North Carolina Collection Agency License Surety Bond
No person, firm, corporation, or association may conduct or operate a collection agency or do a collection agency business within the state of North Carolina until they have secured a permit from the North Carolina Department of Insurance.
Domestic Collection Agencies
North Carolina General Statute § 58-70-20(a) requires a Collection Agency License Surety Bond, prior to the issuance of a Collection Agency permit, in favor of the State of North Carolina. The bond amount required for the initial permit period is $10,000.00.
Foriegn and Alien Collection Agencies
Foreign and Alien applicants for initial and renewal permits are required to submit an additional bond as required by North Carolina General Statute G.S. § 58-70-20(c). The initial bond amount required for the initial permit period is $10,000.00 for a Foreign Collection Agency and $20,000.00 for an Alien Collection Agency
The bond requirement may change at the renewal of the permit and may range from a $10,000.00 - $75,000.00 surety bond requirement which is based on the total collections paid directly to the collection agency less any commissions earned by the collection agency for the calendar year ending immediately prior to the date of application/renewal, multiplied by one-sixth.
By definition a Collection Agency means a person directly or indirectly engaged the solicitation, from more than one person delinquent claims of any kind owed or due or asserted to be owed or due the solicited person and all persons directly or indirectly engaged in the asserting, enforcing or prosecuting of those claims.
All North Carolina Collection Agency License Surety Bonds expire and must be replaced on or before June 30th each year.