According to the Uniform Debt Management Services Act, all Debt Management Providers operating in Colorado must provide a Colorado Debt Management Services Provider Bond. The bond is sometimes referred to as a Credit Repair Company bond. The standard bond amount is $50,000. Credit counseling companies operating in Colorado would be required to meet the surety bond requirement of the Act. A “provider” is a person that provides, offers to provide, or agrees to provide debt-management services directly or through others.
What are the requirements in order to be a Colorado Debt Management Services Provider?
The following must be submitted to the Colorado Department of Law Consumer Credit Unit:
- A filled-out application form
- $1,000 for the registration fee, payable to Colorado Uniform Consumer Credit Code
- A filled-out personal history form of every person with at least 10% ownership, any director, officer, agent, or any person who is authorized to initiate transactions to the trust account
- A statement that the criminal records check has been submitted
- Copies of all the registration and license verification forms
- An audited financial statement for the past two years
- Description of what educational programs will be provided and also the applicant’s financial analysis plan that will evaluate the consumers
- A letter of credit or a surety bond worth $50,000 to show financial responsibility.
The surety bond, which must be issued by a company licensed to do business in Colorado, is a form of assurance for the state that you, as the applicant, promises to conduct your business professionally, following all the rules and regulations of the state.
Where can I get a Surety Bond?
Surety1, an AssuredPartners agency, can easily issue the Colorado Debt Management Services Provider Bond. Simply fill out this online application and you will receive a firm quote from one of our agents within one business day.
Our company is licensed in all 50 states, and we have been issuing surety bonds since 2003. We are also rated A+ by the Better Business Bureau for our fast and friendly service.
Visit our State Guide of Bond Requirements for Credit Services / Credit Repair Businesses