Many states require a Debt Management Services Surety Bond for businesses that advise clients to make choices that impact their financial well being. This surety bond guarantees the protection against the principle in the case of fraudulent or illegal advice given by the principle. Also, businesses that advise others on financial situations such as credit repair, home loan modifications, and budget counseling must register within the division.
The Texas Consumer Credit Commissioner requires this bond for all persons offering consumer debt management services, sometimes called credit services. Bond amounts vary according to whether the services provider is in the control of consumer money to be paid out to creditors. In the case of the provider not holding consumer money, the bond amount would be $50,000. The bond amount is equal to the average balance in the provider’s trust account for the prior 6 months. The Commissioner determines the initial bond amount, however it cannot be less than $25,000 or greater than $100,000.
Along with other states other than Texas, potential clients will almost always go with the bonded company. A bonded company tells a client that the company has the client’s financial and legal safety in mind and is important. By working with a bonded company, clients know they will be financially and legally protected if the business makes fraudulent decisions.
The cost of the bond is worth the peace of mind it provides clients. A bonded company will gain and keep more clients than one that is not bonded. Surety1 knows that time is valuable to a business, so that is why Surety1 works to get bonds done accurately and timely.
Visit our application page and work with our talented and licensed agents. Our applications are free and simple to complete. Surety1.com is a service of AssuredPartners, one of the largest and fastest growing insurance agencies in the nation.