What Is an Illinois Debt Management or Debt Settlement Bond?
Illinois debt management and settlement 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 Illinois Department of Professional Regulation (DBPR) – Division of Banking.
How Much Do Illinois Debt Management/Settlement License Bonds Cost?
The state-required $25,000 debt management bond costs a flat rate of $375 for all applicants. No credit check or application is required. Select Buy Now below to get your bond instantly.
The $100,000 Illinois debt settlement consumer protection license bond requires underwriting review to determine pricing. You can expect to pay a premium rate of 1.5–10%. That means you could pay as low as $1,500 if you have strong credit. Request your free quote below.
Learn more about how surety bond rates are calculated here.
How Does an Illinois Debt Management/Settlement Bond Work?
An Illinois debt management or debt settlement consumer protection license bond joins three parties in a legally-binding contract:
- Principal: The debt management/settlement services provider
- Obligee: The Illinois DBPR, Division 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 breaches the contract, the bond acts as a line of credit to pay the obligee or harmed parties for financial damages. However, the principal must reimburse the surety for any claims.
Who Needs a Debt Management/Settlement License Bond?
Any person or entity soliciting or providing debt settlement services for compensation in Illinois must be licensed and bonded per the Debt Settlement Consumer Protection Act (225 ILCS 429). This includes debt settlement providers and debt adjusters.
Additionally, any person who intends to operate a debt management or credit counseling service or provide debt management services as authorized by the Debt Management Service Act (205 ILCS 665) must get an Illinois debt management license and surety bond.
How Do I Get a Debt Management/Settlement License Bond in Illinois?
SuretyBonds.com provides the fastest and easiest way to get an Illinois debt service provider bond. If you’re applying for a debt management license, simply purchase your bond instantly online and we’ll file the bond with the NMLS on your behalf.
If you need an Illinois debt settlement consumer protection license, follow these quick application steps:
- Complete the online request form.
- Receive a free quote within one business day.
- Purchase 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 Get a Debt Management License in Illinois
To get your Illinois debt management license, you’ll need to apply through the NMLS and submit the payments and documents outlined below.
Fees
- $130 license fee
- $15 per control person credit report fee
Required Forms and Documents
- Company form MU1 with supporting documents attached
- Individual form MU2 with supporting documents attached
- Unaudited financial statement for the prior year, prepared by a CPA and signed by an executive officer
- Detailed business plan
- Certificate of Authority/Good Standing from the state
- Company staffing and internal policies documentation
- IDFPR-specific Debt Management Agreement
- Company formation documents
- Organization chart
- $25,000 surety bond
See more details in the resources linked below.
How to Get a Debt Settlement Consumer Protection License in Illinois
To get your Illinois debt settlement license, you’ll need to apply through the NMLS and submit the payments and documents outlined below.
Fees
- $1,000 registration fee
- $350 application fee
- $15 per control person credit report fee
Required Forms and Documents
- Company form MU1 with supporting documents attached
- Individual form MU2 with supporting documents attached
- Unaudited financial statement for the prior year, prepared by a CPA and signed by an executive officer
- Detailed business plan
- Certificate of Authority/Good Standing from the state
- Company staffing and internal policies documentation
- Copy of proposed Debt Settlement Agreement
- Copy of proposed Debt Settlement Budget Analysis Form
- Company formation documents
- Organization chart
- $100,000 surety bond
See more details in the resources linked below.
More Resources
- NMLS: IL Debt Settlement Consumer Protection License New Application Checklist (Company)
- NMLS: Debt Settlement License Renewal
- NMLS: IL Debt Management License New Application Checklist
- NMLS: Debt Management License Renewal
- Illinois Debt Management Service Act
- Debt Settlement Consumer Protection Surety Bond Form
- Debt Management Surety Bond Form
