New Hampshire Debt Adjuster Bond: A Comprehensive Guide

July 22, 2021

This guide provides information for insurance agents to help their customers obtain New Hampshire Debt Adjuster Bonds

At a Glance:

• Average Cost: 
  • $250 per year for the $25,000 bond requirement
  • Between $1,500 to $7,500 per year for the $100,000 bond
• Bond Amount: 
  • $25,000 for debt adjusters
  • $100,000 for debt adjusters who transmit money
• Who Needs it: All debt adjusters operating in New Hampshire
• Purpose: To ensure the public will receive compensation for any damages should the debt adjuster violate licensing law
• Who Regulates Debt Adjusters in New Hampshire: The New Hampshire Banking Department

Background

New Hampshire statute 399-D:3 requires all debt adjusters operating in the state to obtain a license with the Banking Department. The New Hampshire legislature enacted the licensing laws and regulations to ensure that debt adjusters engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, debt adjusters must purchase and maintain a surety bond to be eligible for licensure.

What is the Purpose of the New Hampshire Debt Adjuster Bond?

New Hampshire requires debt adjusters to purchase a surety bond as part of the application process to obtain a business license. 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 New Hampshire statutes 399-D. Specifically, the bond protects the public in the event the debt adjuster fails to account for funds received or breaches any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the debt adjuster breaks licensing laws.

How Can an Insurance Agent Obtain a New Hampshire Debt Adjuster Bond?

BondExchange makes obtaining a New Hampshire 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? Enroll 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.

Is a Credit Check Required for the New Hampshire Debt Adjuster Bond?

Surety companies will run a credit check on the owners of the debt adjustment company to determine eligibility and pricing for the $100,000 New Hampshire Debt Adjuster bond. The $25,000 bond is considered low risk enough that surety companies issue the bond to all applicants at the same rate regardless of their credit. For the $100,000 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 New Hampshire Debt Adjuster Bond Cost?

The New Hampshire Debt Adjuster Bond can cost anywhere between $250 to $7,500 per year. 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 both the $25,000 and $100,000 bond requirements.

$25,000 Debt Adjuster Bond Cost

The $25,000 New Hampshire Debt Adjuster bond costs just $250 per year.

$100,000 Debt Adjuster Bond Cost

How Does New Hampshire Define “Debt Adjuster?”

New Hampshire statute 399-D:2 defines a debt adjuster as any business entity who provides one or more of the following services:

• Provides debt management advice or counseling to consumers
• Creates debt management plans for consumers
• Negotiates with one or more creditors on behalf of a consumer
• Receives money from a consumer and distributes the funds to the consumer’s creditor(s)

How do Debt Adjusters Apply For a License in New Hampshire?

Debt adjusters in New Hampshire must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the NMLS’s application guidelines for details on the process.

License Period – The New Hampshire Debt Adjuster License expires on December 31 of each year and must be renewed before the expiration date

Step 1 – Meet the Net Worth Requirements

Applicants for the New Hampshire Debt Adjuster License must have a positive company net worth (assets – liabilities). Applicants must submit an audited financial statement verifying their net worth when submitting their license application.

Step 2 – Purchase a Surety Bond

Debt adjuster must purchase and maintain a surety bond with the following limit:

• • $25,000 for debt adjusters
  • $100,000 for debt adjusters who transmit money

Step 3 – Request a NMLS Account

The New Hampshire Debt Adjuster License application is submitted electronically through the Nationwide Multistate Licensing System (NMLS). To submit a license application, applicants must first request to obtain an NMLS account.

Step 4 – Complete the Application

All New Hampshire Debt Adjuster License applications can be completed online through the NMLS. Applicants must complete the entire application, and submit the following items:

• • Company financial statements showing a positive company net worth
  • The following company contacts:
    • Primary
    • Primary consumer complaint
    • Exam Billing
    • Exam Delivery
    • Litigation
    • Pre-Exam Contact
  • Account information for all bank accounts used for the benefit of creditors and debtors’ trust accounts
  • Disclosure questions
  • Company business plan containing the following information:
    • Marketing strategies
    • Products
    • Target markets
    • Fee schedule
    • Operating structure
  • Certificate of Good Standing
  • Company staffing and internal policies
  • Samples of all documents used in the regular course of the debt adjusting business
  • Sample debt management agreement used with consumers
  • Company formation documents
  • Management chart detailing the company’s hierarchy
  • Organization chart detailing the company’s ownership structure
  • Affirmation form
  • Form U-2
  • List of all debt adjustment activity conducted prior to licensure

Debt adjuster must pay the following fees when submitting their license application:

• • $500 license fee
  • $36.25 background check fee (per person)
  • $15 credit report fee (per person)

How Do New Hampshire Debt Adjusters Renew Their License?

Debt adjusters can renew their license online through the NMLS. License holders need to simply login to their account to access their renewal application. The New Hampshire Debt Adjuster License expires on December 31 of each year and must be renewed before the expiration date.

What Are the Insurance Requirements for the New Hampshire Debt Adjuster License?

New Hampshire does not require debt adjusters to purchase any form of liability insurance as a prerequisite to obtaining a business license. Debt adjuster must purchase and maintain a surety bond with the following limit:

• $25,000 for debt adjusters
• $100,000 for debt adjusters who transmit money

How Do New Hampshire Debt Adjusters File Their Bond?

New Hampshire debt adjusters should submit the completed bond form, including the power of attorney, electronically through the NMLS. The surety bond requires signatures from both the surety company that issues the bond and a representative from the debt adjusting company. The surety company should include the following information on the bond form:

• Name and state of incorporation of entity/individual(s) buying the bond
• Surety company’s name and state of incorporation
• Date the bond is signed

What Can New Hampshire Debt Adjusters Do to Avoid Claims Against Their Bond?

To avoid claims on their bond, debt adjusters in New Hampshire must follow all license regulations in the state, including some of the most important issues below that tend to cause claim

• Do not engage in any acts of fraud
• Do not breach any contracts made with consumers
• Properly account for all funds received from consumers

What Other Insurance Products Can Agents Offer Debt Adjusters in New Hampshire?

New Hampshire does not require debt adjusters to purchase any form of liability insurance as a prerequisite to obtaining a business license. 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 New Hampshire Debt Adjuster Customers?

The NMLS conveniently provides a public database to search for active debt adjusters in New Hampshire. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.