1. (a) The Department may require that any class or subclass of licensees licensed under the authority of this subchapter to engage in a business, trade, profession, or calling involving an express or implied agreement to collect money for others shall give bond to safeguard against financial loss those persons with whom such class or subclass of licensees may so agree.
2. (b) The bond required by subsection (a) of this section shall be a corporate surety bond in an amount to be fixed by the Council, but not to exceed $15,000, conditioned upon the observance by the licensee and any agent or employee of the licensee of all laws and regulations in force in the District applicable to the licensee's conduct of the business, trade, profession, or calling licensed under the authority of this subchapter for the benefit of any person who may suffer damages resulting from the violation of any such law or regulation by or on the part of such licensee, his agent, or employee.

3. (c)

   1. (1) A person aggrieved by the violation of any law or regulation applicable to a licensee's conduct of a business, trade, profession, or calling involving the collection of money for others shall have, in addition to his right of action against such licensee, a right to bring suit against the surety on the bond authorized by this section, either alone or jointly with the principal thereon, and to recover in an amount not exceeding the penalty of the bond any damages sustained by reason of any act, transaction, or conduct of the licensee and any agent or employee of the licensee that is in violation of law or regulation in force in the District of Columbia relating to the business, trade, profession, or calling licensed under this subchapter; and
   2. (2) The provisions of § 1-301.01(b)(2), (3), and (5), except for the last sentence of § 1-301.01(b)(3), shall be applicable to such bond as if it were the bond authorized by § 1-301.01(b)(1); provided, that nothing in this subsection shall be construed to impose upon the surety on any such bond a greater liability than the total amount thereof or the amount remaining unextinguished after any prior recovery or recoveries.

4. (d) This subsection shall not be applicable to persons when engaged in the regular course of any of the following professions or businesses:

   1. (1) Attorneys-at-law;
   2. (2) Persons regularly employed on a regular wage or salary, in the capacity of credit men or in a similar capacity, except as an independent contractor;
   3. (3) Banks and financing and lending institutions;
   4. (4) Common carriers;
   5. (5) Title insurers and abstract companies while doing an escrow business;
   6. (6) Licensed real estate brokers; or
   7. (7) Employees of any class or subclass of licensees required to give bond under this subsection.".

Applicability of D.C. Law 24-333: § 9 of D.C. Law 24-333 provided that the creation of this section by § 5(c)(25) of D.C. Law 24-333 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

Section 7286 of D.C. Law 25-217 provided that the amendments made to this section by Section 5(c)(25) of D.C. Law 24-333 shall apply as of October 1, 2025. Therefore those amendments have been implemented.

History

Mar. 22, 2023, D.C. Law 24-333, § 5(c)(25)

Applicability

Applicability of D.C. Law 24-333: § 9 of D.C. Law 24-333 provided that the creation of this section by § 5(c)(25) of D.C. Law 24-333 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

Section 7286 of D.C. Law 25-217 provided that the amendments made to this section by Section 5(c)(25) of D.C. Law 24-333 shall apply as of October 1, 2025. Therefore those amendments have been implemented.

Section 7286 of D.C. Law 25-217 amended section 9 of D.C. Law 24-333 making the creation of this section by section 5(c)(25) of D.C. Law 24-333 applicable as of October 1, 2025.