BILL NO. 107

(bb) "debt management agent" means an individual employed, appointed or authorized by a debt management agency to act for or deal with debtors;

(a) any barrister or firm of barristers of the Supreme Court of Nova Scotia; or

(b) any other person or class of persons exempted by the regulations.

(2) Any waiver or release by a person of the rights, benefits, protections or remedies under this Act and any agreement that in any way limits or abrogates or in effect limits or abrogates any such right, benefit, protection or remedy is void.

(a) collection agency licence;

(b) collector's licence;

(c) debt management agency licence;

(d) debt management agent's licence.

(a) a collection agency unless the person holds a collection agency licence;

(b) a debt management agency unless the person holds a debt management agency licence;

(c) a collector unless the individual holds a collector's licence; or

(d) a debt management agent unless the individual holds a debt management agent's licence.

(2) No person may hold both a collection agency licence and a debt management agency licence.

(3) No individual may hold both a collector's licence and a debt management agent's licence.

(4) A collection agency shall not carry on the activities of a collection agency in a name other than the name shown on its licence nor invite the public to deal at a place other than that authorized by its licence.

(5) A debt management agency shall not carry on the activities of a debt management agency in a name other than the name shown on its licence nor invite the public to deal at a place other than that authorized by its licence.

(6) A collection agency or debt management agency shall direct a debtor to

(a) make payments at or otherwise communicate through the place authorized by its licence; or

(b) deal directly with the creditor of the debt.

(7) No collection agency shall conduct collection agency activity except at the place authorized by the licence and unless the activity is entered on the systems of the collection agency.

(8) No debt management agency shall conduct debt management agency activity except at the place authorized by the licence and unless the activity is entered on the systems of the debt management agency.

(a) a collection agency unless the person holds a collection agency licence; or

(b) a debt management agency unless the person holds a debt management agency licence.

(2) No individual shall represent himself or herself as carrying on the activities of

(a) a collector unless the individual holds a collector's licence; or

(b) a debt management agent unless the individual holds a debt management agent's licence.

(a) one copy of each form of agreement that the debt management agency uses or proposes to use when entering into an agreement with a debtor, unless the form or content of the agreement is as prescribed by the regulations; and

(b) a bond or other form of security as prescribed by the regulations.

(2) The agreement referred to in clause (1)(a) must

(a) contain cancellation rights as prescribed by the regulations; and

(b) set out particulars of the fees charged or proposed to be charged by the debt management agency.

(4) A licence issued to a debt management agent shall indicate thereon the name of the debt management agency that furnished the statement required under subsection (3) and on whose behalf the debt management agent is authorized to act as a debt management agent.

(4) A debt management agency that fails to give the notice required by subsection (3) within five days after the debt management agent has ceased to represent it is guilty of an offence.

(2) Subsection (1) does not apply if the collection agency, debt management agency, collector or debt management agent is exempted pursuant to Section 3.

(2) In accordance with the regulations, every collection agency and debt management agency shall acknowledge, by means of receipt, any payments, agreements or transactions made by or on behalf of debtors.

(2) A debt management agency is the trustee of any money received from a debtor for distribution to the debtor's creditors.

(3) Every collection agency and debt management agency shall maintain a trust account in a bank in the Province and shall deposit into the trust account all of the money collected on behalf of another person or received from a debtor for distribution to the debtor's creditors, without making any deduction, within three days of collecting or receiving the money.

(4) Notwithstanding subsection (3), the Registrar may

(a) authorize a collection agency or debt management agency to maintain its trust account in a financial institution of a class approved by the Registrar, which is located outside the Province; and

(b) prescribe the time within which the money referred to in subsection (3) must be deposited into the trust account.

19B (1) No collection agency or debt management agency may deposit any money into the trust account it maintains pursuant to Section 19A except money collected or received from a debtor.

(2) No collection agency or debt management agency may withdraw money from a trust account it maintains pursuant to Section 19A except for the purpose of

(a) paying a creditor money received on behalf of that creditor;

(b) paying the fees, commissions and disbursements to which the collection agency or debt management agency is entitled;

(c) returning money collected from a debtor by a debt management agency if the debt management program is rejected by the creditor or cancelled;

(d) correcting an error caused by money being deposited to the trust account by mistake; or

(e) making a disposition, in accordance with the regulations, of money that is unclaimed or cannot be returned to a debtor.

(3) A collection agency or debt management agency that pays creditors from money withdrawn from its trust account shall do so in the manner prescribed by the regulations and must provide the creditor with a statement containing such information as prescribed by the regulations.

(bb) collect or attempt to collect money from a person who is not liable for the debt;

(la) indicate to the debtor or any other person contacted for the purpose of collecting a debt that the collection agency or collector is a legal collector, litigation specialist, part of a law firm or the legal department of a business, including a legal department of the collection agency itself or of the creditor of the debt;

(ii) the contact is solely for the purpose of confirming the debtor's employment status, business title or business address and occurs only once, or

(iii) the contact is authorized in writing by the debtor;

(ii) there is no lawful authority;

(a) the agent's name as shown on the debt management agent's licence; and

(b) the name of the debt management agency as shown on the debt management agency licence.

(2) No debt management agency or debt management agent shall

(a) collect from a debtor any amount greater than that prescribed by the regulations pursuant to subsection (6) for acting for the debtor in making arrangements or negotiating with the debtor's creditors on behalf of the debtor or receiving money from the debtor for distribution to the debtor's creditors;

(b) make any arrangement with a debtor to accept a sum of money that is less than the amount of the balance due and owing to a creditor as final settlement without the prior express consent of the creditor;

(c) fail to provide any person for whom the debt management agency or debt management agent acts with a written report on the status of that person's account in accordance with the regulations;

(d) give any person, directly or indirectly, by implication or otherwise, any false or misleading information, including, but not limited to, references to the police, a law firm, prison, credit history, court proceedings, lien or garnishment;

(e) charge a fee for a dishonoured cheque unless provision for the fee was included in the agreement with the debtor;

(f) charge or receive any fee in the form of a promissory note or other negotiable instrument other than a cheque or bank draft;

(g) lend money or provide credit to a debtor for whom the debt management agency or agent is acting or offering to act;

(h) offer, pay or give any gift, bonus, premium, reward or other compensation to a debtor for entering into an agreement;

(i) directly or indirectly collect any fee for referring, advising, procuring, arranging for or assisting a debtor in obtaining any extension of credit from a lender, creditor or service provider;

(j) make a claim for breach of contract against a debtor who cancels an agreement;

(k) fail to inform a debtor within thirty days after a creditor has notified the debt management agency that the creditor has decided not to participate in or has withdrawn from a debt management program;

(l) communicate information about a debt or the existence of a debt with any person except the debtor, a guarantor of the debt, the debtor's representative or the creditor of the debt; or

(m) enter into an agreement with a debtor without first providing such information as may be prescribed by the regulations.

(3) No debt management agency may charge any fee, commission or disbursement for its services except in accordance with this Act and the regulations.

(4) No debt management agency may collect or retain from a debtor any fee, commission or disbursement for its services unless before providing the service it has

(a) entered into a written agreement signed by the debt management agency and the debtor to provide the service; and

(b) delivered a copy of the agreement required under clause (a) to the debtor.

(5) The content or form of the agreement referred to in clause (4)(a) may be prescribed by the regulations.

(6) No debt management agency shall charge a debtor any fee, commission or disbursements unless the fee, commission or disbursement has been determined in accordance with the regulations and does not exceed the maximum amount prescribed by the regulations.

(5) Where a collection agency or debt management agency makes a request under subsection (4) and permission is granted by the Registrar, the cost of carrying out the inspection, including all necessary and reasonable travel expenses, must be paid by the collection agency or debt management agency.

(2) Where any person licensed under this Act is making false, misleading or deceptive statements in any written, oral or visual advertisement, circular, program or other advertising medium, the Registrar may order the immediate cessation of such statements.

22B (1) A debtor may cancel an agreement referred to in subsection 20A(4) under the circumstances described in the regulations.

(2) A debt management agency shall not cancel an agreement referred to in subsection 20A(4) except under the circumstances described in the regulations.

(3) Where an agreement is cancelled pursuant to subsection (1) or (2), the debt management agency shall, within fifteen days, return to the debtor any money held in trust for the benefit of the debtor, less any amount paid to a creditor prior to the cancellation of the agreement and any fees permitted by the regulations.

(2) Subsection 24(2) of Chapter 77, as amended by Chapter 3 of the Acts of 2003 (Second Session) and Section 45 of this Act, is further amended by

(a) adding "or debt management agency" immediately after "agency" in the third line; and

(b) striking out "ten" in the last line and substituting "three hundred".

(b) a licence was granted to a collection agency, debt management agency, collector or debt management agent; or

(c) the licence of a collection agency, debt management agency, collector or debt management agent was suspended, cancelled, terminated or reinstated,

(db) governing dispositions of money that is unclaimed or cannot be returned to a debtor for the purpose of clause 19B(2)(e);

(dc) governing the manner in which collection agencies or debt management agencies pay creditors from money withdrawn from trust accounts for the purpose of subsection 19B(3);

(dd) governing the information to be provided to a creditor in a statement pursuant to subsection 19B(3);

(eb) prescribing the form, content and manner of delivery of receipts;

(fa) exempting any person or class of person from the application of this Act;

(hb) prescribing the form and manner in which information must be disclosed to a debtor by a debt management agency before entering into an agreement with the debtor;

(jb) prescribing the form and contents of the written report on the status of a person's account for the purpose of clause 20A(2)(c);

(jc) respecting the circumstances under which a debtor may cancel an agreement for the purpose of subsection 22B(1);

(jd) respecting the circumstances under which a debt management agency may cancel an agreement for the purpose of subsection 22B(2);

(je) respecting the form and manner in which a debtor may notify a debt management agency of the cancellation of an agreement;

(jf) respecting the form and manner in which a debt management agency shall notify a debtor of the cancellation of an agreement;

(jg) respecting the fees, commissions and disbursements that may be charged by a debt management agency;

(jh) respecting fees permitted pursuant to subsection 22B(3);

(ji) respecting the circumstances in which debt management agency fees, commissions and disbursements apply;

(jj) respecting the methods of calculating debt management agency fees, commissions and disbursements and the maximum amounts that may be charged;

(jk) defining any word or expression used but not defined in this Act;

(ab) collect or attempt to collect money from a person who is not liable for the debt;

(m) communicate or attempt to communicate with any member of a borrower's family or household or any relative, neighbour, friend or acquaintance of a borrower, unless

(a) prescribing other days and times when a person may not be contacted in relation to the collection of money or possession of property for the purpose of clause 4(h);

(b) defining any word or expression used but not defined in this Act;

(c) respecting any matter or thing the Governor in Council considers necessary or advisable to effectively carry out the intent and purpose of this Act.

(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.