Bond requirements. (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. (Mar. 8, 1991, D.C. Law 8-236, § 5, 38 DCR 306.) Prior Codifications 1981 Ed., § 28-4604. Section References This section is referenced in § 28-4603.
District of Columbia Legal Code