Each of these surety bonds aim to protect the clients of the holders of professional licenses. Surety bonds are a written agreement expressing certain legal standards will be met.
Last year Maryland Department of Labor, Licensing and Regulation implemented 6 new bond forms for professional licenses. These bonds forms are:
Mortgage Lenders, Brokers and/or Servicers
With a surety bond, it is guaranteed that the broker/servicers will comply with state regulations that govern this line of business.
Consumer Loan Services
This license discourages unethical business practices. It must be obtained before the business makes installment loans, makes more than 5 installment loans in 1 year, and engages in business.
The principle is required to have this bond which ensures money transmitters abide by industry laws and other standards. If money is transmitted within Maryland or with any person in Maryland, this bond is needed.
Credit Services Businesses
The Division of Financial Regulation of the Maryland Department of Labor requires this surety bond. It ensures credit repairers will abide by the Maryland Credit Services Business Act, protecting buyers of various credit services from fraud with a bond amount of $12,000.
Debt Settlement Service Providers
Providers are regulated and required to get a $50,000 bond in order to register with the state and to operate legally. Companies offering debt settlement services need to register with the Office of the Commissioner of Financial Regulation which includes a registration fee.
Protects collection agency clients by giving them the power to take action if the collection agency does anything unethical or fraudulent. The surety bond assures the funds that are collected by an agency will be collected and distributed legally.