Virginia credit service and credit counselor/ debt management businesses must obtain surety bonds to ensure they conduct business in an ethical and lawful manner. The Credit Services Business Bond is required by the Office of Charitable and Regulatory Programs and is issued for the use and benefit of any person damaged as a result of a violation of the Credit Service Businesses Act (the “Act”), Virginia Code §59.1-335.1 by the bonded principal. The required bond amount is equal to 100 times the standard credit services fee but is not less than $5,000 or greater than $50,000.
The Debt Management Service Bond is required by the Virginia State Corporate Commission Bureau of Financial Institutions for those applying to the Commission for a license. This surety bond ensures compliance all written agreements with consumers, proper accounting for all funds received in its licensed business, and adherence to the provisions of said Chapter 20 of Title 6.2 of the Code of Virginia, and all other laws applicable to the conduct of its business.
