What is an Iowa Debt Management License Bond?
Any person who is applying for a debt management license in the State of Iowa is required by the Superintendent of Banking of the Iowa Department of Commerce to submit a surety bond.
The surety bond requirement is in compliance with Section 533A.2 of the Iowa Code. The surety bond will serve as an assurance that the debt management licensee will lawfully perform its duties and will indemnify any of its clients who have been harmed in case the licensee commits a misconduct.
Debt management is defined as:
- An individual, branch, or company who is engaged in the business of debt settlement
- Fixing or negotiating the debtor’s debt amount or terms of debt
- Paying the debt owed to the creditor or creditors on behalf of the debtor
- Posing as an intermediary between the debtor and the creditor in order to obtain concessions from the creditor
What is the bond amount?
The bond amount is $25,000 for each office.
Those who have excellent credit scores may be eligible to pay a low bond premium or just 1% of the bond amount!
Get your FREE quote today in order to determine what you have to pay!
What are the bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Iowa such as Surety Bond Authority
- The surety bond should be approved by the Superintendent of Banking of the Iowa Department of Commerce
- The debt management licensee is obligated to comply with the provisions of Section 533A of the Iowa Code, the rules and regulations of the Division of Banking of the Iowa Department of Commerce, and all the other applicable rules and regulations
- If the debt management licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond will remain valid until canceled. In the case of cancellation, a 30-day notice is required.
How can I obtain this type of bond?
In order to secure this type of bond, the debt management license applicant must seek the assistance of a surety bond company.
You will first be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Ready to get bonded? Start HERE!