Surety Solutions Insurance Services, Inc. (Surety1) now has an on-line application available for Colorado Debt Management Companies. Debt management companies are commonly referred to as credit counselling companies. Per the Colorado Uniform Debt-Management Services Act, any company that offers services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions, would need to register with the state of Colorado. The state usually requires an original $50,000 bond be filed as part of the registration process. Now companies can apply for the surety bond online saving both time and money. (See Press Release Here)
This surety bond protects the public form unscrupulous persons and companies that want to take advantage of other people’s problems. There are a lot of legitimate credit counselling companies, and like almost anything else, a few bad apples tarnish an entire industry. Putting a surety bond requirement in place adds an additional layer of prequalification to the licensing process. The surety bond amount is $50k, which means the applicant must have excellent credit to obtain the bond at standard rates. A company or person that is going to council other people on managing debt should have good credit.