Attorney General Jack Conway

Information for adjusters

Debt adjusting is defined in KRS 380.010 (2) - doing business in debt adjusting, budget counseling, debt management, or debt pooling service, or holding oneself out, by words of similar import, as providing services to debtors in the management of their debts, to do any of the following:

  1. Effect the adjustment, compromise, or discharge of any account, note or other indebtedness of the debtor;
  2. Receive from the debtor and disburse to the debtor's creditors any money or other thing of value; or
  3. Solicit business and advertise as a debt adjuster

About Kentucky's debt adjusting law

Fees

Statute Maximum fee
380.040(2)(a) - Initial set up fee $75.00
380.040(2)(b) - Annual consultant fee $50.00
380.040(2)(c) - Periodic fee greater of 8.5% or $30.00
380.040(3) - Bad check charge greater of $20.00 or amount passed on by the bank

Debt adjusting annual registration

Effective June 20, 2005, any person that engages in debt adjusting in Kentucky shall file an initial registration form, accompanied by an initial registration fee of two hundred fifty dollars ($250), and the registration shall be renewed each year thereafter for a fee of two hundred fifty dollars ($250) to cover the actual cost of filing the registration, in accordance with administrative regulations promulgated by the Attorney General. A person engaged in debt adjusting shall obtain and at all times maintain insurance coverage for errors and omissions, employee dishonesty, depositor's forgery, and computer fraud.

The registration may be renewed by filing a renewal registration using Form DA-1 and paying the renewal fee, and filing the results of the annual audit and the auditor's opinion with the audit checklist (Form DA-2) completed by the auditor. The renewal registration form, fee, and audit checklist are due at least four (4) weeks prior to the expiration of the registration. Please note that the annual audit must include an audit of your organization's business, including any trust funds deposited and distributed to creditors on behalf of debtors, must be conducted by an independent, third-party certified public accountant, and must be no older than twelve months prior to the date of filing the renewal registration.

To register, please complete the forms and mail them to:

Office of the Attorney General
Attn: Debt Adjusting
1024 Capital Center Drive, Suite 200
Frankfort, Kentucky 40601