North Dakota Century Code Title 13. Debtor and Creditor Relationship § 13-11-20. Cancellation of contract and right to fee and settlement fund refunds

1. A consumer may cancel a contract with a debt-settlement provider at any time before the debt-settlement provider has performed fully each service the debt-settlement provider contracted to perform or represented that the debt-settlement provider would perform.

2. If a consumer cancels a contract with a debt-settlement provider, or at any time upon a material violation of this chapter on the part of the debt-settlement provider, the debt-settlement provider shall refund all fees and compensation, with the exception of the application fee and any earned settlement fee, as well as all funds paid by the consumer to the debt-settlement provider that have accumulated in a consumer settlement account and that the debt-settlement provider has not disbursed to creditors. Upon cancellation, all powers of attorney and direct debit authorizations granted to the debt-settlement provider by the consumer are considered revoked and voided.

3. A debt-settlement provider shall make any refund required under this section within seven days after the notice of cancellation and shall include with the refund a full statement of account showing fees received, fees refunded, savings held, payments to creditors, settlement fees earned, if any, and savings refunded.

4. Upon the cancellation of a contract under this section, the debt-settlement provider shall provide timely notice of the cancellation of the contract to each of the creditors with whom the debt-settlement provider has had any prior communication on behalf of the consumer in connection with the provision of any debt-settlement service.