Arizona Debt Management Bond

Arizona Debt Management Bond

The Arizona Department of Financial Institutions (AZDFI) mandates that all Arizona debt management companies hold a valid license to conduct business in the state, pertinent to Arizona State Statutes ARS 6-704. The license requires a Debt Management Bond and Jet Insurance Company offers this bond as a promise to the AZDFI that debt management companies will uphold contracts and abide by licensing provisions.

APPLY FOR DEBT MANAGEMENT BOND

Jet provides this bond online, and can be purchased in minutes. Just click the link above to get the bonding process started.

What Is the Lowest Price for the Debt Management Bond?

Jet's Debt Management Bond pricing starts at $100 per year or $10 per month. Bond rates depend on the amount of money disbursed to clients from the previous year and the owner’s credit score. Larger limit bonds might require a manual review by one of our underwriters.

Yearly DisbursementsBond AmountMonthlyAnnual
$100k or less$5,000$10$100
$100k-250k$10,000$15$150
$250k-500k$15,000$23$225
$500k-1mil$20,000$30$300
$1mil and up$25,000$38$375
Arizona Debt Management Bond Pricing

You can also get a two or three year bond with Jet to save money. Those multi-year rates start at $175 and $250, respectively.

What Is the Purpose of the Debt Management Bond?

The Department of Financial Institutions has an obligation to oversee various financial trades and enterprises to promote safety and robustness within the Arizona financial services industry. The Arizona State Legislature sets the laws (ARS 6-704) in motion and mandates that all debt management companies operating in the state obtain a Debt Management Bond. Jet, as the surety company, makes the fiscal promise to the AZDFI that victims of fraud, deceptive practices, or unlawful fees will receive money, up to the bond limit, for losses sustained at the hands of the debt management company.

The AZDFI isn’t going to let anybody become a debt manager. They want a third party, like Jet, to provide a cash promise, in the form of the surety bond, to allow a debt manager to get to work. Jet’s goal is to have your back at the smallest cost possible to you.

How Does the Application Process Work With Jet?

The online application from Jet takes minutes and will ask for the owner’s social security number and other basic business information. A soft credit check will be conducted, only takes seconds, and will not affect your credit score.

The bond will be available to be purchased right away in most cases, and once completed, a downloadable copy will be available.

How Does the Debt Management Bond Get Filed to the AZDFI?

Fear not, as Jet will complete the bond filing process for you. We will electronically file the original signed and sealed Debt Management Bond with the Arizona Department of Financial Institutions. We will also provide you with a copy for your own records in the mail.

You have the choice during bond checkout to file the original bond along with your license renewal or new license application. The original bond form and license paperwork (if necessary) should be electronically filed through the AZDFI’s license portal.

Debt Management companies can use the Nationwide Multistate Licensing System & Registry (NMLS) to take care of their licensing requirements. Filing of the bond can be completed through upload of a bond form to the NMLS within their document upload section.

All other paperwork unrelated to the bond filing should be submitted to the following mailing address:

Arizona Department of Financial Institutions
100 N 15th Ave, Suite 261
Phoenix, AZ 85007

APPLY FOR DEBT MANAGEMENT BOND

Can I Cancel My Bond and Get a Refund?

Yes, the Debt Management Bond can be cancelled by reaching out to Jet through mail or e-mail. Jet will cancel the bond with the AZDFI, but the bond will remain active for a 30-day cancellation period with the AZDFI. 

A refund will be provided after the unearned premium is calculated by Jet that must include the 30 day period as the bond remains active at that time. The refund process is the same for monthly payment subscribers, as Jet will have to wait 30 days before the auto-withdrawal will stop.

Will I Need to Renew My Debt Management Bond?

If you are on Jet’s monthly payment plan, no! The bond will stay active as long as automatic payments continue. In the case that your business’ annual income changes, therefore changing the bond limit, contact Jet via email or phone and we will adjust the bond rate and notify the AZDFI immediately.

If you are on an annual payment plan, Jet will notify you regarding the renewal of your Debt Management Bond through email and mail. If there is a new bond limit, confirm the new bonding amount with Jet to receive your new renewal rate. Jet does not require additional paperwork to renew your bond, only payment. A copy of the updated bond and receipt of purchase will be sent to you immediately.

How Does a Debt Management Company Avoid Complaints and Ultimately a Bond Claim?

Before conducting any business in Arizona, debt management companies should be well aware of the regulations, rules, and lawful duties they must follow, pursuant to Arizona Statutes 6-709. To save time, Jet has summarized the most important points below:

Violations and means for a bond claim includeLawful duties include
Falsifying mandatory fees to collect more money in defiance of a previous agreementMaintaining liquid assets worth $2,500 in excess of business liabilities, at all times
Releasing private client information with an outside partyEstablishing a written contract between the debtor and creditor in which a copy should should be furnished to both parties
Paying a bonus to any person for the referral of a debtor to their business for commissionAccurately charging the debtor 0.25% of indebtedness or $50, whichever is less, monthly in addition to debtors deposited funds
False advertising of interest rates or fees the debt management company provides to a debtorKeeping accurate accounting records to be available for the AZDFI superintendent to investigate at any time
Receiving a letter of credit, promissory note, real estate, or property as payment for a feeNot changing the legal name or location of the debt management company, unless 15 days written notice is submitted and approved by the AZDFI
Attempting to modify scheduled payments from original application from the debtor to a schedule not previously agreed onFurnishing the debtor with a written statement of his account or verbal accounting at any time the debtor requests it
Operating or labeling the debt management company as a collection agencyAllowing the debtor full benefit of compromise of debt with the debt management company or any other creditor at hand
Engaging in lending operations with debtors who cannot reasonable pay their debts, even with assistanceAbiding by bonding requirements and financial responsibilities as stated by the AZDFI
Breaking written contract by failing to abide by objectives previously agreed upon by the debtor and creditorDealing in honest, open, and reasonable conduct of the debt management business
Arizona Debt Management Company Complaints

A complaint may be filed to the AZDFI by any client who has been financially damaged by a debt management company. The AZDFI would investigate the complaint, and if necessary, pursue disciplinary action against the company.

There is a three year time window from the date of the incident of which claims can be filed against a debt management company. If the debt management company breaches their contract, such as charging a higher interest rate or imposes fees not previously agreed on with their client, their client can place a claim on the surety bond.

What Happens if I Get a Bond Claim?

Reach out to Jet immediately and send all relevant information pertaining to your case to Jet. We will conduct an investigation on your behalf and defend you against false claims.

Should the claim be validated, payment up to the maximum bond limit will be provided by Jet to those who have been financially damaged. That being said, the debt management company is still responsible for their actions and therefore must refund the surety company for paid out claims. With surety bonds, Jet acts as an intermediary to get necessary funds to damaged parties, but the debt still remains to be taken care of by the debt management company. Does this transfer of debt obligations sound similar?

Arizona Debt Management Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: