The Texas Office of Consumer Credit Commissioner (OCCC) requires consumer debt management businesses to be registered with their department. A Consumer Debt Management Services Bond is required of the business owner to be approved for and maintain registration.
Jet Insurance Company provides the Debt Management Services Bond as an assurance to the OCCC that the licensee will perform all debt management services such as credit repair, home loan modifications, and budget counseling up to regulation. If the licensee commits a violation such as criminal malfeasance or fraud, the surety bond may be used as restitution for losses incurred by the damaged consumer.
Our team at Jet doesn’t work with middlemen agents and brokers, meaning there is no time wasted in getting you your Debt Management Service Bond.
The Texas Debt Management Services Bond has a custom amount that is based on whether the service provider is in control of consumer money or not. If the provider does not hold consumer money, the required bond amount is $50,000. If the provider does, then the bond amount must be equal to the average balance in the provider’s trust account for a six-month period.
For debt management providers who are applying for an initial license, the Commissioner of the OCCC will determine your bond amount. The custom amount can be no less than $25,000 and no more than a $100,000 limit.
Jets rates for the Debt Management Services Bond are a small percentage of the required custom limit and are based on personal credit. For higher bond amounts, further details such as business financials may be needed. Rates with Jet start at $250 annually or $25 monthly for the $25,000 bond limit.
Debt management businesses provide consumers with advice and services that impact their financial well-being. The Debt Management Services Bond is required by the Texas Office of Consumer Credit Commissioner to ensure that any person of the public will be protected against the provider in cases where misleading or fraudulent services are given to the consumer. If a license violation is committed by the debt management provider, the surety bond will act as a financial guarantee for the damaged consumer and will cover any losses they endure due to the provider’s transgressions.
Applying for the Debt Management Services Bond with Jet only takes a few minutes! Our online application will guide you through each step and will require info such as your contact details, social security number, and possibly your business financial information. Our underwriters only perform soft credit checks so this step will not have an effect on your current score.
Once your completed application has been submitted and reviewed, Jet will send you approved rate options that are ready for immediate purchase. Simply choose the best plan for you, and once you’ve fulfilled the payment, Jet will send you a copy of your bond form and receipt right away!
Yes, the Jet team can file the Debt Management Services Bond for you at no additional cost! However, if you would prefer to file your bond form yourself, this option may be selected at checkout. The original signed and sealed Debt Management Services Bond must be submitted to the Texas Office of Consumer Credit Commissioner at the following mailing address:
Office of Consumer Credit Commissioner
Finance Commission Building
2601 N. Lamar Blvd
Austin, TX 78705
For first-time license applicants, your initial (and renewal) registration is done online through the OCCC online portal ALECS.
No problem, you have the option of cancelling your Debt Management Services Bond with Jet at any time. Simply send us a written cancellation request to our email at [email protected] and we will begin the process. Jet will send a termination notice to the Texas Office of Consumer Credit Commissioner, and once received, the liability of your surety bond will be released within 30 days.
If you are enrolled in Jet’s monthly plan, you will be required to make one last payment during the liability period as your bond is technically still active. Once this has been completed, all future payments with Jet will cease. As for debt management providers who choose to purchase their bond in full and cancel early, Jet will review your account for any unused premium. You will receive a refund for such once your bond has reached its official cancellation date.
You won’t have to worry about renewing your Debt Management Services Bond if you are enrolled in Jet’s monthly payment plan! Your bond will remain active as long as payments are received or until cancellation is officially sought.
If you purchase our annual or multi-year bond terms, the Jet team will send you a renewal invoice prior to your expiration date by mail and email. All you need to do is complete the standard payment due and your surety bond will remain active with the Texas OCCC for another term.
Licensed debt management services providers are expected to follow all rules and regulations stated in Chapter 394 of the Texas Finance Code. Violations of the statutes may result in the Office of Consumer Credit Commissioner charging the debt management business with large fines and suspending or completely revoking their license. Civil action and a bond claim are also possible penalties that may be pursued by a damaged consumer.
Claims on the Debt Management Service Bond typically occur if the provider engages in threats or harassment of consumers, criminal malfeasance, fraud, and unfair or deceptive consumer debt management practices. For example, offering a consumer compensation for entering into a debt management agreement is a deceptive practice and subject to license penalties, as well as a civil action case.
For license violations, official complaints can be made to the OCCC. However, if a consumer is financially damaged due to a license transgression, civil action may be pursued. In cases where civil action is taken and the Texas court rules in favor of the claimant, the Debt Management Services Bond may act as restitution for losses incurred by the damaged consumer.
Immediately contact Jet if you received a Texas court-order claim notice! Once we get in touch, the Jet team will brief you on how the claim process works and will ask that you provide us with all available details and documentation regarding your case. We will utilize this information for our own investigation of the alleged license violation.
Per the Debt Management Services Bond form, Jet is legally obligated to pay out all justified claims up to the bond’s limit. Claim payments will never exceed the bond amount. You, the debt management provider, are ultimately responsible for your own actions and the actions of your employees. Therefore, you must reimburse Jet for the claim payout made on your behalf. An omission to do so will lead to future difficulties in obtaining surety bonds in the State of Texas, which are typically required to achieve a license in the debt management industry.