Governor Phil Bresden of Tennessee signed the Uniform Debt Management Services Act into effect Tuesday, June 23, 2009.
This newly-passed law requires debt management companies to
- post a surety bond or another security to protect the money received from clients
- obtain a license
- supply information about their employee qualifications, educational materials, practices and fees
- disclose that using the service may affect customers’ credit ratings
These surety bonds will protect clients who give credit payment money to debt management companies in Tennessee. The bond will also guarantee that the client’s money remains safe once in the company’s possession.