Collection Agency Bond
Are you currently licensed or looking to become licensed as a Collection Agency? As a part of the state licensing requirements the posting of a Collection Agency License Surety Bond may be required in order to operate within certain states. By definition a collection agency is any person, firm, corporation or association that attempts to recover a debt, whether on their own behalf or as a third party collecting for another firm.
Unlicensed and illegally operating collection agencies may be penalized by the state and sued by the debtors they target. State penalties for unlicensed operation of a debt or collection agency can include fines up to $50,000 and imprisonment for up to 10 years.
What is a Collection Agency Surety Bond?
As with most Commercial Surety Bonds, a Collection Agency License Surety Bond is required as part of an individual states licensing requirements. The bond provides a financial guarantee that the licensed firm will comply with and abide by the laws and regulations of the particular state with regard to their particular license. For the most part, this bond guarantees proper accounting for funds received, ensuring that monies collected by agencies will be properly dispersed to clients to settle the debt. Each state has different requirements which you can find below by clicking on your specific state.
How do I get a Collection Agency Bond?
Whether you are looking for a bond premium quote or you are ready to purchase your bond, the fastest and easiest way to begin the bonding process is to complete our online application. Once completed one of our underwriters will secure you the best quote and contact you directly. Do you have multiple states you are looking to get licensed in? Would you like some assistance with the application process? Contact our office and one of our staff will be glad to assist you!
How much does a Collection Agency License Surety Bond cost?
The cost of a Collection Agency Bond is directly related to the personal credit and sometimes financial strength of the business owners and the business. Accounts with good credit can expect to pay 1%-3% of the required bond amount, whereas accounts with credit issues will experience a higher rate due to the greater associated risk. Don’t let a bad credit report stop you! A1SuretyBonds has multiple options to help you get the bond you need in order to keep your business in compliance with state and local laws. Our Bad Credit Surety Bond programs have helped many businesses recover and maintain their market hold by keeping them licensed and bonded.
Find your state below and apply for your Collection Agency License Surety Bond. Let our expert staff get the bond you need at the lowest possible price! We work fast so you can stay focused on your business - Satisfaction Guaranteed!