It can apply only if the firm maintains customer information concerning fewer than 5,000 consumers, and it removes only four listed duties. Citation: 16 CFR 314.6.
Primary source: 16 CFR 314.2(h)(2)(xii)
Does the under-5,000-consumer exemption apply to a credit counselor or financial advisor?
Details
Many counseling practices are below 5,000 consumers, but multi-location or high-volume programs may not be. The exception does not remove safeguards or written-program duties. The firm should document the count method, because old files, leads, former customers, and retained records can matter.
Primary source: 16 CFR 314.2(h)(2)(xii).
FAQ
Does the under-5,000-consumer exemption apply to a credit counselor or financial advisor?
It can apply only if the firm maintains customer information concerning fewer than 5,000 consumers, and it removes only four listed duties. Citation: 16 CFR 314.6.
What is the data-flow issue for a credit counselor or financial advisor?
Information lives in intake questionnaires, budgets, creditor lists, account statements, planning software, CRM notes, document portals, payment-plan records, and advisor email. The WISP should separate advice records from any payment or debt-management data handled by vendors.
Is this legal advice?
No. It is source-cited educational content for a template product, not legal advice.