Per the Virginia Attorney General's Office a credit services business must be licensed and file a credit counselor or debt management bond. A operator may not conduct any business regulated by Virginia Credit Services Businesses Act (§59.1-335) without first having filed the appropriate surety bond and been granted a license. A debt management or credit counselor may engage in the following activities:
The Virginia credit counselor bond must be issued in an amount determined by the Commissioner of Agriculture and Consumer Services. The surety bond amount per 10VAC5-110-20 must equal to the licensee's average monthly volume of funds received from Virginia consumers under debt management plans during the preceding reporting period, rounded to the next highest multiple of $10,000. The Virginia debt management bond will not exceed $350,000. A new license candidate will file a bond based upon the candidates's financial condition, capitalization, projected Virginia monthly volume of funds received under debt management plans, experience, and other factors deemed pertinent by the Commissioner. The minimum bond requirement is $25,000. Surety bond inquiries and document submission should be directed to:
Virginia State Corporation Commission
Bureau of Financial Institutions
1300 E. Main Street, Suite 800
P.O. Box 640
Richmond, VA 23218-0640
The Code of Virginia and administrative regulations promulgated by the Commissioner regulate credit counselor and debt management practices in the state HOWEVER they do not nullify the Federal Code (15 U.S. Code §1679j) that also regulates the profession. There are specific acts prohibited under federal laws. The credit service organization bond may generally be claimed upon for violations of particular state rules, rather than the CRO Act however a credit services professional must clearly understand the federal regulations.
Virginia surety bond leader, SuretyOne.com is a specialist in the bonding needs of creidt counselors, debt managers and collection agencies. We offer both the surety bonds and fidelity bonds needed by credit service professionals in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. A Virginia credit counselor or debt management bond is quick, easy and delivered in hours.
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