What Is a Connecticut Debt Adjuster or Debt Negotiator Bond?
Connecticut debt adjuster and negotiator license surety bonds protect consumers from unfair or unethical debt management practices. The bond terms prohibit providers from engaging in fraud or misrepresentation while dealing with clients. These bonds are required for licensing with the Connecticut Department of Banking.
How Much Do Connecticut Debt Adjuster/Negotiator Bonds Cost?
Connecticut debt adjuster bond requirements vary based on the value of annual transactions — starting at $40,000. Verify your bond coverage amount with the state before purchasing. Bond rates typically start at 1–2% for qualified applicants. Request a free quote today for your personalized cost.
The state requires a $50,000 debt negotiation license bond. You can expect to pay a premium rate of 1–10% depending on your personal credit score. That means you could pay as low as $500 with strong credit. Apply for a free quote below.
Bond premium financing is available for select bonds. Ask your account representative if you qualify for financing after you apply.
How Does a Connecticut Debt Adjuster or Debt Negotiation License Bond Work?
A Connecticut debt adjuster or debt negotiation license bond joins three parties in a legally-binding contract:
- Principal: The debt adjuster/negotiator
- Obligee: The Connecticut Department of Banking
- Surety: The surety bond provider
The obligee requires the bond from the principal (debt services provider) and the surety backs the principal’s obligation. If the bonded principal causes damages or breaks the bond terms, the bond acts as a line of credit to pay harmed parties. However, the principal must reimburse the surety for any claims.
Who Needs a Debt Adjuster/Negotiator License Bond?
In Connecticut, both for-profit and non-profit debt adjusters must be licensed with the Department of Banking through the NMLS. Per Connecticut Statutes §§ 36a-655 to 36a-665, debt adjustment is defined as receiving money or evidence of funds for the purpose of distributing it among creditors to repay debtors.
Licensed debt negotiation service providers also need a surety bond in Connecticut. Debt negotiation includes doing any of the following activities for compensation:
- Helping a debtor negotiate the terms of their obligations with their creditors
- Negotiating terms on behalf of a debtor with their creditors
- Negotiating short sales of residential property or foreclosure rescue services with mortgagees
There is a separate bond form for unsecured versus secured debt negotiation licenses. Ensure that you select the correct type when you apply.
How to Get a Debt Adjuster or Debt Negotiation Bond in Connecticut
SuretyBonds.com provides the fastest and easiest way to get a Connecticut debt adjustment or negotiation license bond. Just follow these quick steps:
- Apply: Complete the online application form.
- Quote: Receive a free quote within one business day.
- Purchase: Pay for your bond and e-sign the indemnification agreement.
We’ll upload the bond directly to the NMLS on your behalf and email you a copy for your records.
How to Become a Debt Adjuster in Connecticut
To get a Connecticut debt adjuster license with the Department of Banking, you’ll need to register your company through the NMLS and submit these three forms:
- Company Form (MU1) and supporting materials
- Control Person Records Form (MU2) and supporting materials
- Relevant Branch Records Form (MU3) and supporting materials
If you have any application-specific questions, call the NMLS at (855) 665-7123.
How to Become a Debt Negotiator in Connecticut?
To get your Connecticut debt negotiation license, you’ll need to apply through the NMLS and submit the following materials:
- $50,000 surety bond
- $800 license fee
- $100 NMLS processing fee
- Financial statement prepared by a CPA
- Company Form (MU1) and supporting materials
- Control Person Records Form (MU2) and supporting materials
- Certificate of Authority/Good Standing Certificate from the state
- Sample Debt Negotiation Service Contract
- Company formation documents
- Management chart
See more details in the resources linked below.
More Resources
- CT Department of Banking; Debt Adjuster Licensing
- CT Debt Adjuster Electronic Surety Bond Form
- NMLS: Connecticut State Licensing Requirements
- NMLS: CT Debt Negotiation License New Application Checklist (Company)
- NMLS: CT Debt Adjuster For-Profit License New Application Checklist (Company)
- NMLS: CT Debt Adjuster Non-Profit License New Application Checklist (Company)
