District of Columbia § 28-4604 Bond requirements.

District of Columbia Statutes

§ 28-4604 — Bond requirements.

District of Columbia·Title 28 Commercial Instruments and Transactions. [Enacted title]·Ch. 46 Consumer Credit Service Organizations.

(a)A consumer credit service organization that charges or receives money or other valuable consideration prior to completion of services under a contract or agreement shall obtain a surety bond or establish a trust account that guarantees a refund to a consumer of any money or other valuable consideration paid by the consumer. The bond shall be in the amount of $25,000 and issued by a surety company legally allowed to do business in the District. A trust account established to guarantee a refund to a consumer shall have a minimum balance of $25,000 and be deposited at a federally insured bank or savings and loan association located in the District.

(b)Funds from the bank account or surety bond shall be used to refund payment to a consumer who cancels a contract, to pay any damages asses

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(a) A consumer credit service organization that charges or receives money or other valuable consideration prior to completion of services under a contract or agreement shall obtain a surety bond or establish a trust account that guarantees a refund to a consumer of any money or other valuable consideration paid by the consumer. The bond shall be in the amount of $25,000 and issued by a surety company legally allowed to do business in the District. A trust account established to guarantee a refund to a consumer shall have a minimum balance of $25,000 and be deposited at a federally insured bank or savings and loan association located in the District.

(b) Funds from the bank account or surety bond shall be used to refund payment to a consumer who cancels a contract, to pay any damages assessed against a consumer credit service organization in an action arising from a violation of this chapter, or to settle a consumer complaint filed with the Mayor against a consumer credit service organization.

District of Columbia § 28-4604 (Bond requirements.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.