214.23. The merchant must negotiate with the consumer’s creditors on the basis of the proposal agreed to with the consumer and evidenced in the contract in accordance with subparagraph j of the first paragraph of section 214.16.
If the creditor refuses the proposal, the merchant must inform the consumer both orally and in writing without delay.
If the creditor accepts the proposal, an agreement in principle regarding debt settlement entered into by the merchant with that creditor must be evidenced in writing. The merchant must send a copy of the agreement in principle to the consumer within 15 days after it is entered into and enclose a document containing the information required under subparagraphs j and k of the first paragraph of section 214.16, as it appears in the contract.
If the merchant has not received the creditor’s acceptance of a proposal at the time the summary document described in section 214.25 is provided or within 45 days after entering into the contract, whichever comes first, the creditor is deemed to have refused the proposal.