New York Collection Agency Bond Overview
If you collect debt in New York City or the City of Buffalo, you’ll need to file a surety bond. Read on to learn all about the bonding process.
- Purpose: To ensure debt collectors uphold state regulations and operate ethically
- Who Needs It: Debt collection agencies in New York City and Buffalo
- Required Amount: $5,000
- Premium Rates: $100 in Buffalo; $175 in New York City
What Are New York Collection Agency Bonds?
New York collection agency bonds protect municipal governments and the public from harmful debt collection practices.
New York City and the City of Buffalo require a $5,000 surety bond for debt collection agencies that operate within city limits.
How Much Do New York Collection Agency Bonds Cost?
The Buffalo collection agency bond costs $100, and the New York City collection agency bond costs $175. No credit check is required for approval!
You can also save 25% on the City of Buffalo bond if you select a multi-year term. Select your city below to buy your bond in minutes.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Do Debt Collection Agency Bonds Work in New York?
A New York collection agency bond forms a legal contract between three parties: the principal, obligee and surety.
| Bond Party | Description |
|---|---|
| Principal | The collection agency owner(s) filing the bond |
| Obligee | The New York government entity requiring the bond |
| Surety | The issuing surety provider |
This bond is your financial guarantee that you’ll follow city and state laws.
What Is the Debt Collection Law in New York?
All debt collectors operating in New York must comply with the Consumer Credit Fairness Act. The following practices are prohibited:
- Harassing debtors
- Threatening violence
- Misrepresenting the amount or legal status of a debt
- Disclosing information about a debt without permission
- Charging unauthorized fees
Note that in New York, expired debt has no grace period or “revival” window. The three-year statute of limitations is a firm deadline, even if the debtor makes a partial payment or acknowledges the debt in writing. Suing on expired debt is illegal.
If you commit any of these acts, harmed parties can file claims against your bond. The surety will pay valid claims up to the full $5,000 bond amount. However, you must ultimately refund the surety.
How to Get a New York Collection Agency Bond
With SuretyBonds.com, you can get your New York collection agency bond online 24/7. Simply select your city and fill out the form.
Once you pay the premium, we’ll email you the official bond form within minutes. Be sure to file it with the obligee as instructed.
How Do I Renew My New York Debt Collection Agency Bond?
New York City collection agency bonds expire biennially in odd-numbered years. Buffalo collection agency bonds expire annually.
We’ll send you reminders by email and text starting 90 days before the expiration date. Simply pay the attached invoice to extend your bond for another term.
How Do I Update My Collection Agency Bond Form?
If you need to make minor changes to your bond form, such as name or address, contact your surety company. Larger updates may require a new bond form.
If you purchase your bond from us, email the needed change to [email protected].
Can I Get Bonded With Bad Credit?
Yes, these bonds don’t require a credit check! Anyone can purchase them at the same flat rate, regardless of credit score.
