North Dakota Collection Agency Bond Overview
- Purpose: To ensure compliance with state laws and protect consumers from financial harm
- Who Needs It: All debt collection agency owners in North Dakota
- Regulating Body: The North Dakota Department of Financial Institutions
- Bond Amount: $50,000
- Minimum Price: $300, credit-based
What Is a North Dakota Collection Agency Bond?
A North Dakota collection agency bond protects consumers and clients by guaranteeing that debt agencies comply with industry regulations. It provides a financial guarantee if bonded debt collectors fail to properly remit collected funds or break other rules.
Who Needs a Collection Agency Bond?
The ND Department of Financial Institutions requires all debt collection agency owners to file a $50,000 bond. This ensures compliance with state laws. It also prevents financial harm for any clients or debtors if collectors act improperly.
How Much Do Collection Agency Bonds Cost in North Dakota?
North Dakota collection agency bond premiums start at $300. You’ll pay a small percentage of the $50,000 coverage amount based on credit score and other factors.
Qualified applicants typically pay 0.6–3%. Apply for your free, personalized quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a North Dakota Collection Agency Bond Work?
This type of surety bond creates a legal and financially-binding contract between the collection agency, the DFI and the surety provider.
| Bond Party | Description |
|---|---|
| 1) Principal | The bonded collection agency owner(s) |
| 2) Obligee | The North Dakota Department of Financial Institutions |
| 3) Surety | The issuing surety provider |
As the bond principal, the collection agency owner or debt collector is responsible for upholding all state and federal debt collection laws.
If not, harmed parties can file bond claims. The surety will repay valid claims then seek repayment from the principal.
How Do I Get a Collection Agency Bond in North Dakota?
With SuretyBonds.com, you can get your collection agency bond as quickly as same-day. Follow these steps to get bonded:
- Submit a quote request form
- Get your personalized invoice
- Checkout using our secure, online portal
- Authorize the surety in NMLS
Rather than emailing you the official bond form, it will be automatically uploaded to your NMLS account. We’ll provide a follow up email with instructions on how to authorize the surety and become officially bonded.
How Fast Can I Get My Bond?
We respond to all quote requests within one business day. Most qualifying applicants get their quote within a few hours! Once you checkout, the surety will upload the bond form to NMLS.
Can I Get Bonded With Bad Credit?
You may still be able to get a debt collection agency bond without a strong personal credit score. However, low credit will impact your premium rate since these bonds are underwritten.
How Do I Renew My Collection Agency Bond?
Collection agency surety bonds expire after one year. We’ll send you email and text reminders starting 90 days before your bond expires. Just pay the linked invoice to extend your bond for your next license term.
If you don’t want to renew your license, you can simply let your bond expire or contact the surety to request a cancellation.
How to Get a Collection Agency License in North Dakota
The Department of Financial Institutions – Consumer Division Licensing manages collection agency licensing through the Nationwide Multistate Licensing System (NMLS).
To apply for a license, follow the detailed NMLS checklist to prepare all the required paperwork and materials. You’ll upload everything to your NMLS portal. Be sure to follow file naming instructions.
