In this subchapter:

1. (1) "Advertising" means information about a provider or about the provider's debt management services, communicated in writing or orally to an individual consumer or the public by telephone, television, Internet, radio, or other electronic medium, or by written material sent by mail, posted publicly, or posted at the provider's business location.

2. (2) "Certified counselor" means an individual who:

   1. (A) is certified as a debt management counselor by an independent accreditation organization; or
   2. (B) if the individual has been employed for less than 12 months, is in the process of being certified as a debt management counselor by an independent accreditation organization.
3. (3) "Commissioner" means the consumer credit commissioner.
4. (4) "Consumer" means an individual who resides in this state and seeks a debt management service or enters a debt management service agreement.
5. (5) "Creditor" means a person to whom a person owes money.

6. (6) "Debt management service" means:

   1. (A) the receiving of money from a consumer for the purpose of distributing that money to or among one or more of the creditors of the consumer in full or partial payment of the consumer's obligations;
   2. (B) arranging or assisting a consumer to arrange for the distribution of one or more payments to or among one or more creditors of the consumer in full or partial payment of the consumer's obligations; or
   3. (C) exercising control, directly or indirectly, or arranging for the exercise of control over funds of a consumer for the purpose of distributing payments to or among one or more creditors of the consumer in full or partial payment of the consumer's obligations.
7. (7) "Debt management service agreement" means a written agreement between a provider and a consumer for the performance of a debt management service.
8. (8) "Finance commission" means the Finance Commission of Texas.
9. (9) "Person" means an individual, partnership, corporation, limited liability company, association, or organization.
10. (10) "Provider" means a person that provides or offers to provide to a consumer in this state a debt management service.
11. (11) "Secured debt" means a debt for which a creditor has a mortgage, lien, or security interest in collateral.

12. (12) "Trust account" means an account that is:

    1. (A) established in a federally insured financial institution;
    2. (B) separate from any account of the debt management service provider;
    3. (C) designated as a "trust account" or other appropriate designation indicating that the money in the account is not money of the provider or its officers, employees, or agents;
    4. (D) unavailable to creditors of the provider; and
    5. (E) used exclusively to hold money paid by consumers to the provider for disbursement to creditors of the consumers and to the provider for the disbursement of fees and contributions earned and agreed to in advance.
13. (13) "Unsecured debt" means a debt for which a creditor does not have collateral.

Added by Acts 2005, 79th Leg., Ch. 336 (S.B. 1112), Sec. 1, eff. September 1, 2005.