Missouri Debt Adjuster Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain Missouri Debt Adjuster Bonds
At a Glance:
- Lowest Cost: $1,500 per year or $150 per month based on the applicant’s credit
- Bond Amount: $100,000
- Who Needs it: All debt adjusters operating in Missouri
- Purpose: To ensure the public will receive compensation for any damages should the debt adjuster breaches any contracts made with consumers
- Who Regulates Debt Adjusters in Missouri: The Missouri Division of Finance
Background
Missouri statute 425.027 requires all debt adjusters operating in the state to file a $100,000 surety bond with the Division of Finance. The Missouri legislature enacted the bonding requirement to ensure that debt adjusters engage in ethical business practices. There is currently no license requirement for Missouri debt adjusters.
What is the Purpose of the Missouri Debt Adjuster Bond?
Missouri requires debt adjusters to purchase a surety bond as a prerequisite to conducting business operations. The bond ensures that the public will receive compensation for financial harm if the debt adjuster fails to comply with the regulations set forth in Missouri statute 425.027. Specifically, the bond protects the public in the event the debt adjuster violates any debt management agreements or fails to utilize a debtor’s funds for the payment of creditors. In short, the bond is a type of insurance that protects consumers if the debt adjuster acts unethically.
How Can an Insurance Agent Obtain a Missouri Debt Adjuster Surety Bond?
BondExchange makes obtaining a Missouri Debt Adjuster Bond easy. Simply login to your account and use our keyword search to find the “debt” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Missouri Debt Adjuster Bond?
Surety companies will run a credit check on the owners of the debt adjusting company to determine eligibility and pricing for the Missouri Debt Adjuster bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Missouri Debt Adjuster Bond Cost?
The Missouri Debt Adjuster bond can cost anywhere between $1,500 to $7,500 per year or $150 to $750 per month. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $100,000 bond requirement.
$100,000 Debt Adjuster Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 800+ | $1,500 | $150 |
| 650 – 799 | $2,000 | $200 |
| 600 – 649 | $4,000 | $400 |
| 550 – 599 | $5,000 | $500 |
How Does Missouri Define “Debt Adjuster”?
Missouri statute 425.010 defines a debt adjuster as any individual or business entity who renegotiates, settles, or in any way alters the terms of payment or other terms of the debt between a debtor and one or more creditors.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
Do Debt Adjusters in Missouri Need to Obtain a License?
No, Missouri does not require debt adjusters to obtain a business license. The only prerequisite to conducting business operations for debt adjusters in Missouri is to file a $100,000 surety bond with the Missouri Department of Finance.
What are the Insurance Requirements for the Missouri Debt Adjuster License?
Missouri does not require debt adjusters to purchase any form of liability insurance as a prerequisite to obtaining a business license. Debt adjusters must purchase and maintain a $100,000 surety bond.
How Do Missouri Debt Adjusters File Their Bond?
Debt adjusters should mail the completed bond form, including the power of attorney, to the following address:
Division of Finance
301 West High Street, Room 630
P.O. Box 716
Jefferson City, MO 65102
The debt adjuster surety bond requires signatures from both the surety company that issues the bond and a representative from the debt adjustment company. The surety company should include the following information on the bond form:
- Name and location of entity/individual(s) buying the bond
- Surety company’s name
- Date the bond is signed
What Can Missouri Debt Adjusters Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, debt adjusters in Missouri must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not breach any debt adjustment agreements made with consumers
- Properly utilize debtor funds for the payment of debts
What Other Insurance Products Can Agents Offer Debt Adjusters in Missouri?
Missouri does not require debt adjusters to purchase any form of liability insurance as a prerequisite to conducting business. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Missouri Debt Adjuster Customers?
Missouri conveniently provides a public database to search for active debt adjusters in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
