What is a Collection Agency Bond?
Collection agencies are required to have a bond, in certain states, before they are issued a license to collect funds from debtors in that state. These are also known as debt collector bonds.
How do I get a Collection Agency Bond?
To get a Collection Agency Bond (also known as a payday loan bond, or payday lender bond), just click on the Apply Online image below. Choose your state and then the type of bond you need. Then email it to [email protected]
A Guide to Collection Agency Surety Bonds
A Collection Agency involves directly or indirectly in business of collecting for, or soliciting from another, a customer claim; or accumulating a customer claim the person possesses, if the case remained in default when the individual acquired it. This law was instituted because regulators wanted to shield consumers from unscrupulous financial obligation collection methods as well as avoid wrongly reported details from showing up on credit report bureau reports. Under these regulations, an alleged borrower can pursue financial civil solutions against a 3rd party financial obligation enthusiast's guaranty bond.
Lender Services Bond
A surety bond valued at $10,000 is required for all financial debt collection agencies operating in certain states, such as Texas. Yes. All third party financial obligation collection agencies need to keep an energetic surety bond with a guaranty company authorized to do organization in the State of Texas. If the firm fails to follow Texas Law, victims seeking monetary problems for financial obligation collection violations could pursue the Guaranty Bond firm in a state law court.
How Much Does a Collection Agency Bond Cost?
We can get you a bond for as little as $100. Just click on the application above, choose your state and collection agency bond and we'll get you a quote FAST!
Consumer Installment Loan Bond (Consumer Loan Bond)
This regulation was set up due to the fact that regulators intended to secure customers from unethical financial obligation collection methods as well as protect against improperly reported information from showing up on debt bureau reports. Under this legislation, a supposed borrower who is a homeowner of Texas has the right to go after monetary civil remedies versus a third party financial debt enthusiast's guaranty bond.
Debt Settlement Bond (Sales Finance Bond)
Most financial obligation collection agencies operate outside of the State of Texas, where the the state's attorney general has no territory to go after criminal action. Seeking civil actions for Texas residents would be a difficult and difficult process, as it would have to be carried out in the home state of the financial obligation collection agency, through that certain state's court system.
Collection Agency Sample Bond
Frequently Asked Questions (FAQs)
Question – How do I get a Collection Agency Bond from Swiftbonds? What's the process? Answer – For a collection agency bond, we take some information about your company and the states that you need the bond for. In some cases, we can issue the bond super fast. In other cases, we actually do underwriting as the goal is to get you the cheapest bond possible across multiple states. We recently worked with a client that operated in all fifty states and was able to get a much better rate for them and saved them a substantial amount of money.
Question – Does Swiftbonds write NMLS bonds? Answer – Of course! We definitely have access to the NMLS system and can get the bond posted there for you.
Question – I Previously got My Collection Agency Bonds by Someone Else, Why should I switch to Swiftbonds for this now? Answer – Swiftbonds understands how the consumer loan industry works (one of our founders was previously the general counsel for a large finance company) and we understand how to work with you to get the best rate for collection agency bonds. We know that the consumer installment bond market is dynamic and work within that to get the best bond rates out there. Finally, you don't get an automated system, but instead someone that specializes in this marketplace and RETURNS YOUR CALLS and EMAILS promptly.
Question – What is required for Underwriting? Answer – Most surety bond companies request the following: the last three (3) years of corporate financial statements (Profit and Loss Statements and Balance Sheets), year-to-date financials, ownership structure and personal financial statement on the owners.