What is an Oregon Debt Management Bond?
People always feel despondent and hopeless when confronted with debt problems. What they don’t know is that there is plenty of help out there to assist them in bouncing back and getting on the right track financially.
One example is consumer credit counseling which is offered by debt management companies. These firms can help people with debts to organize their finances and understand where their money is going. However, debt management companies can be menacing. Therefore, before getting the services of a debt management company, make sure the organization has secured a Debt Management Bond.
In Oregon, the Debt Management Bond is a mandatory warranty required by the Oregon Division of Financial Regulations to firms offering debt management services. Through this bond, clients are guaranteed that the company 1) will not attempt to modify or completely change any pre-programmed payment unless the debtor grants permission; 2) will not intimidate a debtor to sign any incomplete or unfinished agreement; 3) will not ask anyone to pay any fee for another person’s referral; and 4) will not advertise offerings of any non-existent service.
Why do you need an Oregon Debt Management Bond?
As a DMC, you need a Debt Management Bond because it is favorable to your business’ image and survival. On the one hand, the bond provides your customers and associates a sense of security that you are conducting business by regulations germane to the delivery of debt management services. It will likewise portray you as an entrepreneur of decorum and competence. You are demonstrating to your patrons that you are knowledgeable in providing to them services that are judicious and performed in a competent manner. Because of the bond’s existence, clients will feel positive about you and will not have qualms with availing of your services.
More details about the Oregon Debt Management Bond
A Debt Management Bond must be filed with the Director of the Department of Consumer and Business Services and must be issued by a surety company authorized to operate within the state of Oregon. Its coverage must be at least $10,000 or an amount specified by the Director.
What is the cost of an Oregon Debt Management Bond?
The rate for the debt management bond premium is highly reliant on your financial credit report and your reputation as a business owner within the territorial jurisdiction of Oregon. Well-qualified applicants with robust financial documentation can pay as low as 1% of the total bond amount.
How do I get an Oregon Debt Management Bond?
Getting a bond is effortless. The first step to obtaining an Oregon Debt Management Bond is to secure an assessment from a reliable surety bond company. Be sure to contact only lawful practitioners in the field of surety. Once required documents have been submitted and inquiries answered, the surety bond company will conduct a preliminary assessment. Based on the outcomes of the appraisal, your bond application will either be approved, or you will be requested to present additional documentation to aid the underwriting process.