425.027 - Surety bond for debt adjusters required, amount.

Steven Groce, Attorney Advertisement

Each initial license application shall be accompanied by a surety bond in the principal sum in accordance with the following categories:

(1)Fifty thousand dollars if the applicant declares that the operation will handle no consumer monies; or

(2)One hundred thousand dollars otherwise.

The bond shall be for the benefit of any debtor who is damaged by the debt adjuster's breach of the debt management plan or debt settlement plan or the debt adjuster's failure to properly administer debtor funds collected or disbursed under the debt management plan or debt settlement plan.The director of the division of finance may investigate any debtor complaint and make claim on a bond for the benefit of a debtor or release the bond to a debtor to make a claim.

(L. 2007 H.B. 329, A.L. 2011 H.B. 661)