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