DEBT ADJUSTMENT SERVICES

RSA tit. XXXVI, ch. 399-D

in effect

RSA 399-D:1 Definitions.

399-D:1. Definitions. In this chapter: I. "Applicant" means a person who applies for a principal office license under this chapter. II. "Branch office" means a business location within this state of a person required to be licensed under this chapter. Branch office does not include a person's principal office location. III. "Commissioner" means the bank commissioner. IV. "Compensation" means fees, fair-share contributions, and any financial or similar incentive. V. "Concessions" means assent to repayment of a debt on terms more favorable to an individual than the terms of the contract between the individual and a creditor. VI. "Control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Any person is presumed to control a company if such person: (a) Is a director, general partner, executive officer, or board of directors member; (b) Directly or indirectly has the right to vote 10 percent or more of a class of a voting security or membership interest, or has the power to sell or direct the sale of 10 percent or more of a class of voting securities or membership interest; (c) In the case of a limited liability company, is a managing member; or (d) In the case of a partnership, has the right to receive upon dissolution, or has contributed, 10 percent or more of the capital. VII. "Creditor" means a person who regularly extends credit that is subject to an interest or other charge or is payable, by written agreement, in more than 4 installments. VIII. "Debt adjuster" means a person engaged in the business of debt adjustment. IX. "Debt adjustment" means: (a) Providing debt management advice or counseling to debtors for direct or indirect compensation; (b) Creating debt adjustment contracts for debtors for direct or indirect compensation; (c) Negotiating with one or more creditors on behalf of a debtor for direct or indirect compensation; (d) Receiving for direct or indirect compensation as an agent of a debtor, monetary value or evidences thereof for the purpose of distributing, or supervising, coordinating, or controlling the distribution of, such money or evidences thereof among creditors in full or partial payment of obligations of the debtor; (e) A person otherwise engaging in the debt adjustment business including but not limited to acting upon outstanding debt adjustment contracts is providing debt adjustment within the intent of this chapter; or (f) Any person that serves as an intermediary between a debtor and one or more creditors of the debtor for the purpose of obtaining concessions. (1) An intermediary includes but is not limited to any person that: (A) Engages in the business of mortgage loan loss mitigation; and (B) Is not subject to RSA 397-A. (2) An intermediary does not include any person specifically exempted pursuant to RSA 397-A:4. X. "Debt adjustment contract" means a written agreement between a debt adjuster and a debtor to provide one or more debt adjustment services, including but not limited to a debt management plan, debt repayment plan, or debt settlement plan. XI. "Debt management plan" means a proposed contract which indicates that: (a) Regular, periodic payments will be made to a creditor by or on behalf of a debtor to whom debt adjustment services are being provided; and (b) The debtor's creditors will reduce financing charges or fees for late payment, default, or delinquency. XII. "Debt repayment plan" means a proposed payment schedule created by a debt adjuster to reduce outstanding debt with one or more creditors over a fixed period of time. XIII. "Debt settlement plan" means a proposed contract which indicates that: (a) A lump sum payment will be made to a creditor by or on behalf of a debtor to whom debt adjustment services are being provided; and (b) The debtor's creditors will settle the debt for less than the principal amount of the debt. XIV. "Debtor" means a person who owes or is obligated to another or others. XV. "Department" means the banking department. XVI. "Direct owner" means any person, including an individual, that owns, beneficially owns, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the applicant or licensee. XVII. "Fair share" means voluntary contributions paid to the licensee by the creditor for collecting funds from debtors pursuant to debt adjustment contracts or debt management plans. XVIII. "Fiduciary" means a person who is a trustee, executor or executrix, administrator, guardian, receiver, or conservator, or who conducts similar activity. XIX. "Financial institution" means a bank, savings institution, credit union, trust company, or a person licensed under RSA 361-A, RSA 397-A, or RSA 399-A. XX. "Financial services" or "financial services-related" means securities, commodities, banking, insurance, consumer lending, money transmission, debt adjustment, or real estate, including, but not limited to, acting as or being associated with a bank or savings association, credit union, mortgage lender, mortgage broker, mortgage servicer, real estate salesperson or agent, closing agent, title company, or escrow agent. XXI. "Indebtedness" means the outstanding principal debt as stated in the contract, excluding any current or projected interest or fees. XXII. "Indirect owner" means, with respect to direct owners and other indirect owners in a multilayered organization: (a) In the case of an owner that is a corporation, each of its shareholders that beneficially owns, has the right to vote, or has the power to sell or direct the sale of, 25 percent or more of that corporation. (b) In the case of an owner that is a partnership, all general partners and those limited and special partners that have the right to receive upon dissolution, or have contributed, 25 percent or more of the partnership's capital. (c) In the case of an owner that is a trust, the trust, each trustee, and each beneficiary of 25 percent or more of the trust. (d) In the case of an owner that is a limited liability company ("LLC"): (1) Those members that have the right to receive upon dissolution, or have contributed, 25 percent or more of the LLC's capital; and (2) If managed by elected managers, all elected managers. (e) In the case of an indirect owner, the parent owners of 25 percent or more of their subsidiary. XXIII. "Licensee" means a person duly licensed by the commissioner under the provisions of this chapter. XXIII-a. "Nationwide Multistate Licensing System and Registry" means a national licensing system and facility developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, or their successors, for the licensing and registration of mortgage loan originators, mortgage lenders, mortgage servicers, mortgage brokers, and other non-depository financial service licensees, including debt adjusters. XXIV. "Person" means an individual, corporation, business trust, estate, trust, partnership, association, 2 or more persons having a joint or common interest, or any other legal or commercial entity however organized. XXV. "Principal" means an owner with 10 percent or more ownership interest in the applicant or licensee, a corporate officer, director, member, general and limited liability partner, limited partner with 10 percent or more ownership interest, trustee, beneficiary of 10 percent or more of the trust that owns the applicant or licensee, indirect owner, senior manager, and any person occupying similar status or performing similar functions. XXVI. "Principal office" means the main office location of a person required to be licensed under this chapter. XXVII. "Publicly traded" means a company whose securities are traded on a securities exchange system approved and supervised by the Securities and Exchange Commission, including but not limited to the NYSE, AMEX, BSE, and NASDAQ. The term also includes a public reporting company that is subject to sections 12 or 15(d) of the Securities Exchange Act of 1934. XXVIII. "Senior manager" means any officer of record, assistant vice president or higher, office or branch manager, director of operations, or other position the responsibilities of which provide such employee with the discretion or ability to set policy or manage or direct affairs of the licensee as a whole, or of any division or department or unit of the licensee. XXIX. "Significant event" means: (a) Filing for bankruptcy or reorganization; (b) Criminal felony indictment or conviction of any of the licensee's principals; (c) Receiving notification of a license denial, cease and desist, consent agreement or order, suspension, or revocation, or any other formal administrative action in any state against the licensee; (d) Receiving notification of any enforcement action or investigation by the attorney general of the state of New Hampshire or of any other state pursuant to any consumer protection statute, and the reasons thereof, except routine investigations of consumer complaints; or (e) Entering into a consent agreement, settlement agreement, memorandum of understanding, or similar agreement with any regulatory body pertaining to the licensee's practices. Source. 2016, 151:1, eff. Jan. 1, 2017. 2018, 196:11, 12, eff. Aug. 7, 2018. 2019, 36:27, eff. May 15, 2019. 2021, 194:7, eff. Oct. 9, 2021.

RSA 399-D:2 License Required.

399-D:2. License Required. Any person not exempt under RSA 399-D:3 that, in its own name or on behalf of other persons, engages in the business of debt adjustment in this state or with persons located in this state shall obtain a license from the department. Licensure in the state of New Hampshire under this chapter does not constitute a finding that the commissioner has passed in any way upon the merits or qualifications of such person or that the commissioner has recommended or given approval to any person. It is unlawful to make, or cause to be made, to any prospective purchaser, customer, or client any representation inconsistent with the provisions of this section. Any license fee required by this chapter shall be paid before a license becomes effective. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:3 Exemptions.

399-D:3. Exemptions. The provisions of this chapter shall not apply to: I. Any attorney admitted to the practice of law in this state, when engaged in such practice. II. Any financial institution authorized to transact business in this state, which performs debt adjuster activity in the regular course of its principal business. III. Any fiduciary subject to the jurisdiction of another agency, a court of competent jurisdiction, or subject to RSA 547 through RSA 567-A. IV. Any employee of a licensee when performing duties in the regular course of employment. V. Other persons not within the intent of this chapter as the commissioner may designate by rule or order. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:4 Application and Fees.

399-D:4. Application and Fees. I. (a) To be considered for licensing, each person shall complete and file with the department one verified application through the Nationwide Multistate Licensing System and Registry, using the Nationwide Multistate Licensing System and Registry form which shall include, but not be limited to, the following information: (1) The primary business address of the applicant; (2) The applicant's tax identification number; (3) The address of its principal office and all branch offices located or to be located within the state; (4) The trade name, if any, under which the applicant proposes to conduct such business and evidence of authority to use the trade name in New Hampshire; (5) The articles of incorporation or organization or partnership agreement; (6) The name and address of the New Hampshire resident agent if the applicant is a foreign entity; (7) A financial statement as described in subparagraph II(e); (8) A consent to service of process as described in paragraph V; (9) A list of the principals of the applicant and each principal shall provide his or her social security number and shall authorize the commissioner to conduct a background check; (10) A blank copy of the contract intended for use between the licensee and the debtor; and (11) Any other information that the commissioner may require including, but not limited to, the applicant's form and place of organization, the applicant's proposed method of doing business, the qualifications and business history of the applicant and its principals, and the applicant's financial condition and history. (b) The applicant shall disclose whether the applicant or any of its principals has ever been issued or been the subject of an injunction or administrative order, has ever been convicted of a misdemeanor involving the financial services industry or any aspect of the financial services business, or has ever been convicted of any felony. II. (a) The license issued for the licensee's principal place of business shall be referred to as a "principal office license." Each additional authorization to conduct business issued for debt adjustment occurring in a location in this state that is separate from the licensee's principal place of business shall be referred to as a "branch office." [Paragraph II(b) effective until October 1, 2027; see also paragraph II(b) set out below.] (b) Each license application shall be accompanied by a nonrefundable application fee of $500 for the principal office and $500 for each branch office. Sums collected under this chapter shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the commissioner, consumer credit administration division. [Paragraph II(b) effective October 1, 2027; see also paragraph II(b) set out above.] (b) Each license application shall be accompanied by a nonrefundable application fee of $750 for the principal office and $500 for each branch office. Sums collected under this chapter shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the commissioner, consumer credit administration division. (c) Each applicant shall submit detailed financial information sufficient for the commissioner to determine the applicant's ability to conduct the business of a debt adjuster with financial integrity. (d) The application shall include a statement of net worth in all cases and an applicant shall demonstrate and maintain a positive net worth computed in accordance with generally accepted accounting principles. Net worth statements provided in connection with a license application under this section shall be subject to review and verification during the course of any examination or investigation conducted under the authority of RSA 399-D:12. (e) The application shall include a financial statement that shall be prepared in accordance with generally accepted accounting principles with appropriate note disclosures. If the financial statement is not audited, a certification statement shall be attached and signed by a duly authorized officer of the licensee. The certification statement shall state that the financial statement is true and accurate to the best of the officer's belief and knowledge. Financial statements provided in connection with a license application under this section shall be subject to review and verification during the course of any examination or investigation conducted under this chapter. (1) For profit entities: An applicant's financial statement, except for nonprofit organizations, shall include a balance sheet, income statement, statement of changes in owners' equity, cash flow statement, and statement of net worth. If the financial statement is more than 6 months old, the applicant shall also submit an interim balance sheet and income statement not more than 3 months old. (2) For nonprofit organizations: An applicant's financial statement shall include a statement of financial condition, statement of activities, statement of cash flow, and, if applicable, statement of functional expenses. If the financial statement is more than 6 months old, the applicant shall also submit an interim statement of financial condition and statement of activities not more than 3 months old. III. (a) Unless the applicant is a publicly traded corporation, the department shall complete a background investigation and criminal history records check on the applicant's principals. If the applicant is a subsidiary, the department shall complete a background investigation and criminal history records check on individuals who are indirect owners. For nonprofit organizations, the department shall complete a background investigation and criminal history records check on each member of the board of directors. (b) The persons described in subparagraph (a) shall submit to the department a criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person's criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years. (c) The department shall submit the criminal history records release form to the New Hampshire division of state police, which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph. (d) The department may require the applicant or licensee to pay the actual costs of each background investigation and criminal history records check. (e) The department may rely on criminal records checks reported through a national licensing facility in lieu of subparagraphs (b) and (c). IV. (a) Each debt adjuster applicant shall post a continuous surety bond in the amount of $25,000. The surety bond shall be payable to the state of New Hampshire and the bank commissioner of the state of New Hampshire for the benefit of any person who is damaged by any violation of this chapter and shall be conditioned upon the licensee's compliance with each provision of this chapter. (b) Surety bonds shall include a provision requiring the surety to give written notice to the commissioner 30 days in advance of the cancellation or termination of the bond. (c) Every bond shall provide that no recovery may be made against the bond unless the state makes a claim for recovery or the person brings suit naming the principal within 6 years after the act upon which the recovery or suit is based. The obligations of the surety shall survive the bankruptcy, insolvency, liquidation, or reorganization of the licensee, including, without limitation, any bankruptcy, insolvency, liquidation, or reorganization commenced by or against the licensee under any applicable state or federal law, including the United States Bankruptcy Code. (d) When an action is commenced on a licensee's bond, the licensee shall immediately file a new bond. Immediately upon recovery upon any action on the bond, the licensee shall file a new bond or the license shall be automatically suspended at the end of such 30-day period. V. Every applicant for licensing under this chapter shall file with the commissioner irrevocable consent appointing the commissioner to receive service of any lawful process in any noncriminal suit, action, or proceeding against the applicant or the applicant's successor, executor, or administrator which arises under this chapter or any rule or order under this chapter after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who has filed such a consent in connection with a previous application need not file another. When any person, including a nonresident of this state, engages in conduct prohibited or made actionable by this chapter or by any rule or order under this chapter, and such person has not filed a consent to service of process under this section and personal jurisdiction over such person cannot otherwise be obtained in this state, that conduct shall be considered equivalent to such person's appointment of the commissioner to receive service of any lawful process. Service may be made by leaving a copy of the process in the office of the commissioner along with $5, but is not effective unless: (a) The plaintiff, who may be the attorney general in a suit, action, or proceeding instituted by him or her, immediately sends a notice of the service and a copy of the process by registered mail to the defendant or respondent at such person's last address on file with the commissioner; and (b) The plaintiff's affidavit of compliance with this paragraph is filed in the case on or before the return day of the process, if any, or within such further time as the court allows. VI. Applicants shall provide policies for compliance with state and federal laws. VII. The commissioner may license or register individuals or firms by means of or through the facilities of a national organization which facilitates registration and licensing on a nationwide basis. [Paragraph II(b) effective until October 1, 2027; see also paragraph II(b) set out below.] [Paragraph II(b) effective October 1, 2027; see also paragraph II(b) set out above.] Source. 2016, 151:1, eff. Jan. 1, 2017. 2018, 318:34, eff. Aug. 24, 2018. 2019, 36:28-30, eff. May 15, 2019. 2021, 194:8, eff. Oct. 9, 2021. 2026, 294:21, eff. Oct. 1, 2027.

RSA 399-D:5 License Grant and Renewal.

399-D:5. License Grant and Renewal. I. Upon the applicant's filing of the complete application, and payment of the required fee, the commissioner shall have, in accordance with RSA 541-A:29, up to 120 days to investigate and determine whether the applicant's financial resources, experience, personnel, and record of past or proposed conduct warrant the public's confidence and the issuance of a license. II. If the commissioner determines that the applicant meets the requirements of this chapter, then the commissioner shall issue a license permitting the applicant to engage in the business of debt adjustment in accordance with the laws of this state. III. Each license issued under the provisions of this chapter shall state the name and address of the principal office of the licensee and, if the license is a branch office license, the name and address of the branch office location for which the license is issued. IV. If a licensee is a person other than a natural person, the license issued to it shall entitle all officers, directors, members, partners, trustees, and employees, to engage in the business of debt adjustment; provided that one officer, director, member, partner, employee, or trustee of such person shall be designated in the license as the individual to be contacted for purposes of this chapter. V. If the licensee is a natural person, the license shall entitle all employees of the licensee to engage in the business of debt adjustment. For purposes of this paragraph, employee shall not include an independent contractor. VI. A license issued under this chapter shall not be transferable or assignable between persons without obtaining the approval of the commissioner before the assignment or transfer. VII. Each license shall remain in force until it has been surrendered, revoked, or suspended in accordance with the provisions of this chapter, or expires in accordance with the provisions of this chapter. Each license shall expire on December 31 of each calendar year. VIII. If a person holds a valid license under this section and is in compliance with this chapter and the rules pursuant to this chapter, such licensee may renew the license by paying the required fee to the department on or before December 31 for the ensuing year that begins on January 1. Failure to renew the license shall result in the license terminating on December 31. VIII-a. The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year. IX. A renewal fee shall be submitted with the application for renewal as follows: [Paragraph IX(a) effective until October 1, 2027; see also paragraph IX(a) set out below.] (a) $500 for the principal office license; and [Paragraph IX(a) effective October 1, 2027; see also paragraph IX(a) set out above.] (a) $750 for the principal office license; and (b) $500 for each branch office. [Paragraph IX(a) effective until October 1, 2027; see also paragraph IX(a) set out below.] [Paragraph IX(a) effective October 1, 2027; see also paragraph IX(a) set out above.] Source. 2016, 151:1, eff. Jan. 1, 2017. 2024, 368:5, eff. Oct. 22, 2024. 2026, 294:22, eff. Oct. 1, 2027.

RSA 399-D:6 License Denial or Abandonment; Appeal.

399-D:6. License Denial or Abandonment; Appeal. I. If the commissioner determines that the applicant fails to meet the requirements of this chapter, the commissioner shall immediately, in writing, notify the applicant of that determination. II. The commissioner may deny a license application if it is in the public interest and the applicant or the applicant's principal: (a) Has filed an application for licensing which was incomplete in any material respect; (b) Is the subject of an order entered within the past 5 years by this state, any other state, or federal regulator denying, suspending, or revoking a license or registration; (c) Is permanently, preliminarily, or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of lending, collection, or debt adjustment activities; (d) Is not qualified on the basis of such factors as experience, knowledge, and financial integrity; or (e) Should not be licensed for other good cause shown. III. Applicants may appeal a license denial in accordance with RSA 541-A and rules of the commissioner adopted thereunder. IV. Applicants may petition the banking department for a rehearing in accordance with RSA 541 if the decision in an appeal conducted pursuant to paragraph III affirms a denial of a license application. [Paragraph V effective until October 1, 2026; see also paragraph V set out below.] V. The commissioner may deem abandoned and withdraw any application for licensure made pursuant to this chapter if the applicant fails to respond in writing within 180 calendar days to a written request from the commissioner requesting a response. Such request shall be sent via certified mail to the last known address of the applicant that is on file with the commissioner. [Paragraph V effective October 1, 2026; see also paragraph V set out above.] V. The commissioner may deem abandoned and withdraw any application for licensure made pursuant to this chapter if the applicant fails to respond in writing within 180 calendar days to any communication from the department, including but not limited to any communication made through the nationwide multistate licensing system and registry, requesting a response. VI. No application for renewal shall be denied without reasonable cause and the right of appeal pursuant to RSA 541-A and RSA 541. [Paragraph V effective until October 1, 2026; see also paragraph V set out below.] [Paragraph V effective October 1, 2026; see also paragraph V set out above.] Source. 2016, 151:1, eff. Jan. 1, 2017. 2026, 294:6, eff. Oct. 1, 2026.

RSA 399-D:7 License Surrender.

399-D:7. License Surrender. I. A licensee who ceases to engage in the business of a debt adjuster at any time for any cause shall surrender such license and within 15 calendar days of such cessation: (a) Publish a notice of such cessation in a newspaper of general circulation in the licensee's market area; and (b) File an annual report pursuant to RSA 399-D:9, I(a). II. Surrender of a license shall not take effect until the commissioner deems the surrender process complete. III. Failure to comply with the provisions of this section and rules adopted under this section shall be cause for denial of future license applications and the imposition of penalties under RSA 399-D:21. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:8 Continuing Obligation to Update.

399-D:8. Continuing Obligation to Update. I. Licensees shall update information on file with the commissioner. If any information filed with the commissioner becomes materially inaccurate, the licensee shall, within 30 days of the event necessitating the update, submit an amendment to its application records that will correct the information on file with the commissioner. II. (a) A licensee shall submit written notification to the department of the addition or deletion of a principal, and shall provide the name and address of each new principal no later than 30 days after such change. (b) Each new principal shall authorize the commissioner to conduct a background investigation and a criminal history records check. (c) The commissioner shall investigate management and ownership changes including, but not limited to, each principal's qualifications and business history. (d) The licensee shall investigate and disclose any injunction or administrative order that has been issued against the principal and whether the principal has been convicted of a misdemeanor involving financial services or a financial services-related business, or any fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, or extortion, or a conspiracy to commit any of these offenses, or convicted of any felony, prior to the commissioner's approval of such change. III. Licensees shall provide 30 days' written notice to the department: (a) Of any change in location and the commissioner shall endorse such change on the license; or (b) Of the closing of any location. IV. No licensee shall transact any business provided for by this chapter under a trade name or any other name different from the name stated in its license or branch office license without immediately notifying the commissioner, who shall then amend the license accordingly. V. Significant events shall be reported to the department in writing within 10 calendar days. VI. Any officer, owner, manager, or agent of any licensee, and any person controlling or having a contract under which he or she has a right to control such a licensee, whether exclusively or otherwise, and any person with executive authority over or in charge of any segment of such a licensee's affairs, shall reply promptly in writing, or in other designated form, to any written inquiry from the commissioner requesting a reply. The commissioner may require that any communication made to him or her under this section be verified. Source. 2016, 151:1, eff. Jan. 1, 2017. 2019, 36:31, eff. May 15, 2019.

RSA 399-D:9 Reporting and Filing Requirements.

399-D:9. Reporting and Filing Requirements. I. (a) Each licensee shall file, under oath, an annual report through the Nationwide Multistate Licensing System and Registry on or before March 31 each year concerning operations for the preceding calendar year or license period ending December 31 in the form prescribed by the commissioner. (b) Each licensee shall also file, under oath, its financial statement through the Nationwide Multistate Licensing System and Registry within 90 days from the date of its fiscal year end. If the financial statement is not audited, a certification statement shall be attached and signed by a duly authorized officer of the licensee. The certification statement shall state that the financial statement is true and accurate to the best of the officer's belief and knowledge: (1) For profit entities: The financial statement shall be prepared in accordance with generally accepted accounting principles with appropriate note disclosures and, shall include a balance sheet, income statement, statement of changes in owners' equity, and a cash flow statement. (2) For nonprofit organizations: The financial statement shall be prepared in accordance with generally accepted accounting principles with appropriate note disclosures and shall include a statement of financial condition, a statement of activities, a statement of cash flow and, if applicable, a statement of functional expenses. II. The commissioner shall publish an analysis of the information required in the licensee's annual report as a part of the commissioner's annual report. III. Any licensee or person failing to file either the annual report or the financial statement required by this section within the time prescribed shall pay to the commissioner a penalty of $25 for each calendar day the annual report or financial statement is overdue to a maximum penalty of $2,500 per report or statement and shall be subject to suspension or revocation of its license. IV. In addition to the annual report and financial statement required by this section, the commissioner may require such regular or special reports as the commissioner may deem necessary to the proper supervision of licensees under this chapter. V. A document is filed when it is received by the commissioner. If any filing deadline date falls on a weekend or on a New Hampshire state or federal legal holiday, the due date shall be automatically extended to the next business day following such weekend or holiday. Electronic filings, when received by the commissioner, are: (a) Deemed filed; (b) Prima facie evidence that a filing has been duly authorized and made by the signatory on the application or document; (c) Admissible in any civil or administrative proceeding under this chapter; and (d) Admissible in evidence in accordance with the rules of a superior court in any action brought by the attorney general under this chapter. Source. 2016, 151:1, eff. Jan. 1, 2017. 2021, 194:9, eff. Oct. 9, 2021.

RSA 399-D:10 Record Keeping Requirements.

399-D:10. Record Keeping Requirements. I. The licensee shall maintain such books and records as will enable the department to determine whether the licensee's business is in compliance with the provisions of this chapter and the rules adopted pursuant to it. Such records shall be maintained in a readily accessible location and made available for examination at the licensee's New Hampshire principal office or its New Hampshire branch office location or the office of its New Hampshire agent for a period of at least 7 years after the licensee's final transaction on a debt adjustment contract. II. A licensee may maintain its records in electronic format if, upon request, the licensee provides the commissioner with: (a) A full explanation of the programming of any data storage or communications systems in use; and (b) Information from any books, records, electronic data processing systems, computers, or any other information storage system in the form requested by the commissioner. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:11 Consumer Inquiries.

399-D:11. Consumer Inquiries. I. Consumer complaints naming licensees under this chapter, which are filed in writing with the office of the commissioner, shall be forwarded via electronic mail or certified or registered mail to the licensee for response within 10 days of receipt by the department. Licensees shall, within 10 days after receipt of such complaint, send a written acknowledgment thereof to the consumer and the department. Not later than 30 days following receipt of such complaint, the licensee shall conduct an investigation of the complaint and either: (a) Make appropriate corrections in the account of the consumer and transmit to the consumer and the department written notification of such corrections, including documentary evidence thereof; or (b) Transmit a written explanation or clarification to the consumer and the department which sets forth, to the extent applicable, the reasons why the licensee believes its actions are correct, including copies of documentary evidence thereof. II. A licensee who fails to respond to consumer complaints as required by this section within the time prescribed shall pay to the commissioner a penalty of $50 for each day such response is overdue. For purposes of this section, the date of transmission shall be the date such response is received by the commissioner. III. (a) Licensees which, because of extenuating circumstances beyond the control of the licensee, are unable to comply with the time frames prescribed in this section, may make written request to the commissioner for a waiver of such time frames. Waivers shall not be granted or considered unless the request for the waiver: (1) Is received by the department within 20 days following the licensee's receipt of the complaint; (2) Specifies the reason for the request; and (3) Specifies a date certain by which the licensee shall comply with the provisions of this section. (b) Requests for waivers shall be either granted or denied within 5 days of receipt by the department. Source. 2016, 151:1, eff. Jan. 1, 2017. 2018, 207:8, 9, eff. Aug. 7, 2018. 2021, 194:27, eff. Oct. 9, 2021.

RSA 399-D:12 Examinations and Investigations.

399-D:12. Examinations and Investigations. I. The commissioner or the commissioner's duly authorized representative shall, in accordance with RSA 383:9 and, with or without notice to the licensee or person, examine the business affairs of any licensee or any other person subject to this chapter, whether licensed or not, or more often when necessary, as the commissioner deems necessary to determine compliance with this chapter, the rules adopted pursuant to it and any federal acts and regulations to which it is subject, including the Consumer Credit Protection Act, 15 U.S.C. section 1601, et seq., as amended. In determining compliance, the commissioner or the duly authorized representative may examine the books, accounts, records, files, and other documents, whether electronically stored or otherwise, and any other matters of any licensee or person. The commissioner or the duly authorized representative shall have and be given free access to the office and places of business, files, safes, and vaults of all such persons, and may require the attendance of any person to examine him or her under oath relative to such debt adjustment activity or such business or to the subject matter of any examination or investigation and may require the production of books, records, files, accounts, and papers of such persons. II. The commissioner may, in his or her discretion, accept all or part of a report of examination of a debt adjuster, certified to by the regulatory supervisory official of another state. To avoid unnecessary duplication of examinations, the commissioner, insofar as he or she deems it practicable in administering this section, may cooperate with the regulators of other states, the Federal Trade Commission, other federal regulators, or their successors in conducting examinations and investigations. III. The department may subpoena witnesses and administer oaths and compel, by subpoena duces tecum, the production of all books, records, files, and other documents and materials whether electronically stored or otherwise relevant to its investigation at any time in any matter over which the department has jurisdiction, control, or supervision pertaining to the provisions of this chapter. IV. Every person being examined, and all of the officers, directors, employees, agents, and representatives of such person shall make freely available to the commissioner or the commissioner's examiners the accounts, records, documents, files, information, assets, and matters in their possession or control relating to the subject of the examination and shall facilitate the examination. V. The expense of such examination shall be chargeable to and paid by the licensee or person being examined. The payment shall be calculated by the same method as for payments by institutions for the cost of examinations under RSA 383:11. VI. (a) Those licensees or persons, including those that maintain their files and business documents in another state shall : (1) Deliver to the commissioner a list of all New Hampshire consumers who have contracted with the licensee or with whom the licensee is otherwise engaged in business regulated under this chapter, and other requested lists summarizing the business of the licensee, within 7 days of receipt of the request; and (2) Deliver to the commissioner files selected by the commissioner from the list delivered in subparagraph (a)(1), and any other files or documents requested, within 21 days of receipt of the request. (b) Failure to provide files or documents within the time established by this paragraph shall subject a licensee or person to a fine of $50 per day for each day that the files or documents are not produced. Failure to provide files or documents within 60 days after receipt of the request shall be sufficient cause for license revocation, suspension, or denial, or other penalties under this chapter. VII. The commissioner or the commissioner's duly authorized representative may investigate at any time any person that the commissioner reasonably believes is engaged in the business of debt adjustment, or is participating in such business as principal, agent, broker, or otherwise, or any person who the commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, or any rule or order under this chapter, whether such person shall claim to be within the authority or beyond the scope of this chapter. VIII. In any investigation to determine whether any person has violated or is about to violate this chapter or any rule or order under this chapter, upon the commissioner's finding that the person violated this chapter or a rule or order under this chapter, or the person charged with the violation defaults, the commissioner may recover the cost of the investigation, in addition to any other penalty provided for under this chapter. IX. If the commissioner or examiner finds any accounts or records to be inadequate, or kept or posted in a manner not in accordance with generally accepted accounting principles, the commissioner may employ experts to reconstruct, rewrite, post, or balance them at the expense of the person being examined if such person has failed to maintain, complete, or correct such records or accounting after the commissioner or examiner has given him or her written notice and a reasonable opportunity to do so. X. (a) Upon receipt of a written report of examination, the licensee shall have 30 days or such additional reasonable period as the commissioner for good cause may allow, within which to review the report, recommend any changes, and set forth in writing the remedial course of action the licensee will pursue to correct any reported deficiencies outlined in the report. (b) If so requested by the person examined, within the period allowed in subparagraph (a), or if deemed advisable by the commissioner without such request, the commissioner shall hold a closed hearing relative to the report and shall not file the report in the department until after such closed hearing and issuance of his or her order thereon. If no such closed hearing has been requested or held, the examination report, with such modifications, if any, thereto as the commissioner deems proper, shall be accepted by the commissioner and filed upon expiration of the review period provided for in subparagraph (a). The report shall in any event be so accepted and filed within 6 months after final hearing thereon. XI. All reports pursuant to this section shall be confidential and shall not be available for public inspection. The comments and recommendations of the examiner shall also be confidential information and shall not be available for public inspection. XII. The commissioner may share information with state and federal regulators, and may share information with law enforcement agencies for the purposes of criminal investigations. Source. 2016, 151:1, eff. Jan. 1, 2017. 2019, 168:18, eff. Sept. 8, 2019. 2021, 51:4, eff. July 24, 2021.

RSA 399-D:13 Prohibitions; Fraud and Dishonesty.

399-D:13. Prohibitions; Fraud and Dishonesty. I. No person, in connection with the business of a debt adjuster, directly or indirectly shall: (a) Employ any device, scheme, or artifice to defraud; (b) Make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading; or (c) Engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person; or (d) Make fraudulent misrepresentations or circumvent or conceal any material information required to be provided to a debtor under the provisions of this chapter; or (e) Engage in dishonest or unethical practices in conducting the business of debt adjustment. II. No person shall: (a) Make or cause to be made in any document filed under this chapter or in any proceeding under this chapter any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect; (b) In connection with such statement, omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading; (c) Instruct, solicit, propose, or cause a person to sign another's signature on any document without legal authority; or (d) Solicit, accept, or execute any contract or other document related to any transaction that contains any blanks to be filled in after signing or initialing the contract or other document, except for forms authorizing the verification of application information or as otherwise expressly provided in this chapter. III. No person shall, in connection with a debt adjustment contract: (a) Purchase from a creditor any obligation of a debtor; (b) Operate as a collection agent on behalf of a creditor and as a debt adjuster on behalf of a debtor for the same debtor's account; (c) [Repealed.] (d) Receive or charge any fee in the form of a promissory note or other promise to pay, or receive or accept any wage assignment, mortgage, or other security for any fee, either as real or personal property; (e) Pay any compensation to any person for the referral of a debtor to his or her business or accept or receive any compensation for referring any debtor to any person for any reason; (f) Engage in the practice of law; (g) Perform or offer to perform any legal service; and (h) Give or offer to give any legal advice. IV. No person shall by any means represent or imply that such person's employees, on behalf of the debtor, may: (a) Authorize or be competent to furnish legal advice or perform legal services; or (b) Assume authority on behalf of any creditor or debtor; or (c) Accept a power of attorney authorizing such employee to employ or terminate the services of an attorney or to arrange the terms of, or compensate for, such services; or (d) Communicate with any debtor or creditor or any other person in the name of an attorney or upon the stationery of an attorney; or (e) Prepare any form or instrument which only an attorney is authorized to prepare; or (f) Borrow money from or pledge assets to any attorney; or (g) Refer any debtor to any particular attorney. Source. 2016, 151:1, eff. Jan. 1, 2017. 2019, 36:32, 51, II, eff. May 15, 2019.

RSA 399-D:14 Provisions Applicable to All Persons Under This Chapter.

399-D:14. Provisions Applicable to All Persons Under This Chapter. I. Each licensee shall: (a) Make a written contract with a debtor; and (b) Immediately furnish the debtor with a true copy thereof. II. Such contract shall include the following information : (a) A clear description of the services to be provided to the debtor; (b) A complete list of the debtor's obligations, as applicable; (c) A complete list of the creditors holding such obligations, as applicable; (d) The total charges agreed upon for the licensee's services; (e) The beginning date and expiration date of the contract, which shall not exceed 60 months; (f) A cancellation provision; (g) A prepayment provision, as applicable; and (h) Other information the commissioner may prescribe by rule. III. No licensee shall be entitled to any fee from the debtor until the debtor signs the contract. IV. The dollar amount of any direct or indirect compensation that is or will be received for debt adjustment services from parties other than the consumer, if applicable, shall be disclosed and agreed to in writing by the consumer prior to execution of a debt adjustment contract or agreement by the consumer. V. No licensee shall use, attempt to use, or make reference to, directly or indirectly, any word or phrase which states or implies that such licensee is bonded, approved, bonded by the state, or approved by the state. VI. Persons subject to this chapter shall be responsible for the supervision of their employees, agents, and branch offices. VII. No person shall advertise, print, display, publish, distribute, broadcast, or permit to be advertised, printed, displayed, published, distributed, or broadcast in any manner whatsoever, any statement or representation with regard to the rates, terms, or conditions for debt adjustment under the provisions of this chapter which is false, misleading, or deceptive. Any reference to the amount of a debt shall refer to the original principal amount. Any statement of the amount of an installment, or the rate or amount of interest charges required for any debt, shall comply with the provisions of the federal Consumer Credit Protection Act, 15 U.S.C. section 1601 et seq. VIII. This chapter, or any part thereof may be modified, amended, or repealed so as to effect a cancellation or alteration of any license, or right of a licensee hereunder, provided that such modification, amendment, or repeal shall not impair or affect the obligation of any preexisting lawful contracts between any licensee and any consumers. IX. A licensee shall include in every debt adjustment contract a notice, printed in type size equal to at least 12-point type, stating that the consumer or the debtor's attorney may file a complaint with the commissioner. X. Each licensee shall maintain a positive net worth at all times. XI. Persons subject to or licensed under this chapter shall abide by applicable federal laws, and regulations adopted thereunder, as amended, including the federal Consumer Credit Protection Act, 15 U.S.C. section 1601 et seq., and the laws, orders, and rules of this state. Any violation of such law, rule, or order shall be a violation of this chapter. XII. Examination expenses and fees, fines, penalties, and other moneys obliged to be paid to the department shall be paid within 14 days of receipt of notice by the licensee or other person or such later time as determined by the commissioner. XIII. No revocation, suspension, or surrender of any license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any obligors, and such contracts and all lawful charges thereon may be collected by the licensee, its successors, and assigns. XIV. All persons subject to or licensed under this chapter shall be qualified on the basis of such factors as experience, knowledge, and financial integrity to conduct business under this chapter. Source. 2016, 151:1, eff. Jan. 1, 2017. 2019, 36:33, 34, eff. May 15, 2019.

RSA 399-D:15 Provisions Applicable to Debt Management Plans Under This Chapter.

399-D:15. Provisions Applicable to Debt Management Plans Under This Chapter. I. Fees shall be amortized equally each month over the length of the contract. II. A licensee shall not be entitled to any fee until the contract has been in effect for at least 30 days, and thereafter, the monthly amortized fee may be charged at 30-day intervals for the term of contract, except in the event of prepayment or cancellation thereof. III. A licensee shall not receive any fee unless it receives the written acceptance of creditors which hold at least 25 percent of the debtor's total amount of indebtedness, and either: (a) At least 25 percent of the total number of creditors listed in the contract; or (b) A distribution of payment to at least 25 percent of the total number of creditors. IV. A creditor or its attorney shall have access to all records regarding such written acceptance as stated in paragraph III. V. The licensee's fees shall be based on the total indebtedness as stated in the contract and shall not exceed: (a) 10 percent when the plan of payment is for a period of 10 months or less; or (b) 12 1/2 percent when the plan of payment is for a period of more than 10 months but less than 18 months; or (c) 15 percent when the plan of payment is for a period of 18 months or more. VI. If the debtor gives the licensee 30 days' written notice of cancellation and such licensee performed all of its contractually required services, such licensee shall be entitled to a cancellation fee of the lesser of: (a) 5 percent of the remaining service charges that would have been collected over the term of the debt adjustment contract; or (b) $50. VII. If the debtor willfully defaults by failing to pay the contractually obligated payments for a period of 30 days and such licensee performed all of its contractually required services, such licensee shall be entitled to a cancellation fee of the lesser of: (a) 5 percent of the remaining service charges that would have been collected over the term of the debt adjustment contract; or (b) $50. VIII. The licensee shall notify the debtor's creditors or their attorneys in writing within 10 calendar days of cancellation. IX. The licensee shall remit funds to creditors, less the licensee's prorated fees within 10 calendar days of receipt of a complete monthly payment. X. The licensee shall provide the debtor with a written statement of the debtor's account: (a) Every 90 days; (b) Upon the debtor's verbal request at any time during the contract term; and (c) At the termination or cancellation of the contract. XI. No licensee shall execute a contract unless a completed, written budget analysis indicates the debtor can meet the requirements of the debt management plan. XII. Each licensee shall maintain a separate, pooled bank account for the debtors' benefit in which all debtors' payments shall be deposited within 24 hours of receipt thereof. All such payments shall remain in such bank account until the licensee remits funds to either a debtor or creditor thereof. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:16 Provisions Applicable to Debt Settlement Plans Under This Chapter.

399-D:16. Provisions Applicable to Debt Settlement Plans Under This Chapter. I. A licensee shall not be entitled to any fee until the contract has been in effect for at least 30 days, and thereafter, the monthly amortized fee may be charged at 30-day intervals for the term of contract, except in the event of prepayment or cancellation thereof. II. The licensee's fees shall be based on the total indebtedness as stated in the contract and shall not exceed 15 percent. III. The licensee shall remit funds to creditors, less the licensee's prorated fees within 10 calendar days of receipt of a negotiated settlement. IV. The licensee shall provide the debtor with a written statement of the debtor's account: (a) Every 90 days; (b) Upon the debtor's verbal request at any time during the contract term; and (c) At the termination or cancellation of the contract. V. No licensee shall execute a contract unless a completed, written budget analysis indicates the debtor can meet the requirements of the debt settlement plan. VI. Each licensee shall maintain a separate, pooled bank account for the debtors' benefit in which all debtors' payments shall be deposited within 24 hours of receipt thereof. All such payments shall remain in such bank account until the licensee remits funds to either a debtor or creditor thereof. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:17 Provisions Applicable to Debt Repayment Plans Under This Chapter.

399-D:17. Provisions Applicable to Debt Repayment Plans Under This Chapter. I. If the debtor gives the licensee 30 days' written notice of cancellation and such licensee performed all of its contractually required services, such licensee shall be entitled to a cancellation fee of the lesser of: (a) 5 percent of the remaining service charges that would have been collected over the term of the debt adjustment contract; or (b) $50. II. If the debtor willfully defaults by failing to pay the contractually obligated payments for a period of 30 days and such licensee performed all of its contractually required services, such licensee shall be entitled to a cancellation fee of the lesser of: (a) 5 percent of the remaining service charges that would have been collected over the term of the debt adjustment contract; or (b) $50. III. The licensee shall notify the debtor's creditors or their attorneys in writing within 10 calendar days of cancellation. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:18 Powers of the Commissioner.

399-D:18. Powers of the Commissioner. I. The commissioner shall have the power to subpoena witnesses and administer oaths in any adjudicative proceeding and to compel, by subpoena duces tecum, the production of documents, papers, books, records, files, and other evidence, whether electronically stored or otherwise, before the commissioner in any matter over which the commissioner has jurisdiction, control, or supervision pertaining to the provisions of this chapter. The commissioner shall have the power to administer oaths and affirmation to any person whose testimony is required. If any person shall refuse to obey any such subpoena or to give testimony or to produce evidence as required thereby, any justice of the superior court may, upon application and proof of such refusal, order the issuance of a subpoena, or subpoena duces tecum, out of the superior court, for the witness to appear before the superior court to give testimony, and to produce evidence as required thereby. Upon filing such order in the office of the clerk of the superior court, the clerk shall issue such subpoena, as directed, requiring the person to whom it is directed to appear at the time and place therein designated. If any person served with any such subpoena shall refuse to obey the same, and to give testimony, and to produce evidence as required thereby, the commissioner may apply to any justice of the superior court who, after proof of such refusal, shall issue such citation, directed to any sheriff, for the arrest of such person, and, upon such person's being brought before such justice, proceed to a hearing of the case. Any person who refuses to comply with a subpoena shall be subject to a fine not exceeding $10,000 or by imprisonment, or both. II. The commissioner may adopt rules, pursuant to RSA 541-A, relative to the administration and enforcement of this chapter. III. The commissioner may prepare, alter, or withdraw such forms as are necessary to comply with the provisions of this chapter, including personal disclosure statements and authorizations to meet the requirements of this chapter. IV. The commissioner may issue, amend, or rescind such orders as are reasonably necessary to carry out the provisions of this chapter. V. The commissioner may, for good cause shown, abate all or a portion of delinquency penalties assessed under this chapter. VI. All actions taken by the commissioner pursuant to this chapter shall be taken only when the commissioner finds such action necessary or appropriate to the public interest or for the protection of consumers and consistent with the purposes fairly intended by the policy and provisions of this chapter. VII. In adopting rules, preparing forms, setting standards, and in performing examinations, investigations, and other regulatory functions authorized by the provisions of this chapter, the commissioner may cooperate, and share information pursuant to confidentiality agreements, with regulators in this state and with regulators in other states and with federal regulators in order to implement the policy of this chapter in an efficient and effective manner and to achieve maximum uniformity in the form and content of applications, reports, and requirements for debt adjusters, where practicable. VIII. The commissioner may set fees to be charged to cover the reasonable costs of copying documents and producing reports. Source. 2016, 151:1, eff. Jan. 1, 2017. 2019, 36:35, eff. May 15, 2019.

RSA 399-D:19 Order to Show Cause.

399-D:19. Order to Show Cause. I. The commissioner may issue an order: (a) Requiring a person to whom any license has been granted or any person under the commissioner's jurisdiction to show cause why the license should not be revoked, suspended, or penalties imposed, or both, for violations of this chapter; (b) Barring any person from licensure if it is in the public interest and the applicant, respondent, licensee, any partner, officer, member, director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the applicant, respondent, or licensee: (1) Has violated any provision of this chapter or rules adopted under this chapter; (2) Has not met the standards established in this chapter; (3) Has filed an application for licensing which as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact; (4) Has made a false or misleading statement to the commissioner or in any reports to the commissioner; (5) Has made fraudulent misrepresentations, has circumvented or concealed, through whatever subterfuge or device, any of the material particulars or the nature thereof required to be stated or furnished to a consumer under the provisions of this chapter; (6) Is the subject of an order entered within the past 5 years by this state, any other state, or federal regulator denying, suspending, or revoking licenses or registration; (7) Is permanently, preliminarily, or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of money transmission, lending, or collection activities; (8) Is not qualified on the basis of such factors as experience, knowledge, and financial integrity; (9) Has engaged in dishonest or unethical practices in the conduct of the business of money transmission; (10) Has violated applicable federal laws or rules thereunder; (11) Has made an unsworn falsification under RSA 641:3 to the commissioner; or (12) For other good cause shown. II. (a) The order shall give reasonable notice of the opportunity for a hearing and shall state the reasons for the issuance of the order. (b) Upon the entry of the order, the commissioner shall promptly notify the respondent, applicant, or licensee that the order has been entered and of the reasons for the order and that within 10 calendar days after receipt of a written request the matter will be scheduled for hearing. (c) Valid delivery of such order shall be by hand or certified mail at the last known principal office of the licensee or respondent or to a principal, control person, or legal representative of the licensee or respondent. (d) A hearing, if requested, shall be scheduled not later than 10 calendar days after the written request for such hearing is received by the commissioner. (e) Within 20 calendar days from the date of the hearing the commissioner shall enter an order making such disposition of the matter as the facts require. (f) If the person to whom an order to show cause or other order is issued fails to request a hearing within 30 calendar days of receipt or valid delivery of the order and no hearing is ordered by the commissioner, then such person shall be deemed in default, and the order shall, on the 31st day, become permanent, and shall remain in full force and effect until and unless later modified or vacated by the commissioner, for good cause shown. (g) If the person to whom an order to show cause is issued fails to appear at a hearing after being duly notified, such person shall be deemed in default, and the proceeding may be determined against him or her upon consideration of the order to show cause, the allegations of which may be deemed to be true. III. The department may take action for immediate suspension of a license, pursuant to RSA 541-A:30, III. IV. If a licensee is a partnership, association, corporation, or entity however organized, it shall be sufficient cause for the suspension or revocation of a license that any officer, director, or trustee of a licensed association or corporation or any member of a licensed partnership has so acted or failed to act in behalf of said licensee as would be cause for suspending or revoking a license to such party as an individual. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:20 Cease and Desist.

399-D:20. Cease and Desist. I. The department may issue a cease and desist order against any person who it has reasonable cause to believe is in violation of the provisions of this chapter or any rule or order under this chapter. II. (a) The order shall be calculated to give reasonable notice of the opportunity for a hearing and shall state the reasons for the issuance of the order. (b) Valid delivery of such order shall be by hand or certified mail at the principal office of the person. (c) A hearing, if requested, shall be held not later than 10 days after the written request for such hearing is received by the commissioner. (d) Within 20 days of the date of the hearing the commissioner shall issue a further order vacating the cease and desist order or making it permanent as issued or as amended by the commissioner. (e) If the person to whom a cease and desist order is issued fails to appear at the hearing after being duly notified, such person shall be deemed in default, and the proceeding may be determined against him or her upon consideration of the cease and desist order, the allegations of which may be deemed to be true. (f) If the person to whom a cease and desist order is issued fails to request a hearing within 30 calendar days of receipt of such order and no hearing is ordered by the commissioner, then such person shall likewise be deemed in default, and the order shall, on the 31st day, become permanent, and shall remain in full force and effect until and unless later modified or vacated by the commissioner, for good cause shown. III. If any person refuses to obey the commissioner's order, an action may be brought by the attorney general on the commissioner's behalf in any superior court in this state to enjoin such person from engaging in or continuing such violation or from doing any act or acts in furtherance of such violation. In any such action, an order or judgment may be entered awarding a temporary or permanent injunction, and awarding the commissioner or the attorney general or both costs in bringing such action. Any person who fails to comply with such injunction shall be subject to a fine not exceeding $10,000 or imprisonment, or both. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:21 Penalty.

399-D:21. Penalty. I. Any person or the members, officers, directors, agents, and employees thereof who knowingly violates any provision of this chapter shall be guilty of a misdemeanor for each violation if a natural person, or felony if any other person. II. Any person violating the provisions of RSA 399-D:14 through RSA 399-D:17 or engaging in the business of a debt adjuster without first obtaining a license if a license is required under this chapter, shall be prohibited from collecting, receiving, or retaining any interest or charges whatsoever whether paid or directly or indirectly received. Any such direct or indirect compensation received by such person shall be refunded to the consumer and the debt adjustment contract shall be null and void. III. Any person who knowingly violates any provision of this chapter, rule, or order of the commissioner may, upon notice and opportunity for hearing, except where another penalty is expressly provided, be subject to suspension or revocation of any registration or license, or an administrative fine not to exceed $2,500 for each violation in lieu of or in addition to such suspension or revocation as may be applicable under this chapter for violation of the provisions to which such rule or order relates. Each of the acts specified shall constitute a separate violation and each such administrative action or fine may be imposed in addition to any criminal or civil penalties imposed. IV. Any person who negligently violates any provision of this chapter, rule, or order of the commissioner may, upon notice and opportunity for hearing, except where another penalty is expressly provided, be subject to suspension, revocation, or denial of any license, including the forfeiture of any application fee, or the imposition of an administrative fine not to exceed $1,500 for each violation, in lieu of or in addition to suspension or revocation as may be applicable under this chapter for violation of the provision to which such rule or order relates. Each of the acts specified shall constitute a separate violation and each such administrative action or fine may be imposed in addition to any criminal or civil penalties imposed. V. Every person who directly or indirectly controls a person liable under this section, every partner, principal executive officer, or director of such person, every person occupying a similar status or performing a similar function, every employee of such person who materially aids in the act constituting the violation, and every licensee or person acting as a common law agent who materially aids in the acts constituting a violation of this chapter, either knowingly or negligently, may, upon notice and opportunity for hearing, and in addition to any other penalty provided for by law, be subject to license suspension, revocation, or denial of any license, including the forfeiture of any application fee, or the imposition of an administrative fine not to exceed $2,500, or both. Each of the acts specified shall constitute a separate violation and each such administrative action or fine may be imposed in addition to any criminal or civil penalties imposed. No person shall be liable under this paragraph who sustains the burden of proof that such person did not know, and in the exercise of reasonable care could not have known, of the existence of facts by reason of which the liability is alleged to exist. VI. Any person who refuses without just cause to be examined under oath or who willfully obstructs or interferes with the examiners in the exercise of their authority shall be guilty of a misdemeanor. VII. Failure to comply with the provisions of RSA 399-D:4 and rules adopted under that section shall be cause for denial of future license applications. VIII. If the commissioner finds that any licensee is no longer in existence or has ceased to do business as a debt adjuster or cannot be located after reasonable search, the commissioner may by order revoke the license or impose penalties. IX. Any person who willfully violates any provisions of RSA 399-D:13, I or II, or a cease and desist order or injunction issued pursuant to RSA 399-D:20 shall be guilty of a class B felony. Each of the acts specified shall constitute a separate offense and a prosecution or conviction for any one of such offenses shall not bar prosecution or conviction of any other offense. X. The attorney general on the commissioner's behalf, may, with or without prior administrative action by the commissioner, bring an action against any person in any superior court in this state to enjoin the acts or practices and to enforce compliance with this chapter or any rule or order under this chapter. Upon a proper showing, a permanent or temporary injunction, bar, restraining order, or writ of mandamus shall be granted and a receiver may be appointed for the defendant or the defendant's assets. The court shall not require the commissioner or attorney general to post a bond. Any person who fails to comply with an injunction, restraining order, or writ of mandamus shall be subject to a fine not exceeding $10,000 or by imprisonment, or both. In a proceeding in superior court under this paragraph where the state prevails, the commissioner and the attorney general shall be entitled to recover all costs and expenses of investigation, and the court shall include the costs in its final judgment. Source. 2016, 151:1, eff. Jan. 1, 2017.

RSA 399-D:22 Consumer Credit Administration License Fund.

399-D:22. Consumer Credit Administration License Fund. The balance in the consumer credit administration license fund shall be transferred and shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the commissioner, consumer credit administration division. Sums collected under this chapter shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the commissioner, consumer credit administration division. Source. 2016, 151:1, eff. Jan. 1, 2017.

Source: New Hampshire General Court (gc.nh.gov)URL: https://gc.nh.gov/rsa/html/NHTOC/NHTOC-XXXVI-399-D.htmFetched: 10/20/2026