Oregon Debt Management Service Provider Bond

Oregon Debt Management Service Provider Bond

A $25,000 surety bond is a registration requirement for debt management service providers in Oregon, which is enforced by the Department of Consumer and Business Services (DCBS), Division of Financial Regulation. The Debt Management Service Provider Bond is financial protection for the public when dealing with debt management service providers that act dishonestly. All documentation, including the surety bond, is to be uploaded and managed through the Nationwide Multistate Licensing System (NMLS).

APPLY FOR BOND

There are many advantages to working with Jet including: No fees, monthly payment options, and being able to buy the bond online in minutes!

How Much Does the Mortgage Lender Bond Cost in Oregon?

Jet has the best pricing for the Debt Management Service Provider Bond with the lowest price being $25 monthly or $250 for a one-year term. A soft credit check will be required to establish your rate. The chart below shows examples of pricing based on a preferred credit rating.

Debt Management Service Bond Cost
Term Cost
Monthly $25
1 Year $250
2 Years $438
3 Years $625
 

Jet’s monthly payment option is one of a kind - no other carriers, or their agents, offer installments for the Debt Management Service Provider Bond.

How to Know If You Need the Debt Management Service Provider Bond

You are classified as a debt management service provider, and will need the proper surety bond, if you perform the following services: 

Exemptions from the debt management service provider registration and bond include employees of the service provider, an attorney licensed to practice law in Oregon, financial institutions, mortgage brokers and bankers, and consumer reporting agencies. Further definitions and exemptions can be found in ORS 697.612

Can Jet File the Bond For Me?

Jet will help you file the electronic surety bond through the NMLS. After getting an approved rate and making payment, login or create your account in the NMLS, click “Surety Bond”, then click “Surety Entity Access” to find Jet Insurance Company. From there we take care of the bond form. Here is the rest of the NMLS electronic surety bond process:

Jet can easily make updates to your bond within the NMLS. If your business address changes or you need to cancel your bond Jet will take care of it, just let us know.

How Does a Principal Avoid Bond Claims?

According to the Oregon Revised Statutes 697.718, you will be held liable for violations that lead to a consumer’s financial loss. A debt management service provider that charges fees other than those allowed by law (see ORS 697.692) would be in direct violation of the statutes which could lead to a bond claim. 

A consumer has the right to file a bond claim, as well as the DCBS. The DCBS will conduct their own investigation prior to pursuing any legal action against the debt management service provider registration or bond. The DCBS requires the licensee to return all sums paid by the consumer upon a contract being voided, including attorney fees.

Civil penalties from the DCBS may be imposed upon you with fees up to $5,000 per violation. Paying for the violation does not remove it from your record, and you will still be held liable to abide by any ORS restrictive provisions throughout the remainder of your registration.

Oregon Revised Statute 697.752 lists the grounds DCBS has for revoking, suspending, or denying the registration of a debt management service provider which includes dishonest, fraudulent and illegal activities. 

What Happens If I Get a Bond Claim?

Jet does their part to defend you in the event of a bond claim. Claims that come from the DCBS are thoroughly investigated before reaching Jet, so there is little Jet can do other than accept the claim and pay it out. Jet will ask you to provide all documentation that is present for the time of the incident.

Debt Management Service Provider Bond claims that come from the public will be fully investigated to determine the claims validity. If within 45 days of investigation Jet finds that you acted fraudulently in your actions as a debt management service provider, the claim will be paid to the party who experienced financial loss. Because the surety bond only pays out when a debt management service provider is found guilty of negligence, Jet will need to be reimbursed for the money paid for the claim. 

When a license bond has a claim paid out on it and the licensee wishes to continue to work as a debt management service provider, the bond claim payment needs to be completed to Jet and another bond must be put in place to continue doing business.

At any time, the DCBS has the authority to revoke or suspend the debt management service provider’s registration.

What Is the Purpose of the Debt Management Service Provider Bond? 

The Department of Consumer and Business Services has the responsibility of making and overseeing regulations for many businesses within the financial industry, including debt management service providers. A surety bond is one of the major requirements to protect the public and DCBS financially from debt management service provider wrongdoings, such as accepting fees for services not provided. The bond will cover the financial loss(es) up to the bond limit of $25,000.

How Does Jet’s Application Process Work? 

Jet’s online bond process is quick - once you receive an approved rate and the payment and bond processing takes seconds! All you need to do is verify some basic business information including name, address, phone number, and bond effective date.

APPLY FOR DEBT MANAGEMENT SERVICE BOND

How to Renew the Bond

Debt Management Service Provider Bonds paid for on monthly terms with Jet don’t need to be renewed! The payments will continuously come out of your account. If any changes happen to your business just let us know and we stop payments or make necessary changes with the NMLS.

Choosing to pay annually means you will receive a renewal invoice from Jet. Once payment is made we ensure your bond stays on file for the duration paid for.

Oregon Debt Management Service Provider Bond Form