(A) A credit counseling organization may not offer or agree to offer credit counseling services in this State without first filing a surety bond with the department. The amount of the surety bond must equal or exceed the total amount of South Carolina clients' funds in the applicant's or licensee's trust account at the time of application for license or renewal, as determined by the department, but the surety bond must be at least twenty-five thousand dollars. The surety bond is conditioned upon the faithful accounting of all money collected upon accounts entrusted to a credit counseling organization engaged in the business of credit counseling or its employees and agents.
(B) The surety bond must be:
(1) approved by the department;
(2) executed by a surety company authorized by the laws of this State to transact business within this State;
(3) executed to the State of South Carolina;
(4) for the use of the State and any consumers with a cause of action against the credit counseling organization; and
(5) maintained for three years after revocation, denial, or failure to renew license.
HISTORY: 2005 Act No. 111, Section 1, eff 6 month after approval by the Governor (became law without the Governor's signature on June 2, 2005).
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