Whether or not your debt management services business is based in Minnesota, and whether or not you charge fees to your clients, if your company provides debt management services in the state, you must be licensed and bonded.
The state’s Division of Financial Examinations which is part of the Minnesota Department of Commerce, regulates the licensing of debt management companies.
The filing of your license is accomplished through NMLS, the Nationwide Multistate Licensing Sytstem; and the surety bond, once purchased from AmeriPro Surety Bonds, can be filed by our agency on your behalf.
The Minnesota debt management services provider bond is required by statute, and is a minimum amount of $5,000 (which would cost you just $100 annually).
HOWEVER, according to Statute 332A.04, Subd. 4, the amount of surety bond you require will ultimately be determined by the Commissioner.
The $5000 surety bond is the very minimum amount, and no maximum amount is statutorily stated.
Qualification for the surety bond is by means of a standard surety bond application.
Any amount up to $50,000, requires no underwriting and no credit inquiry; the bond is issued immediately after completion of an application and payment of the premium! (A $50,000 MN debt services surety bond will cost you $750 for a year).
Amounts greater than $50,000, for established businesses (at least 3 years), and who also meet other criteria may also qualify for streamlined processing. Businesses which don’t mean these criteria will undergo standard underwriting; however, you will still be eligible for these same premium price points.
Our agency also offers you the ability to prepay your premium for 2 or 3 years. While this is entirely your decision, prepayment of the premium offers you the ability to save over year to year premium renewal. Once selected, however, we do not issue refunds for early cancellation.
According to the same statute referenced above, the purpose of this surety bond is to protect any consumer who has a cause of action for the failure of a debt management service provider to comply with any laws or regulations, and which in turn causes harm.
A provider is considered “in default” if the company fails to provide services for which they are contracted.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license and permit surety bonds throughout Minnesota.
Our agency also provides surety bonds nationwide.
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