As defined by the Illinois Debt Management Services Act, debt management services, for a fee, manage the finances of the debtors.
They do so by accepting money from debtors and distributing those funds to creditors of the debtor.
As a condition for licensing under the Act, a debt management services provider is required to obtain a surety bond.
The Illinois debt management services provider bond is a standard $25,000 surety bond.
However, according to the Act, the surety bond amount may be increased according to the dollar amount of disbursements made by a licensee in the prior year.
If you are required to obtain a surety bond amount greater than $25,000 the Department of Financial Institutions, the bond’s obligee, will inform you of the increased amount required.
AmeriPro Surety Bonds will also facilitate any larger surety amounts required.
Managing and acting in a fiduciary capacity for someone’s debt is a very serious matter.
The purpose of this surety bond is a financial guarantee for Illinois consumers that a licensed debt management service provider, you will comply with all statutes and provisions governing your profession.
The bond protects those others--- the Illinois consumer --- from any acts of fraud, theft, and willful and negligent mismanagement or misappropriation of funds in your duties as a debt management provider.
Such protection afforded the consumer extends also to any employees, owners, and managers of your company.
But that bond is not an insurance policy.
Any claims judged credible and payable by the surety become your legal responsibility to reimburse in full. This includes all costs and fees associated with that settlement.
You can take comfort in the fact that you will pay nowhere near the bond’s $25,000 amount.
For qualified applicants, your surety bond may cost slightly more than 1% of the bond’s face amount.
The amount you personally will be required to pay will be determined by a standard application along with a credit check.
Therefore, the amount may vary somewhat or substantially.
Whenever you purchase the bond, the bond’s expiration will be December 31st of that year.
If you purchase the bond in the middle of the year, the bond’s premium may be prorated to reflect the shorter duration.
Your surety bond must always be kept active and current. Any lapses or gaps in bond coverage may result in the Department suspending your license.
AmeriPro Surety Bonds is a surety bonds-only agency providing surety bonds throughout Illinois.
Our agency also provides license and permit, contractor, court, and fiduciary bonds nationwide.
We thank you for your consideration and eagerly look forward to helping you get the bond you require.
Please call our agency today: