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).

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

How Much Does the Debt Management Service Provider Bond Cost?

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.

Bond TermCost
Monthly$15
1 Year$150
2 Years$263
3 Years$375
Debt Management Service Provider Bond Cost

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, log in 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:

NMLS Electronic Surety Bond Filing 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.

Can I Cancel My Bond and Get a Refund?

Yes, with Jet you can! Other surety companies charge cancellation fees and even keep minimum earned premiums when there could be some money left to be returned to you. They get away with this by putting such language in the indemnity agreement. Jet would never act in that manner. 

If you need to cancel the bond at any time just let us know. The DCBS requires a 30-day notice before they can take the bond off file. With that in mind, Jet will calculate a prorated refund to return to you factoring in the 30-day period in which the bond is still active. With the monthly payment option, no refund even needs to be calculated. Jet will stop the automatic payments from coming out of your account when the 30-day period ends.

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 its 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?

At Jet, we do our 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 at the time of the incident.

Debt Management Service Provider Bond claims that come from the public will be fully investigated to determine the claim's 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.

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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

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: