Connecticut Debt Adjusters Bond Requirement Update

On 01/30/2009, debt adjusters were impacted by a new bill in Connecticut. Labeled HB 6327, the new law modified the bonding requirements for licensed debt adjusters. With the previous law, the surety bond quantity required was the greater of $40,000 or double the amount of the highest total payments from Connecticut debtors in a single month. HB 6327 requires the surety bond amount to be the greater of $40,000 or double the quantity of the average daily balance in the previous twelve months. If the debt adjuster obtained the business of another debt adjuster, HB 6327 states that the surety bond amount is based on the prior adjuster’s activity in the last year or $1 million; whichever is less. Should a principal not be able to attain a bond in the amount called for, the debt adjuster must post the maximum surety bond amount possible (minimum of $40,000) and post the remainder in cash or cash equivalents. Under present law, if the debt adjuster cannot obtain the required surety bond, the adjuster can choose an alternative, and if allowed, the adjuster can complement the surety bond with other bonds or insurance.