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