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.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.