63 Pa. Stat. § 2404
Section 2404 – Nonapplicability
(a) Exemption from act.–This act does not apply to the following persons: (1) A banking institution or a federally chartered or State-chartered credit union, if the primary regulator of the banking institution or federally chartered or State-chartered credit union supervises the banking institution or federally chartered or State-chartered credit union.(2) Judicial officers or persons acting under court order.(3) Agencies or instrumentalities of Federal, State or local government.(4) Employees of licensees or exempt persons under this act.(5) Attorneys who are admitted to the bar of this Commonwealth and provide legal services within an attorney-client relationship who engage in debt management services or debt settlement services within the normal course of legal practice.(b) Exemption from licensing.–The following persons are not required to be licensed under this act, but must comply with the provisions of this act if they offer, obtain or provide debt management services or debt settlement services: (1) Certified public accountants who are licensed by the Commonwealth and provide accounting services within an accountant-client relationship.(2) Title insurance companies licensed under the act of May 17, 1921 (P.L. 682, No. 284), known as The Insurance Company Law of 1921, or their agents.(3) Mortgage lenders, mortgage brokers and mortgage loan correspondents licensed under the provisions of 7 Pa.C.S. Ch. 61 (relating to mortgage loan industry licensing and consumer protection).
63 P.S. § 24042008, Oct. 9, P.L. 1421, No. 117, § 4, effective in 120 days [2/6/2009].
63 Pa. Stat. § 2502
Section 2502 – Definitions
The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:
“Affiliate.” Any of the following:(1) A person that directly controls, is controlled by or is under common control with the licensee.(2) An officer of or individual performing similar functions with respect to the licensee.(3) A director of or individual performing similar functions with respect to the licensee.(4) An officer or director of or an individual performing similar functions with respect to a person described in paragraph (1).
“Agreement.” An agreement between a provider and an individual for the performance of debt settlement services.
“Bank.” A financial institution, including a commercial bank, savings bank, savings and loan association, credit union, bank and trust company, engaged in the business of banking, chartered under Federal or State law and regulated by a Federal or State banking regulatory authority.
“Commission.” The Banking and Securities Commission.
“Concessions.” 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.
“Debt settlement services.” Services as an intermediary between an individual and one or more unsecured creditors of the individual for the purpose of obtaining concessions where the contemplated concessions involve a reduction in principal of the individual’s unsecured debt owed for personal, family or household expenses to at least one creditor. The term does not include:(1) Legal services provided in an attorney-client relationship by an attorney licensed or otherwise authorized to practice law in this Commonwealth.(2) Accounting services provided in an accountant-client relationship by a certified public accountant licensed to provide accounting services in this Commonwealth.(3) Financial planning services provided in a financial planner-client relationship by a licensed member of a financial planning profession.
“Department.” The Department of Banking and Securities of the Commonwealth.
“Good faith.” Honesty in fact and the observance of reasonable standards of fair dealing.
“Person.” An individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture or any other legal or commercial entity. The term does not include a public corporation, government or governmental subdivision, agency or instrumentality.
“Program.” A program or strategy in which a provider furnishes debt settlement services.
“Provider.” A person that provides, markets, solicits, offers to provide or agrees to provide debt settlement services.
“Record.” Information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
63 P.S. § 2502Added by P.L. 1022 2014 No. 118, § 102, eff. 11/1/2014.
63 P.S. § 2521
v§ 2521. Requirements
(a) General rule.–Except as provided under subsection (b) and on or after the effective date of this section, a provider may not market, solicit, offer to provide or provide debt settlement services for a fee or other consideration to an individual who resides in this Commonwealth at the time it agrees to provide the services, unless the provider is licensed under this act.
(b) Nonapplicability.–If a provider is licensed under this act, subsection (a) shall not apply to an employee of the provider acting on behalf of the provider.
(c) Listing.–The department shall maintain and publicize a list of the names of all licensed providers.
18 Pa.C.S.A. § 7312
§ 7312. Debt pooling
(a) Offense defined.–Any person engaged in the business of debt pooling shall be guilty of a misdemeanor of the third degree.
(b) Exceptions.–Subsection (a) of this section shall not apply to:
(1) Any person who is admitted to practice before the Supreme Court of Pennsylvania or any court of common pleas of this Commonwealth or any partnership or professional corporation all of the members or shareholders of which are so admitted.
(2) Better business bureaus, legal aid societies or welfare agencies who act without compensation or profit on behalf of debtors as debt adjusters or debt poolers.
(3) Organizations in the business of debt adjusting or debt pooling that are exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) or any successor provisions thereof.
(c) Definitions.–As used in this section the following words and phrases shall have the meanings given to them in this subsection:
“Creditor.” A person to whom a debt or obligation is owed from another whether such is payable in installments or otherwise.
“Debtor.” A person who owes an obligation or debt to another whether such is repayable in installments or otherwise.
“Debt pooling.” The making of a contract, express or implied, with a debtor or debtors whereby the debtor agrees to pay a sum of money periodically or otherwise to another person for the purpose of having such other person distribute the same among certain specified creditors in accordance with a plan agreed upon, or to be agreed upon, and whereby such other person shall receive a consideration for any such services rendered, or to be rendered, in connection therewith.