HB 4781 of Illinois
requires debt settlement providers to be licensed and post a surety bond
. Originally, the bill would have required a minimum $1 million, but the bill was amended to reduce the bond amount to $100,000. The Director of the Division of Financial Institutions may require a larger bond amount based on the disbursements that the provider made in the previous year. The bond must be issued by an insurance company licensed in the State to transact the business of fidelity and surety insurance. SFAA and AIA worked on obtaining amendments to the bond amount. The new law became effective upon enactment.