A Guide to Collection Agency Surety Bonds
If you're looking for information on collection agency bonds, you've come to the right place. SuretyBonds.com provides quick, easy and accurate collection agency bonding services. To help walk you through the application process, our experienced experts have developed this guide.
Get a Collection Agency Bond for Just $100!
Because of their low bonding amounts, collection agency bonds are some of the cheapest bonds to purchase. If you need $10,000 or less of surety insurance coverage, your premium will only be $100, which is the lowest possible premium. If your state requires coverage in an amount greater than $10,000 for collection agencies, your premium will be slightly higher depending on your credit score and how much coverage you need. The specialists at SuretyBonds.com can find you the most competitive bonding rates available - no matter your credit score.
State Specific Costs
Collection agency bond costs and requirements vary greatly as the bond amounts and regulations for each license are established on a state level. Select your state below for more information about collection agency bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
Or, choose your state from the list below:
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia
Get Bonded Quickly, Easily & Accurately
SuretyBonds.com makes the bonding process quick and easy for collection agencies. You can reach us at 1 (800) 308-4358 between 7 a.m. and 7 p.m. CST Monday through Friday. You can also fill out an online contact form 24/7, and an experienced surety specialist will contact you ASAP. Once you’ve completed your application, your surety specialist will shop your collection agency bond around with our premier underwriters to ensure that you get the lowest rate available. You’ll get a price quote within 1 business day.
At SuretyBonds.com, we know you don’t have time to waste. Your surety specialist will issue your bond once your payment has been processed. You’ll receive a copy of the bond via email once it’s been legally executed. If you need the original form tomorrow, simply choose our overnight shipping option.
Possibly No Credit Check Required for Your Collection Agency Bond!
If you need coverage for $10,000 or less, SuretyBonds.com can approve you instantly without reviewing your credit. Collection agency bonds issued for more than $10,000 worth of coverage do require a credit check, but 85% of states require these bonds for $10,000 or less.
Surety Bonds are Valuable to Your Business
Most states require collection agencies to get bonded before they can receive their business licenses. These bonds work as do other surety types: by ensuring that professionals do their jobs according to industry regulations. Collection agencies are expected to uphold the terms of their bonds, which vary depending on the legal language each state uses for its form. Generally speaking, these bonds require collection agencies to appropriately handle the money they receive when pursuing outstanding debts. They also require that these funds be routed to the company with the debt outstanding (less any agreed-upon collection fees, which can total as much as 30%).
Collection Agency Bonding Regulates Your Industry
Each issued surety bond functions as a legally binding contract that involves three parties.
- The principal is the collection agent or agency that purchases the bond.
- The obligee is the government agency that requires the bond.
- The surety is the insurance company that issues the bond.
If a collection agency does misappropriate funds, the obligee can seek reimbursement by filing a claim on the agency’s bond. If the claim is determined to be valid, the surety must pay reparation up the bond's full amount. The surety will then require reimbursement from the collection agency.