Surety Bond News

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.

The state of Idaho implemented a new law regarding collection agency bond requirements. The new law, HB 451, modifies the permit and bonding requirements for collection agencies and debt/credit counselors. The prior law demanded a permit for agencies and counselors and a surety bond per every permit. HB 451 requires only one surety bond and has to be acquired as an alternative to two bonds as under previous law. The amount of the required bond was not altered. HB 451 was enacted on April 1st, 2008.