Debt Management Services Bond Guide
Most states require debt management service providers to file a surety bond as a licensing requirement. Learn how they work and where to apply for one in this guide.
Bond Overview
- Purpose: To protect consumers from unfair or deceptive debt management practices
- Who Needs It: Debt management and settlement services providers in most states
- Required Amounts: Varies by state, typically $25,000–$100,000
- Premium Rates: Typically 1–5% of the coverage amount, based on financial risk
Keep reading to learn how to navigate the debt services provider bonding process with SuretyBonds.com.
What Is a Debt Management Service Provider Bond?
Debt management services provider bonds protect consumers from unfair or deceptive debt management practices. The bond terms prohibit providers from engaging in activities such as purchasing debts of consumers or providing credit to a consumer.
Select your state to find specific bond requirements and pricing in your area:
How to Get a Debt Management Provider Surety Bond
SuretyBonds.com provides the fastest and easiest bonding process for debt management service providers:
- Step 1: Submit your application online 24/7.
- Step 2: Get your free quote.
- Step 3: Pay for your bond. We offer convenient online payment options.
How Fast Can I Get My Bond?
You can get your digital bond form on the same day you purchase it. Some states require original, physical documents. In this case, we'll ship a package to you. If needed, you can select overnight shipping at checkout.
How Much Does a Debt Service Provider Bond Cost?
Our team works with the top insurance markets nationwide to offer the lowest available rates. The cost of your debt management service provider bond will depend on the following factors:
- Bond amount
- The state/municipality requiring the bond
- The associated risk of the project
- Personal financial credentials (in some cases)
For qualified applicants, rates often start as low as 1% or less of the bond amount.
Get your exact price by requesting a free quote now.
How Does the Bond Contract Work?
Debt management services provider bonds are a type of license and permit bond that acts as a legal contract binding three parties:
- The principal is the provider purchasing the bond.
- The obligee is the government licensing agency requiring the bond.
- The surety is the provider issuing the bond and backing the principal.
If the principal violates any of the terms of the bond agreement, the surety will compensate harmed consumers for financial damages up to the bond amount. The principal must then reimburse the surety.
