Collection Agency Bond
Collection Agency Bond Information
What Is A Collection Agency Bond?State governments require all collection agencies to be bonded. Our agency offers a variety of programs designed to help all types of new and established debt collection agencies get approved and licensed quickly, and at excellent rates, in all 50 states.
- 100% Secure Online Application
- Lowest Rates
- Approval Rate Nearly 100% (even for the less than perfect credit applicants)
How can collection agency bonds regulate the industry?These collection agency surety bonds guarantee proper accounting for funds received, ensuring that money collected by a collection agency will be properly dispersed to clients. Specific information of what each collection agency surety bond will guarantee may vary depending on individual state’s rules and regulations.
How much will a Collection Agency Bond cost?Annual premium amounts are determined based on owner personal credit. Owners with stellar credit may be eligible for standard surety insurance market rates, which range from 1% to 3% of the bond amount. If the owner has a low credit score, or past due items on their credit report, annual premium for surety insurance typically ranges between 5% to 15% of the bond amount. For most states, our high risk rate for surety insurance does not exceed 7.5%.
Information on State Specific CostsMany of the 50 states require that collection agencies to get bonded. Some states do not require collection agencies to get bonded, though. The following of the 50 states have a bond requirement for collection agency:
- Alaska - $5,000 bond for collection agency
- Arizona - $10,000 - $35,000 bond for collection agency (based on gross annual income)
- Arkansas - $10,000 - $25,000 bond for collection agency (based on number of solicitors)
- Colorado - $12,000 - $20,000 bond for collection agency(based on gross annual income)
- Connecticut - $25,000 bond for collection agency
- Florida - $50,000 bond for collection agency
- Hawaii - $25,000 bond for collection agency
- Idaho - $1,500 bond for collection agency
- Illinois - $25,000 bond for collection agency
- Indiana - $5,000 bond for collection agency
- Maine - $20,000 bond for collection agency
- Maryland - $5,000 bond for collection agency
- Massachusetts - $25,000 bond for collection agency
- Michigan - $5,000 bond for collection agency
- Minnesota - $50,000 bond for collection agency
- Nebraska - $5,000 - $15,000 bond for collection agency
- Nevada - $35,000 - $60,000 bond for collection agency(based on number of solicitors)
- New Jersey - $5,000 bond for collection agency
- New Mexico - $5,000 bond for collection agency
- New York City of Buffalo - $5,000 bond for collection agency
- North Carolina - $20,000 bond for collection agency
- Oregon - $10,000 bond for collection agency
- Tennessee - $15,000 - $25,000 bond for collection agency(based on number of solicitors)
- Texas - $10,000 bond collection agency
- Utah - $10,000 bond for collection agency
- Washington - $5,000 bond collection agency
- West Virginia - $5,000 bond collection agency
- Wisconsin - $25,000 - $35,000 for collection agency (based on whether records are held entirely within state)
- Wyoming - $10,000 bond for collection agency
How do I get a Collection Agency Bond?The first step is to apply for a free quote. Applying for a free quote is simple and once you’ve been approved, your agent will provide you with the bond premium due, along with an agreement with the surety. Once you’ve paid for your surety bond, and provided a signed copy of the indemnity agreement, your Collection Agency Bonds will be mailed out to you.
Can I get approved for a Debt Collector Bond if I have bad credit?Yes. While many sureties only offer quotes to customers with stellar credit, we have a variety of collection agency bonds programs that allows us to approve over 99% of applicants through our online application. Your annual premium will depend on your individual credit profile information, but we’re able to offer very aggressive rates.
Over 125 years of combined experience
As a surety bond broker, we work for YOU not the surety company. We are licensed nationwide and appointed by 25 surety companies so that we are able to offer the best solution for all surety bond needs. We are a small organization that strives to make you feel like part of our family.
Working with trusted insurance companies
Three party agreement
Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.Learn more about surety bonds
Bad Credit – Fast Approvals – Lowest Rates Available.
- Credit below 650 and/or have blemishes on credit report.
- Average cost is 5-15% of the bond amount.
- Available for all commercial bonds.
Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.