A bill for an act relating to debt management programs, services, fees, and licensee requirements.

HSB 603 amends Iowa's debt management laws to clarify how licensed debt management companies handle client funds and charge fees. It requires companies to maintain separate accounts for client payments (Section 1) and removes restrictions on third-party payments for services (Section 3). Crucially, it mandates that companies can only charge fees after actually reducing or changing debt terms (e.g., through negotiated agreements), requiring a debtor's first payment and proportional fee calculations based on individual debt amounts (Section 4). This directly affects debt management licensees and debtors using these services by setting clear, outcome-based fee rules.