Telemarketing Bonds
Most states require telemarketers and telephone solicitors to maintain an active telemarketing bond, which is a specific type of license and permit bond. As such, telemarketing companies usually have to purchase the bond before applying for or renewing a business license.
Protection
Telemarketing bonds provide a financial guarantee that telemarketing companies will abide by industry regulations. The telemarketing bond provides protection to consumers in two standard ways.
- The bond protects consumers from unruly telemarketing companies that choose to ignore laws.
- Because telemarketing agencies face new, lengthy and confusing regulations, telemarketing bonds also protect consumers when a company breaks a rule due to an oversight.
Getting the bond
Applying for a telemarketing bond takes just a few minutes, and companies can have the original bond in their possession in just a couple of business days. The ambiguity and large fines associated with new stricter regulations make it riskier for sureties to financially back a telemarketing company's work. Because we work with so many underwriting markets, our surety specialists can issue almost any telemarketer bond, no matter how risky the business.
Purchasing and costs
As with other surety bonds, the rate for each individual telemarketing bond is calculated as a percentage of the bond amount and is then adjusted based on the applicant's personal and business financial records. Most states require telemarketing bond amounts to be between $25,000 and $50,000. A few require the bond amount to be just $10,000, but Arizona and California mandate telemarketing bonds to be $100,000. The most frequently issued telemarketing bonds go to Florida where the needed bond amount is $50,000.
After a telemarketing company applies for the bond, the surety provider will evaluate the owner's credit scores and other financial reports to determine an appropriate bond rate. A bond's cost and an applicant's ability to be approved for said bond are also affected by what the telemarketing company sells. For instance, precedents demonstrate that a telemarketer who sells cable television in Oklahoma is considered less risky than one who sells timeshares in Florida.
To help lighten the load, SuretyBonds.com can offer premium financing to those who might have to pay extra for their telemarketing bond. We can also get 99% of applicants approved regardless of their credit or financial situation.
