Debt management bond cost
The Arizona Department of Financial Institutions requires debt management companies to post bonds. The amount of coverage needed varies depending on how much debt the company handled and disbursed in the state during the previous year. A new company will need a $5,000 bond.The price you’ll pay for your debt management bond depends directly on your personal credit report.Poor credit? Don’t worry, our bad credit surety bond program allows us to approve 99% of all applicants!
Why this bond
The Arizona debt management surety bond is required by the Arizona Department of Financial Institutions. All rules, laws and regulations that are required to be followed by licensed debt management professionals can be found in the Arizona Revised Statutes (ARS). According to the ARS Title 6, Chapter 6, unlawful acts include:
- attempting to change any scheduled payment unless the debtor gives consent
- acting as both a collection agent and debt manager on a single account
- having a debtor sign a contract or agreement that is not complete
- receiving or charging any person for the referral of a debtor
- falsely advertising services
If a debt manager was to break any of these laws and a claim was made against him or her, the surety would initially pay for any financial losses up to the full bond amount; however, the principal is ultimately responsible for reimbursing the surety.Arizona debt management surety bonds are continuous until canceled, and the obligee requires 30 days notice from the surety underwriting company prior to cancellation.
When filling out the bond form, it is important to check the business/license type for which you are applying. If you wish to be bonded for more than one of the license types offered by the Department of Financial Institutions, multiple bonds must be taken out.Every employee within a debt management company in Arizona must be bonded, not just the company as a whole.
Start a debt management company
The following must be submitted to the Arizona Department of Financial Institutions when applying for a debt management license:
- biographical statement, if applying as an individual
- certificate of good standing
- branch office application(s)
- personal and professional financial statements
- notarized debt management supplement application
- all required fees
Apply for your surety bond
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