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How much does a collection agency bond cost in Alaska?
The Alaska Department of Commerce, Community and Economic Development requires collection agencies to post $5,000 surety bonds. Alaska collection agency bonds are issued instantly and cost just $100.
Why do I need a collection agency bond in Alaska?
If you or your business entity are pursuing a collection agency license in Alaska, you are required by the Alaska Department of Commerce, Community and Economic Development to post a $5,000 surety bond as part of the process of becoming a licensed collection agency.
Collection agency bonds in Alaska exist to ensure that principals (collection agencies) report and pay the net proceeds and collections collected during that month to the clients they’re owed to within 30 days of the close of that month. Specifically, the bond ensures that principals (collection agencies) comply with the provisions of AS 08.24 while on the job. If the principal fails to comply with these terms, the bond protects harmed parties from financial loss up to the full penal sum of the bond.
How to register as a licensed collection agency in Alaska
Posting a $5,000 Alaska collection agency bond is just the first step toward obtaining your license. You must additionally:
- Complete and sign a Collection Agency License Application.
Indicate the type of business structure you operate within (sole proprietorship, partnership, corporation, or LLC).
Note the operator, branches, and employees running your collection agency. You will also need to designate the trust account associated with Alaska-based customers' funds.
The application must be notarized.
- Pay the application and initial license fees ($50 each for Alaska residents, $100 each for non-residents).
These may be paid by credit card.
- Submit all materials to the State of Alaska Department of Commerce, Community, and Economic Development Division of Corporations, Business, and Professional Licensing.
Mailing address: Collection Agency Program, P.O. Box 110806, Juneau, AK 99811-0806
Phone: (907) 465-2550
Email: [email protected]
Note: The surety bond (Form #08-4106a) must be issued by an insurer or another surety company, with the bonding company's power of attorney. The bond must be signed by both the principal and the surety to be valid.
Considerations for Alaska collection agency bonds
Alaska collection agency surety bonds are continuous until canceled. The surety can cancel the bond at any time by providing written notice of cancellation to both the principal and the Department of Commerce, Community and Economic Development at least 60 days prior to the effective date of cancellation.
Licenses are issued for a two-year period. All collection agency operator licenses expire June 30 at the end of every even-numbered year. Licenses issued within 90 days of this expiration date are issued to the next biennial expiration date.
Collection Agency Bonds Nationwide
Many collection agencies operate in multiple states, meaning they may be required to have multiple surety bonds. Get more information about other states’ collection agency bond requirements by selecting a state on the map below.