Texas Debt Management Service Provider Bond

Texas debt management service providers must follow new surety legislation. The new law is titled SB 141 and requires debt management service providers to obtain a surety bond in a quantity equivalent to the average daily balance of the trust account holding funds for Texas consumers over a six-month period before the bond is issued. SB 141 states that the initial surety bond must be $50,000 if the provider doesn’t hold money paid by a consumer for distribution to creditors. The new law also requires the surety who writes the bond to be “A-” rated from a nationally known rating service.