SB 2652 is new legislation that was enacted in the State of Mississippi regarding sellers of checks. The new law alters the quantity of the surety bond required for sellers of checks and re-labels them as money transmitters. The previous legislation required a surety bond or alternative security in a minimum quantity of $25,000 and a supplementary $15,000 for every extra business location, but was capped at $250,000. SB 2652 now requires a surety bond in a quantity which is the greater of $25,000 or the amount equivalent to the volume of outstanding money transactions in Mississippi State. The new legislation also boosts the cap on the surety bond quantity to $500,000. The Commissioner of Banking and Consumer Finance has the ability to require a surety bond in surplus of $500,000. The bill would have initially amplified the maximum quantity to $1 million. The SFAA counseled the bill sponsor on the availability restrictions that a $1 million surety bond could generate; the cap on the bond was decreased in reaction to this.
Louisiana State introduced a new law concerning private child support collection agencies. The new law is titled SB 130 and requires private child support collection agencies to acquire a $50,000 surety bond or cash deposit in order to do business in the state. The surety bond must be written by a state licensed surety company and it must be conditioned on the cooperation with the anticipated legislation; this includes the authentic execution of the agency’s agreements with its clients.
Consumer collection agencies must abide by a new law according to Minnesota State legislation. The new law is named SB 2839 and amplifies the surety bond amount required of consumer collection agencies from $20,000 to $50,000. There is also an additional $5,000 required for every $100,000 acquired from debtors in the state of Minnesota throughout the previous year. The surety bond may not surpass $100,000.
The State of Florida presented a new bill relating to consumer debt collection agencies. The new bill, which is referred to as SB 2086, requires consumer debt collection agencies to acquire a surety bond in relation to the present registration requirements in a quantity that will be established via regulations. The previous law stated that the surety bond could not be any less than $50,000 or greater than $1 million; the bond amount must by calculated by the agency’s business volume. The surety bond must run to the State for the advantage of clients who suffered damages as a result of the agency’s breach of the legislation. The surety’s aggregate liability is restricted to the surety bond’s penal sum.
HB 4781 is a new bill that was enacted within the State of Illinois which concerns debt settlement providers. The new bill requires debt settlement providers to acquire a $100,000 surety bond. The original draft of the bill would have required a minimum $1 million surety bond, but it was modified in the House. The Director of the Division of Financial Institutions has the option to require a more substantial surety bond quantity calculated by the disbursements that the provider executed in the prior year. The surety bond must be issued by a State licensed insurance company able to perform the business of fidelity and surety insurance.
Kentucky State presented a new law relating to debt adjusters. The new law, which is named HB 166, requires debt adjusters to acquire a $25,000 surety bond from a surety company authorized to operate in the Commonwealth. The surety bond is for the benefit of any individual who experienced injuries or damages that was the outcome of a debt adjuster’s infringement of the law. The surety bond must be active for two years following the debt adjuster’s termination of services. HB 166 authorizes direct actions on the surety bond.