Debt management license bond cost
The Iowa Division of Banking requires debt professionals to post a $25,000 surety bond to legally work within the state.Surety Bonds offers these bonds for different costs depending on each applicant’s credit report.
Why this bond
By posting a debt management bond in Iowa, principals (debt professionals) agree to abide by the provisions listed in Iowa Code Chapter 533A and all pertaining rules and regulations. Specifically, this bond ensures that the debt manager and/or his or her employees faithfully account for all money collected while on the job.
Debt management license bond details
Iowa debt management license bonds are continuous until canceled. To cancel the bond, the surety must file written notice with the Superintendent of Banking at least 30 days prior to the effective date of termination.
Additional Information for debt managers in Iowa
Debt managers must be licensed to conduct business legally in Iowa. Once licensed, the debt manager must describe the layout and design of his or her debt management program so that a debtor can make an informed decision about working with the manager. Specifically, managers must provide the debtor with the following information during this process:
- The total estimated fee the debtor will pay for participating in the program
- That the applicant cannot guarantee any specific results from participating in the program
- That the debtor may elect to discontinue participation without penalty
- That payments are not made to creditors on the debtor’s behalf, so the debtor is still obligated to make payments to creditors
- That creditors can still attempt to collect debts while the debtor is enrolled in the program
- And more
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