S_MT PASS-12 — Bounded PASS-04 Example 3 correction
Fresh access date: October 26, 2026, Pacific / October 26, 2026, UTC
Scope: Only PASS-04 Example 3 and the corresponding C023 qualification. All other PASS-04 examples, amounts, claims, coverage rows, and unresolved holds remain unchanged.
Correction summary
| Affected point |
Prior treatment |
Corrected treatment |
| Bona-fide-error predicate |
The example stated that no bona-fide-error determination had been made, but then automatically required return of the $75 fee. |
The automatic voidness and all-fees-return consequence applies only if the unauthorized receipt did not result from a bona fide error. |
| $75 return |
Treated as unconditional. |
Conditional. The $75 is returned under §30-14-2010(4)(g) only in the branch where the bona-fide-error exception does not apply—or under some separate legal or contractual basis not established here. |
| Remaining balance |
$575 − $75 = $500 was presented as the immediate balance. |
$575 − $75 = $500 is correct only after the $75 is actually returned. Before any return, the hypothetical total received remains $575. |
| Missing signed DMP |
Correctly stated as an assumption but not kept analytically separate from subsection (4)(g). |
Section 30-14-2010(1) independently prohibits requiring or accepting consideration unless a compliant written and dated DMP has been signed by the consumer and a copy provided. The bona-fide-error exception in subsection (4)(g) does not establish that the fee was earned, that the execution defect was cured, or that a valid plan exists. Montana Code Annotated |
Exact replacement text for PASS-04 Example 3
Example 3 — Receipt before a valid signed DMP
Assumptions
- No compliant written and dated DMP has been signed by the consumer.
- The provider receives $500 described as creditor-purpose money.
- The provider also receives a $75 purported setup or consultation fee.
- Whether the receipt resulted from a bona fide error has not been determined.
- No independent fee-earning, refund, federal-coverage, contract, or principal-return facts are assumed.
Section 30-14-2010(1) prohibits a credit counseling service from requiring or accepting consideration for providing or offering covered services unless a compliant written and dated DMP has been signed by the consumer and a copy has been provided. Section 30-14-2010(4)(g) separately supplies automatic voidness and all-fees-return consequences for unauthorized fees, charges, funds, or payments, except when the receipt resulted from a bona fide error. Montana Code Annotated
Initial ledger
Creditor-purpose money received:
$500.00
Purported fee received:
+$75.00
Total received before any return:
$575.00
No lawful fee earning is established merely from receipt.
Branch A — bona-fide-error exception does not apply
If the $75 receipt was unauthorized and did not result from a bona fide error:
- The statutory voidness consequence applies to any purported DMP.
- The service must return all fees received from or on behalf of the consumer.
- On these hypothetical facts, the only identified fee is $75.
Fee actually returned:
$75.00
Amount remaining after that return:
$575.00 − $75.00 = $500.00
The remaining $500 is the creditor-purpose principal identified in the hypothetical. Section 30-14-2010(4)(g) speaks expressly of returning all fees; it does not itself supply the exact deadline, transfer route, or complete legal mechanism for disposition of the $500 principal. Montana Code Annotated
Branch B — bona-fide-error exception applies
If the $75 receipt resulted from a qualifying bona fide error:
- Section 30-14-2010(4)(g)’s automatic voidness and all-fees-return consequence is not established by that clause.
- Section 30-14-2010(1)’s signed-DMP prerequisite nevertheless remains unsatisfied.
- The exception does not establish that the $75 was lawfully earned, that it may be retained, that the missing execution was cured, or that the $500 became provider property.
- Absent an actual return or another legally established adjustment, the hypothetical total received remains $575.
The statute does not define “bona fide error” in this section or assign the burden of proving it. No burden, cure rule, or provider outcome is inferred here. Montana Code Annotated
Branch C — bona-fide-error facts unresolved
When the exception’s facts are unresolved:
- No automatic conclusion is made that a purported DMP is void under subsection (4)(g).
- No automatic $75 fee return is recorded.
- No conclusion is made that the $75 may lawfully be retained.
- The initial total received remains $575 for ledger purposes.
If the $75 is later actually returned under subsection (4)(g) or another established legal basis, the post-return balance is then:
$575.00 − $75.00 = $500.00
Until that return occurs, $500 is not the total remaining balance; it is only the identified creditor-purpose component of the $575 initially received.
Corrected C023 qualification
| Claim ID |
Corrected precise assertion |
Source and status |
| S_MT-P4-C023 — qualified by PASS-12 |
If a credit counseling service imposes an unauthorized fee or charge, or receives unauthorized funds or payments, and the receipt did not result from a bona fide error, any purported DMP is void and the service must return all fees received from or on behalf of the consumer. If the exception applies or remains factually unresolved, subsection (4)(g)’s automatic voidness and all-fees-return consequence is not established. Section 30-14-2010(1) independently bars requiring or accepting consideration absent a compliant consumer-signed DMP and delivery of a copy. Neither subsection establishes the principal-return mechanism or makes the fee earned. |
MCA §30-14-2010(1), (4)(a)–(g). High for statutory text; factual application, bona-fide-error standard, burden, principal disposition, and other remedies remain unresolved. Montana Code Annotated |
Failed or unsigned DMP coverage cross-reference
| Coverage point |
Corrected status |
Remaining hold |
| Consideration accepted before a compliant signed DMP |
Answered textually: subsection (1) prohibits requiring or accepting consideration under those conditions. |
Exact consequence beyond the conditional subsection (4)(g) remedy; whether any purported plan came into existence; fee retention under another theory; principal return; timing; transfer route; contract consequences; federal coverage; and actual provider facts remain unresolved. |
Source and access limits
| Classification |
Source or material |
Exact scope and limit |
| Fresh |
Montana Code Annotated 2025, §30-14-2010, Montana Legislature. Literal URL: https://mca.legmt.gov/bills/mca/title_0300/chapter_0140/part_0200/section_0100/0300-0140-0200-0100.html |
Directly read on October 26, 2026, Pacific/UTC. Relied on subsections (1), (4)(a)–(g), and the section history. The official page states that the Internet MCA is a research tool and the printed code controls if inconsistencies exist. No comprehensive post-2025 session-law audit was performed. Montana Code Annotated |
| Reused |
Immutable PASS-04 Example 3 and S_MT-P4-C023 supplied in the PASS-12 request |
Reused only to identify and patch the predicate error. Their original access history is unchanged and is not relabeled as fresh PASS-12 access. |
| Failed |
None |
No additional source route was attempted or represented as failed. |
| Not read |
Rules or cases defining “bona fide error”; actual DMP, account, ledger, contract, provider records, federal TSR coverage, principal-return authority, or burden-of-proof authority |
No conclusion is made on those questions. |
No other PASS-04 example, amount, source row, claim row, or coverage determination is modified. This patch creates no component, Montana, parent-dossier, A066, operational, or publication acceptance.
END S_MT PASS-12