Copy of bond to be filed with director of finance
A credit services organization (a business that helps people fix or improve their credit) has to get a surety bond or set up a surety account worth $10,000. A copy of the bond or the account details must be sent to the director of finance. If someone is hurt by the organization breaking the law, that person can make a claim against the bond or account to get money back — but the surety or trustee only pays for actual damages, not extra punishment money. The bond or account must be kept for two years after the business closes down.
407.639. Copy of to be filed with — purpose of bond — amount of bond — statement by director of finance. — 1. This section applies to a required by (1) of section 407.638 to obtain a or establish a .
2. If a bond is obtained, a copy of it shall be filed with the director of finance. If a surety account is established, notification of the , the and the account number shall be filed with the director of finance.
3. The bond or surety account required shall be in favor of the state for the of any person who is damaged by any violation of sections 407.635 to 407.644. The bond or surety account shall also be in favor of any person damaged by such a violation.
4. Any person claiming against the bond or surety account for a violation of sections 407.635 to 407.644 may maintain an against the credit services organization and against the or trustee. The surety or trustee shall be only for awarded under subdivision (1) of 1 of section 407.644 and not the permitted under that section. The of the surety or trustee to all persons damaged by a credit services organization's violation of this chapter may not exceed the amount of the surety account or bond.
5. The bond or the surety account shall be in the amount of ten thousand dollars.
6. A depository holding money in a surety account under sections 407.635 to 407.644 shall not money in the account to the credit services organization that established the account or a of the credit services organization unless the credit services organization or representative presents a statement issued by the director of finance indicating that section 407.640* has been satisfied in relation to the credit services organization. The director of finance may conduct investigations and require of as is necessary to this section.
7. The bond or surety account shall be maintained until two years after the date that the credit services organization ceases operations.
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Source & history notes
(L. 1991 S.B. 112 § 4) *Revisor's Note: Words "subsection 6 of section 5" appear in original rolls. Section 5 was codified as section 407.460 by the Revisor, but did not contain a subsection 6.
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