accurate statement of the buyer's right to
review any file on the buyer maintained by a consumer reporting agency, as
provided by the Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.).
(5) A statement that the
buyer's file is available for review from the consumer reporting agency at no
charge, under certain circumstances, if requested by the consumer within thirty
days of receiving notice of a denial of credit and as provided in the federal
Fair Credit Reporting Act.
(6) A complete and
accurate statement of the buyer's right to dispute directly with the consumer
reporting agency the completeness or accuracy of an item contained in a file on
the buyer maintained by that consumer reporting agency.
(7) A statement that
accurate information cannot be permanently removed from the
files of a consumer reporting agency.
(8) A complete and
accurate statement of when consumer information becomes obsolete and of when
consumer reporting agencies are prevented from issuing reports containing obsolete
information.
(9) A complete and
accurate statement of the availability of nonprofit credit counseling services.
B. The credit repair services organization shall maintain on file,
for a period of two years after the date the statement is provided, an exact
copy of the statement, signed by the buyer, acknowledging receipt of the
statement.
§ 3573.7. Form and
terms of contract
A. Each contract between the buyer and a credit repair services
organization for the purchase of the services of the credit repair services
organization must be in writing, dated, signed by the buyer, and must include:
(1) A statement in type that is boldfaced, capitalized,
underlined, or otherwise set out from surrounding written materials so as to be
conspicuous, in immediate proximity to the space reserved for the signature of
the buyer, as follows: "You, the buyer, may cancel this contract at any
time before midnight of the fifth day after the date of the transaction. See
the attached notice of cancellation form for an explanation of this right."
(2) The terms and
conditions of payment, including the total of all payments to be made by the
buyer, whether to the credit repair services organization or to another person.
(3) A full and detailed
description of the services to be performed by the credit repair services
organization for the buyer, including all guarantees and all promises of full
or partial refunds, and the estimated length of time, not to exceed one-hundred
eighty days, for performing the services.
(4) The address of the
credit repair services organization's principal place of business and the name
and address of its agent in the state authorized to receive service of process.
B. The contract must have attached two easily detachable copies of
a notice of cancellation. The notice must be in boldfaced type and in the
following form:
"Notice of Cancellation
You may cancel this
contract, without any penalty or obligation, within five days after the date
the contract is signed.
If you cancel, any payment made by you under this contract will be
returned within ten days after the date of receipt by the seller of your
cancellation notice.
To cancel this contract, send by registered or certified mail,
return receipt requested, or deliver in person, a signed dated copy of this
cancellation notice, or other written notice to:
(Name of seller) at (address of seller) (place of business) not
later than midnight (date).
I hereby cancel this transaction.
(date)
(purchaser's signature)"
C. The credit repair services organization shall give to the buyer
a copy of the completed contract and all other documents the credit repair
services organization requires the buyer to sign at the time they are signed.
D. The breach by a credit repair services organization of a
contract under this Part, or of any obligation arising from a contract under
this Part, is a violation of this Part.
§ 3573.8. Waiver
A. A credit repair services organization shall not attempt to
cause a buyer to waive a right under this Part.
B. A waiver by a buyer of any part of this Part is void.
§ 3573.9. Powers of the
commissioner
A. (1) The commissioner
shall have the power to examine all books, records, and accounts of all persons
regulated under this Part. In addition to maintaining a copy of the contract
signed by the buyer and a copy of all correspondence pertaining to the efforts
made by the credit repair services organization to improve the buyer's credit
rating, the commissioner may prescribe by rule additional record keeping
requirements as deemed necessary to determine compliance with this Part.
(2)(a) Each credit repair
services organization required to be licensed under this Part shall maintain in
its offices such books, records, and accounts of its credit repair services
activities as the commissioner may require in order to determine whether such
credit repair services organization is complying with the provisions of this
Part and the rules and regulations promulgated under the provisions of this
Chapter, including, but not limited to, copies of all documentation regarding
customer transactions, itemization of all monies received
and disbursed, and documentation showing what services were performed for all
monies received.
(b) Such books, records,
and accounts shall be maintained separate and apart from any other business in
which the organization is involved and shall be kept at the location in the
state at which the credit repair services activity occurred or at the
organization's principal office unless otherwise permitted in writing by the
commissioner. If the credit repair services organization's books, records and
accounts are located outside the state, the organization, at the commissioner's
option, shall make them available to the commissioner at a location within the
state convenient to the commissioner, or pay the reasonable and necessary
expenses for the commissioner or his representatives to examine them at the
place where they are maintained.
(c) Each reproduction of
any book, record, or account shall be treated for all purposes as if it were
the original of the same.
B. After notice and
opportunity to be heard as provided in the Administrative Procedure Act, the
commissioner may revoke or suspend the license of a credit repair services
organization that:
(1) Violates, in
substance or in form, any of the provisions of this Part or any rule or regulation
promulgated, or any order, including a cease and desist order, issued, pursuant
to this Chapter or the provisions of 15 U.S.C. 1679.
(2) Violates, in
substance or in form, any provision of a voluntary consent or compliance
agreement which has been entered into with the commissioner.
(3) Has knowingly
provided or caused to be provided to the commissioner any false or fraudulent
misrepresentation of material fact or any false or fraudulent financial
statement, or has suppressed or withheld from the commissioner any information
which if submitted by him would have resulted in denial of the license
application.
(4) Refuses to permit an
examination by the commissioner of his books and affairs, or has refused or
failed within a reasonable time to furnish any information or make any report
that may be required by the commissioner under the provisions of this Part.
(5) Fails to maintain
records as required by the commissioner after being given written notice and
thirty days within which to correct the failure. The commissioner may grant, on
good cause shown, up to two thirty-day extensions within which to correct the
record keeping violations.
(6) Continues in office
any individual with power to direct the management or policies of a person
regulated by the Part, including but not limited to any officer, director, or
manager, if such individual is convicted of, pleads guilty to, or enters a plea
of nolo contendere to any felony under any state or federal law which involves
moral turpitude or which involves any aspect of the credit repair services
organization business.
(7) Violates any
provision of a regulatory or prohibitory statute and has been found to have
violated such statute by the governmental agency responsible for determining
such violations.
(8) Misrepresents
material facts or makes false promises likely to influence, persuade, or induce
an applicant into a credit repair services transaction, or pursues a course of
misrepresentation through agents or otherwise.
(9) Misrepresents or
conceals material facts, terms, or conditions of a transaction to which he is a
party, pertinent to an applicant for a credit repair services organization.
(10) Knowingly engages
in any transaction, practice, or course of business which perpetrates a fraud
upon any person in connection with any credit repair services transaction.
(11) Fails to pay any
fee or assessment imposed by this Part or by any rule or regulation promulgated
in accordance with this Chapter.
(12) Violates, in
substance or in form, the written restrictions or conditions under which the license
was issued.
(13) Fails, after notice
and without lawful excuse, to obey any order or subpoena issued by the
commissioner.
(14) Advertises as a
credit repair services organization without being properly licensed as required
by this Part or advertises as a credit repair services organization in a manner
determined by the commissioner, in his discretion, to be in violation of any
provision of this Part or any rule or regulation promulgated pursuant to this
Chapter or 15 U.S.C. 1679.
C. The commissioner may
report egregious violations to the attorney general or to the district attorney
of the appropriate parish, who may institute the proper proceedings to enjoin
the violation and enforce the penalties provided for in this Section.
D. The Office of Financial Institutions may issue advisory
opinions and interpretations regarding this Part, and such advisory opinions
and interpretations shall not be considered rules requiring compliance with the
rulemaking process of the Louisiana Administrative Procedure Act. The
commissioner and the employees of the Office of Financial Institutions shall
have no liability to any person with respect to an advisory opinion or
interpretation issued in connection with this Part.
E. Any person who acts as a credit repair services organization
without complying with the provisions of this Part shall be subject to
forfeiture of the compensation attributable to a particular client and received
by the credit repair services organization in connection with credit repair
services activity for that client.
F. All grounds for suspension or revocation listed in Subsection B
of this Section are violations of this Part and may serve as the basis for any
other enforcement action provided to the commissioner by this Chapter.
G. The commissioner may share information about any particular
entity which is licensed by the commissioner in the manner provided for in R.S 9:3518.1.
H. When the commissioner has cause to believe that any person has
violated or is violating any provision of this Part, he may, in addition to the
other powers conferred upon him, request such person to file a statement or
report in writing under oath or otherwise, on forms prescribed by him, as to
all facts and circumstances concerning the sale or advertisement of services by
any credit repair services organization and any other data and information he
deems necessary.
I. (1) The commissioner shall have the power to issue subpoenas to
any person for the purpose of discovering violations in this Part, and to
require the attendance of witnesses or the production of documents, conduct
hearings in aid of any investigation or inquiry, administer oaths, and examine
under oath any person in connection with the sale of services by any credit
repair services organization.
(2) Service of any
notice, order, or subpoena may be made by personal service or certified mail.
J. The commissioner may make and promulgate rules and regulations
as he deems necessary to carry out the provisions of this Part, including but
not limited to, the following:
(1) Providing for
definitions.
(2) Establishing licensure requirements.
(3) Providing for bond
and trust account requirements.
(4) Addressing issues
regarding transaction disclosures.
(5) Establishing fees
and assessments.
(6) Addressing issues
regarding forms and terms of contracts.
(7) Providing for
administrative and enforcement actions.
(8) Addressing issues
regarding advertising as a credit repair services organization.
(9) Providing for
records retention requirements.
K. The commissioner may enter into cooperative and reciprocal
agreements with the regulatory authorities of the federal government or of any
state for the periodic examination of persons engaging in the business of
credit repair and may accept reports of examination and other records from such
authorities in lieu of conducting his own examinations. The commissioner may
enter into joint actions with other regulatory bodies having concurrent
jurisdiction or may enter into such actions independently to carry out his
responsibilities under this Part and assure compliance with the laws of this
state.
L. In addition to any other authority conferred upon the
commissioner by this Part or this Chapter, the commissioner may order refunds
of the unauthorized portion of any fee or charge a person collects in violation
of this Part, and may impose a penalty not exceeding one thousand dollars per
violation upon any person who he has determined to have committed such
violation. For purposes of this Subsection, each
unauthorized fee or charge shall be considered a violation.
M. (1) Any person whose licensure under this Part has been
revoked, for any reason, may not reapply for a license under this Part until
after at least five years from the date of the order of suspension or
revocation, unless the commissioner, in his sole discretion, prescribes an
earlier or later date.
(2) For purposes of this
Subsection:
(a) The term
"order" shall mean the commissioner's notification of revocation of
the person's license.
(b) The term
"person" shall include the applicant, its owners, and its members if
the applicant is a limited liability company, its partners if the applicant is
a partnership, its officers and directors if the applicant is a corporation, and any other person determined by the commissioner, in his
sole discretion, to be closely related to the person.
N. Subject to the provisions of R.S. 13:4521 and 4581, all estimated costs of appeal, including those involved in
preparation of the administrative record for appeal, taken by a person in
connection with an adverse ruling of an administrative law judge in connection
with a hearing held pursuant to this Chapter and the Administrative Procedure
Act, [FN1] shall be paid by that person within sixty days
of the filing of the petition for appeal in the district court. Failure to pay
such estimated costs within the time specified herein shall result in said appeal
being dismissed with prejudice and without the necessity of any further action
being taken by any party.
O. Any final and definitive decision of an administrative law
judge, or in the case such decision is appealed, a final and definitive
judgment of an appellate court, issued in connection with any hearing held
pursuant to this Chapter and the Administrative Procedure Act shall be
considered a valid and final judgment that may be made executory by the
commissioner in accordance with the Code of Civil
Procedure.
[FN1] R.S. 49:950 et seq.
§ 3573.10. Action for
damages
A. A buyer injured by a violation of this Part or by a credit
repair services organization's breach of contract subject to this Part may
maintain an action in a court of competent jurisdiction for recovery of actual
damages plus costs of suit and reasonable attorney fees, which shall be
measured by the time reasonably expended by the consumer's attorney and not by
the amount of recovery. In case of an action brought by a buyer, actual damages
shall not be less than the amount paid by the buyer to the credit repair services
organization.
B. In the event of a willful violation by a credit repair services
organization of this Part or of a contract subject to this Part, a person who
is injured thereby shall be awarded, in addition to the damages allowable under
Subsection A of this Section, an additional amount equal to twice the actual
damages awarded under Subsection A of this Section.
C. A person who is entitled to recover damages, costs, or attorney
fees from a credit repair services organization may petition the Office of
Financial Institutions for relief under any surety bond established pursuant to R.S. 9:3573.4.
§ 3573.11. Orders,
injunctions, and publication; availability of records to the general public
A. A buyer may bring an action in a court to enjoin a violation of
this Part.
B. The commissioner may, in his discretion, conduct such
investigations as he deems necessary to ascertain possible violations of this
Part or any rule, regulation, or order promulgated or issued pursuant to this
Chapter. Any person who is engaged in or is engaging in or is about to engage
in any act or practice which is prohibited by this Part or any rule,
regulation, or order promulgated or issued pursuant to this Chapter, or any
person who has failed to act or is failing to act or is about to fail to act
under any affirmative duty imposed by this Part or any rule, regulation, or
order promulgated or issued pursuant to this Chapter, shall be subject to
appropriate action by the commissioner. Such action shall include, but shall
not be limited to, the issuance of orders to cease and desist or to assess civil
money penalties, entering into compliance agreements, seeking injunctive relief
from a court of competent jurisdiction, or any combination
thereof.
C. The commissioner shall make available for inspection by the
general public, electronically or otherwise, any and all orders or decisions
arising from any violation of this Part, with respect to the following
exclusively enumerated actions:
(1) Cease and desist
orders.
(2) Denial of an
application for licensure, notification, or exemption.
(3) Revocation or
suspension of a license, notification, or exemption.
(4) Assessment of civil
money penalties or fines.
(5) Obtaining injunctive
relief.
(6) Unlicensed
activities.
§ 3573.12. Statute of
limitations
An action shall not be brought under R.S. 9:3573.10 or 3573.11 after four years after the date of the execution of the contract for
services to which the action relates.
§ 3573.13. Criminal
penalty
A. A person who willfully violates any provision of this Part is
guilty of a misdemeanor and upon conviction may be sentenced to pay a fine of
not less than two hundred fifty dollars nor more than five thousand dollars, or
to imprisonment not exceeding one year, or both.
B. The commissioner through an administrative action, or the
district attorney of any judicial district may maintain an action to enjoin
violations of this Part.
C. Costs and reasonable attorney fees shall be awarded to the
commissioner or a district attorney in all injunctive actions where the
commissioner or district attorney successfully enforces this Part.
§ 3573.14. Burden of
proving exemption
A. In an action under this Part, the burden of proving an
exemption under R.S. 9:3573.2(B) shall be on the person claiming the exemption.
B. Repealed by Acts 2004, No. 79, § 2, eff. May 28, 2004.
§ 3573.15. Remedies
cumulative
The remedies provided by this Part are in addition to any other
remedies provided by law.
§ 3573.16. Civil money
penalties
A person who violates a provision of this Part may be fined up to
one thousand dollars for each violation. The commissioner may maintain a civil
action in a court of competent jurisdiction to recover such fines, together
with his costs and attorney fees incident to such action.
§ 3573.17. Notification
or service
Whenever a person becomes
licensed by the commissioner, pursuant to this Part, such person shall provide
a physical address to the commissioner that may be used as a basis for service
or notification of any order or other issuance or communication by the
commissioner to such person. Whenever such person changes his physical address,
he must notify the commissioner at least thirty days prior to the change.
Notification or service of any order, notice, or other issuance or
communication by the commissioner by certified mail to the address most
recently provided to him by the person shall satisfy all requisites of service
required for any registration, administrative, enforcement, or other action,
undertaken by him pursuant to the Louisiana Administrative Procedure Act or
otherwise, in connection with such person.
§§ 3573.18 to 3573.26.
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§§ 3573.18 to 3573.26.
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Current through all 2006 First Extraordinary, Regular and Second
Extraordinary Session Acts
Case Law
I identified no significant cases construing the act.