The Texas Consumer Debt Management Bond is required by the Office of Consumer Credit Commissioner.
The Texas Consumer Debt Management Bond states that the bond holder will fully comply at all times with all obligations in accordance with the Texas Finance Code or any regulations, rules, and orders that pertain to it.
The Office of Consumer Credit Commissioner requires this surety bond to protect of the state and people of the state. It covers any damages and penalties to consumers directly harmed as a result of the consumer debt management’s actions.
The bond must be in an equal amount to the provider’s average daily balance trust account that serves Texas consumers. This amount must be over the six-month period preceding the bond being issued.
In the case of a first-time application, the amount of the bond will be determined by the commissioner. This amount, however, will not be less that $25,000 or greater than $100,000 if the provider receives and holds money paid by consumers for payment to the consumer’s creditors. The bond will be $50,000 if the provider does not receive and hold money paid by consumers for payment to the consumer’s creditors.