Tennessee Debt Management Services Bonds

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What Is The Tennessee Debt Management Provider Bond Amount?

The bond amount has been set by the Tennessee Department of Commerce at $50,000.

This surety bond amount is the maximum amount of financial compensation available to a customer if they are purposefully harmed by a debt management provider.

This bond amount is also going to affect the price you pay and we'll get to that in the next section.

 

Why is a Tennessee Debt Management Services Bond Required?

As a debt management provider, you're responsible for the management of the financial affairs of a debtor.

And when the Tennessee Department of Commerce issues you a license, they are signaling to the public that you are a licensed professional they can trust to do business with.

However, they don't have the resources to police every business they issue a license to. After all they issue contractor licenses to public adjuster licenses.

The surety bond is the only tool they have to hold all licensed debt management providers accountable.

Despite the licensing process, paying the expensive $4,000 registration fee and all the other costs associated with getting a business up and running, every year there will be a small number of licensed providers who purposefully and financially harm their customers to increase profits.

Examples of these actions might include:

• Charging fake fees for services
• Charging fees higher than legally allowed
• Stealing money or misappropriating money to personal accounts
• Creating fake debt obligations to siphon money
• Failing to pay debt obligations and flat out stealing money

If a customer is financially harmed by a licensed provider, they can make a claim agains the $50,000 surety bond for financial compensation. This is why you can think of a surety bond like a penalty.

Again, the bond amount is the maximum for any one or multiple claims.

And as we've mentioned, this bond amount will also affect the price you pay.

 

How Much Does a Debt Management Provider Bond Cost?

All surety bonds are priced by a surety. A surety is an insurance company, that in this case underwrites debt management provider surety bonds.

Every surety that provides these bonds uses their own assessment rules for determining a rate. They will use these three factors when determining this rate:

• The primary credit of the owner or owners
• Business and financial experience
• Any prior bonding and licensing history if applicable

From these factors and their own risk tolerances, they will quote their rate and price.

This is how we can help you save many hundreds of dollars when you purchase your bond..

 

How to Pay Less For Your Debt Management Provider Bond

We are Surety Bonds Direct, a surety agency. We work with the highest A-rated sureties specializing in financial services surety bonds.

• We will price shop for you when you request a price quote
• We'll collect all the different rates from these sureties
• And deliver to you the lowest possible rate and price

It's our job to make purchasing your surety bond fast and easy.

Plus you are in complete control. After we obtain our best price for your debt management bond, you're under no obligation to purchase. Let us prove to you that we can deliver the lowest price.

 

What Are Example Prices For a Debt Management Provider Bond?

Here's how significant the price savings can be when the rates are different by one, two, even three percentage points.

Remember the bond amount is $50,000. The rates in the table below are from excellent credit to average credit scores.

Remember we routinely see rates come back 2 to 3 percentage points different.

Your payment will be one payment for a 12 month bond term. When you purchase your bond, you'll choose when your 12 month term starts.

Get your exact price in less than one business day.

Click here and complete our quote form. It's fast to fill out and if you prefer to speak with a person, call a bond specialist at 1-800-608-9950.

 

How Do I Keep My Debt Management Provider Bond Active?

Remember when you purchase, it's one payment for a 12 month bond term.

During the purchase process, you choose an effective date. This is your activation date for your bond. You should choose a date that is before you submit your application packet.

One year from this effective date you'll need to pay a renewal premium on the bond to keep it active.

This is another great reason to work with a surety agency like Surety Bonds Direct.

You get assigned a bond specialist who will manage your bond for you. Your bond specialist will contact you 30 to 45 days in advance to make sure the renewal premium is paid on time so your bond remains active.

Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue selling vehicles.

 

Debt Management Services Bonds And Getting Your Tennessee Business License/Registration

The Tennessee Department of Commerce does a great job of outlining the steps you need to complete to have your license issued. At a high level these are:

• Complete the application and pay the appropriate $4,000 application fee
• Provide your business financial statements prepared by a CPA
• Purchase your surety bond
• Purchase a minimum of $250,000 liability insurance
• Show evidence of accreditation by a third party - independent - accrediting organization
• Evidence of education
• Documentation of certification by a third party certification provider
• Details of your initial budget plan including a detailed breakdown of how your will assess the financial condition of your clients
• A copy of each form of proposed debt management plan agreement and the right to cancel
• Your schedule of fees
• Consent to review all trust accounts at will
• A full criminal background check

When you're ready to get pricing and purchase your surety bond, fill out our online quote form or call a bond specialist at 1-800-608-9950.