Michigan Debt Management Surety Bond |
AmeriPro Surety Bonds | 844-589-9732
Debt Management Companies – Michigan
Debt management companies operating in Michigan are regulated by the state’s Department of Insurance and Financial Services.
As a prerequisite for licensing, debt management companies are required to obtain furnish the Department with a surety bond according to a simple formula.
AmeriPro Surety Bonds offers you the debt management surety bond in the amount required as a first time or renewal surety bond.
Michigan Debt Management Surety Bond: Amount Required and the Bond’s Duration
Michigan debt management companies, at the time of the first license or at the time of the renewal of an existing license, must provide evidence of a surety bond which is equal to the amount of funds in your company’s trust account at the time of the new or renewal application.
The amount of the surety bond, however, is to be definitively determined by the department.
The thresholds are as follows:
- The minimum amount of surety bond required is $25,000;
- The maximium amount of surety bond required is $100,000.
By Department rules, the Michigan debt management surety bond will have an expiration on December 31st of the year in which the bond is issued.
The Premium for this Surety Bond
There will be a number of variables used in determining the price of your Michigan debt management surety bond:
- The amount of the surety bond required;
- When during the year the bond is purchased (the bond’s expiration date is December 31st of the same year, regardless of the date of purchase; and the bond may be prorated for premium);
- Information provided on your surety bond application;
- Your credit score.
As a broad general rule, an applicant with good credit, paying for a full year for a debt management surety bond, may pay somewhere around 2%; however, we stress that the amount that you will be asked to pay can differ somewhat.
Another consideration is that the amount of surety you are required to purchase, depending on the amount of funds held in trust, may differ from year to year.
AmeriPro Surety Bonds will work on your behalf to find the best surety bond pricing.
The Michigan Debt Management Surety Bond: Its Purpose
The debt management surety bond exists for one benefit alone: The protection of the consumer for and from whom you collect money.
The bond is a financial guarantee, in favor of the consumer, that money collected can be accounted for by your company, and any employees or agents whom you hire who engage in the collection and the administration of funds.
The bond allows those who can demonstrate theft, fraud, or malfeasance on the part of a debt management company to be reimbursed for losses.
As principal of this bond, you are ultimately responsible for any claims paid against your bond. In the present instance, this means that you are legally liable to reimburse the surety for any costs and fees in the settlement of any claim against you or your company, if that were ever the case.
AmeriPro Surety Bonds is a surety bonds-only agency.
We provide license and permit, contractor, court, and fiduciary bonds throughout Michigan.
We also provide surety bonds nationwide. Please call our agency today at:
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