AB 1166: Fair Debt Settlement Practices Act.

The bill aims to expand protections for consumers who engage in commercial debt settlement services. It prohibits debt settlement providers from engaging in false, deceptive, or misleading acts or practices when providing debt settlement services. Consumers must be provided with certain disclosures and an unsigned copy of the proposed written contract. Debt settlement providers are also required to provide a detailed accounting of any amounts received or expected to be received by the debt settlement provider from the consumer's settlement account after receiving effective notice of cancellation. Consumers can terminate the contract at any time without a fee or penalty, and the debt settlement provider must comply with this request within 3 business days. Consumers can also bring a civil action for violation of these provisions. The bill makes nonsubstantive and related changes to ensur…