Illinois Debt Settlement Provider Bond

IllinoisThe State of Illinois introduced a new law regarding debt settlement providers. The new law, which is referred to as HB 4781, asks debt settlement providers to become licensed and to acquire a $100,000 surety bond. At first HB 4781 would have called for a minimum $1 million surety bond, but it was modified within committee in the House. The Director of the Division of Financial Institutions has the ability to require a larger 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 to perform the commerce of fidelity and surety insurance.