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.
Jet provides this bond online, and can be purchased in minutes. Just click the link above to get the bonding process started.
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 Disbursements||Bond Amount||Monthly||Annual|
|$100k or less||$5,000||$10||$100|
|$1mil and up||$25,000||$38||$375|
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.
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.
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.
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
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.
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.
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 include||Lawful duties include|
|Falsifying mandatory fees to collect more money in defiance of a previous agreement||Maintaining liquid assets worth $2,500 in excess of business liabilities, at all times|
|Releasing private client information with an outside party||Establishing 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 commission||Accurately 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 debtor||Keeping 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 fee||Not 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 on||Furnishing 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 agency||Allowing 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 assistance||Abiding 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 creditor||Dealing in honest, open, and reasonable conduct of the debt management business|
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.
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?