North Carolina collection agency surety bond updated

North Carolina Collection Agency Surety Bond

A new form will be required when one purchases a North Carolina collection agency surety bond for the 2012-2013 licensing renewal cycle that begins July 1. The amount of surety bond protection required of North Carolina collection agencies now ranges from $10,000 to $170,000 depending on the type of enterprise.

Domestic collection agency bond requirement

The initial bond amount for a collection agency permit as a domestic entity (incorporated within North Carolina) is $10,000. Effective with the July 1 annual renewal cycle, bond amounts will range from a minimum of $10,000 to a maximum of $75,000.

Foreign collection agency bond requirement

The initial bond amount for a collection agency permit as a foreign entity (incorporated outside of North Carolina) is $20,000. Effective with the July 1 annual renewal cycle, bond amounts will range from a minimum of $20,000 to a maximum of $85,000. By issuing the bond, the surety also agrees to be liable to the Commissioner of Insurance for the department’s expenses incurred in visiting and examining the principal in connection with a federal bankruptcy or state receivership proceeding in which the principal is the subject.

Alien collection agency bond requirement

The initial bond amount for a collection agency permit as a alien entity (non-U.S. corporation/international) is $40,000. Effective with the July 1 annual renewal cycle, bond amounts will range from a minimum of $40,000 to a maximum of $170,000. The surety also agrees to be liable to the Commissioner of Insurance for the department’s expenses incurred in visiting and examining the principal in connection with a federal bankruptcy or state receivership proceeding in which the principal is the subject.

Download the North Carolina Collection Agency Financial Responsibility Surety Bond.

Collection agencies will mail the original copy of their North Carolina surety bond to:

North Carolina Department of Insurance
Agent Services Division
1204 Mail Service Center
Raleigh NC 27699