1. (a) The rules contained in this chapter of this title are applicable to a debt management services provider who is engaged in the business of receiving funds from or controlling the funds of consumers for the purpose of distributing those funds to the creditors of consumers. If a person or entity that is engaged in the business receives and takes into its control the funds of consumers, or has authority over consumer accounts, for the purpose of distribution to the creditors of consumers in any manner that does not require the discretion and action of consumers, the person or entity will be considered a debt management services provider.

2. (b) The rules contained in this chapter of this title do not apply to:

   1. (1) the exceptions as provided by Texas Finance Code, §394.203;
   2. (2) transactions subject to the Money Services Act, Texas Finance Code, Chapter 151; or
   3. (3) business relationships or agreements that purport to assist consumers with their debts to the extent that consumer funds are not deposited into an account under the control of the person or business entity who is assisting the consumers with their debts.

Source Note:The provisions of this §88.109 adopted to be effective January 5, 2006, 30 TexReg 8860; amended to be effective May 6, 2010, 35 TexReg 3481.