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How much does a North Dakota debt collection agency bond cost?
The North Dakota Department of Financial Institutions requires collection agencies to post $50,000 surety bonds. The cost of North Dakota collection agency bonds are subject to review by an underwriter and can be issued for as little as $300.
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed, or bound by the provision of rate quotes. Bondability, final bond premium rate quotes, and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.
Why do I need a North Dakota collection agency bond?
North Dakota collection agency surety bonds ensure that principals (collection agencies) fully comply with all provisions of Chapter 13-05 of the North Dakota Century Code. If the collection agency fails to comply with these terms and the state or an individual financially suffers as a result, the surety will cover claims up to the full bond amount. The principal is then responsible for reimbursing the surety.
How to license a North Dakota collection agency
Collection agency applications must be under oath, in writing and prescribed by the Commissioner of Financial Institutions. Applications must include the addresses and names of the owners, officers, trustees, members, partners, and directors of the agency. All required fees and a surety bond must accompany each application.
Steps to obtaining a North Dakota collection agency license include the following submissions:
- An MU1 form through NMLS
- Financial/banking statements
- Credit check
- Criminal background check
- A documented set of fingerprints
- Surety bond
- Agency’s business plan
- Certificate of good standing from the state
- Management chart
- Estimated maintained minimum net worth
Examples of what these uploaded documents should look like can be found here.
Licensing fees include:
- $400 registration
- $400 application
- $15 credit report (per control person)
- $36.25 criminal background check (per person)
For more licensing information, visit the “Additional Resources” section of this page.
Don’t delay the licensing process. Purchase your required surety bond now!
Considerations for North Dakota collection agency bonds
North Dakota debt collection agency bonds are continuing obligations of the surety. The surety can cancel the bond at any time by giving written notice to the North Dakota Department of Financial Institutions in Bismarck, North Dakota, as well as the principal 30 days prior to the effective cancellation date.
The renewal period for a North Dakota debt collection agency bond starts on November 1; all agencies are required to have renewed their bond by December 31.
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.