A Maryland Debt Management Bond is a type of surety bond and is just one requirement to obtain a Maryland Debt Management Services License in the state of Maryland. A Debt Management Services business receives funds periodically from a consumer under an agreement with the consumer with the purpose of distributing one or more payments to or among one or more creditors of the consumer in full or partial payment of an obligation. Maryland has a different license for Credit Services Businesses. A Maryland Credit Services Bond information page can be found here. While the license and surety bond is a requirement of the Maryland Commissioner of Financial Regulation, the licensing process and administration of the license is managed by the Nationwide Mortgage Licensing System (NMLS).
This license authorizes the following activities:
- Bill paying
- Debt management/credit counseling
- Debt negotiation
- Debt settlement/debt adjuster
- Non-mortgage loan modifications
One may engage in these activities under this license if done as part of a debt management contract, plan, or agreement between you and a consumer, by which you receive funds periodically from a consumer for the purpose of distributing the funds among the consumer’s creditors in full or partial payment of the consumer’s debts.
The Maryland Debt Management Bond in the amount of $10,000, filed electronically with the NMLS is just one of the license requirements. A complete checklist for the license requirements can be found here.
Visit our State-By-State Guide to Credit Services Bonds
Here are the steps on how to get a debt management license in Maryland:
- Create a business entity. You can form a corporation, limited liability company, or other legal entity.
- Get a Maryland Debt Management Bond in the amount of $25,000.
- Create a debt management plan. The plan must comply with the Maryland Debt Management Services Act.
- Appoint a compliance officer. The compliance officer must be responsible for ensuring that the company complies with the law.
- File an application with the Maryland Department of Labor. The application fee is $250.
- Pay the licensing fee. The licensing fee is $250.
- Await approval of your application. The process can take several weeks.
- Receive your license. Once your application is approved, you will be issued a license that is valid for one year.
How to Obtain a Maryland Debt Management Bond
At surety1.com we make it easy to obtain this surety bond . Our easy 3 step process is:
- Complete our easy to navigate and secure online application.1
- Review the free, no obligation quote from one of our surety bond professional agents, usually within 1 business day.
- Sign some paperwork and pay the bond premium.
Once these steps have been completed, the Maryland Debt Management Bond will be filed electronically by Surety1.com with the NMLS.
1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.