11 U.S.C. § 526 : US Code - Section 526: Restrictions on debt relief agencies

Search 11 U.S.C. § 526 : US Code - Section 526: Restrictions on debt relief agencies

(a) A debt relief agency shall not -
(1) fail to perform any service that such agency informed an
assisted person or prospective assisted person it would provide
in connection with a case or proceeding under this title;
(2) make any statement, or counsel or advise any assisted
person or prospective assisted person to make a statement in a
document filed in a case or proceeding under this title, that is
untrue and misleading, or that upon the exercise of reasonable
care, should have been known by such agency to be untrue or
misleading;
(3) misrepresent to any assisted person or prospective assisted
person, directly or indirectly, affirmatively or by material
omission, with respect to -
(A) the services that such agency will provide to such
person; or
(B) the benefits and risks that may result if such person
becomes a debtor in a case under this title; or
(4) advise an assisted person or prospective assisted person to
incur more debt in contemplation of such person filing a case
under this title or to pay an attorney or bankruptcy petition
preparer fee or charge for services performed as part of
preparing for or representing a debtor in a case under this
title.
(b) Any waiver by any assisted person of any protection or right
provided under this section shall not be enforceable against the
debtor by any Federal or State court or any other person, but may
be enforced against a debt relief agency.
(c)(1) Any contract for bankruptcy assistance between a debt
relief agency and an assisted person that does not comply with the
material requirements of this section, section 527, or section 528
shall be void and may not be enforced by any Federal or State court
or by any other person, other than such assisted person.
(2) Any debt relief agency shall be liable to an assisted person
in the amount of any fees or charges in connection with providing
bankruptcy assistance to such person that such debt relief agency
has received, for actual damages, and for reasonable attorneys'
fees and costs if such agency is found, after notice and a hearing,
to have -
(A) intentionally or negligently failed to comply with any
provision of this section, section 527, or section 528 with
respect to a case or proceeding under this title for such
assisted person;
(B) provided bankruptcy assistance to an assisted person in a
case or proceeding under this title that is dismissed or
converted to a case under another chapter of this title because
of such agency's intentional or negligent failure to file any
required document including those specified in section 521; or
(C) intentionally or negligently disregarded the material
requirements of this title or the Federal Rules of Bankruptcy
Procedure applicable to such agency.
(3) In addition to such other remedies as are provided under
State law, whenever the chief law enforcement officer of a State,
or an official or agency designated by a State, has reason to
believe that any person has violated or is violating this section,
the State -
(A) may bring an action to enjoin such violation;
(B) may bring an action on behalf of its residents to recover
the actual damages of assisted persons arising from such
violation, including any liability under paragraph (2); and
(C) in the case of any successful action under subparagraph (A)
or (B), shall be awarded the costs of the action and reasonable
attorneys' fees as determined by the court.
(4) The district courts of the United States for districts
located in the State shall have concurrent jurisdiction of any
action under subparagraph (A) or (B) of paragraph (3).
(5) Notwithstanding any other provision of Federal law and in
addition to any other remedy provided under Federal or State law,
if the court, on its own motion or on the motion of the United
States trustee or the debtor, finds that a person intentionally
violated this section, or engaged in a clear and consistent pattern
or practice of violating this section, the court may -
(A) enjoin the violation of such section; or
(B) impose an appropriate civil penalty against such person.
(d) No provision of this section, section 527, or section 528
shall -
(1) annul, alter, affect, or exempt any person subject to such
sections from complying with any law of any State except to the
extent that such law is inconsistent with those sections, and
then only to the extent of the inconsistency; or
(2) be deemed to limit or curtail the authority or ability -
(A) of a State or subdivision or instrumentality thereof, to
determine and enforce qualifications for the practice of law
under the laws of that State; or
(B) of a Federal court to determine and enforce the
qualifications for the practice of law before that court.