The Massachusetts Division of Banks and Loan Agencies has proposed the addition of a debt collector bond in the amount of $25,000. The proposed wording, “the Commissioner ‘MAY require’ that a licensee offer a bond”, appears to be a set-up for adverse selection. The Surety and Fidelity Association of America reports that it has submitted comments questioning the bond’s purpose and the risk of adverse selection. Surety professionals, keep your eye on this one!
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