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What is Texas Third Party Debt Collector Bond ($10,000)?
Debt collectors in Texas are required to have a surety bond of $10,000 for the duration of their agreement. The security ensures that they will fulfill all responsibilities and obligations under Chapter 392, Finance Code.
Texas Third Party Debt Collector Bond is required by the State of Texas.
This bond protects consumers from unfair and deceptive practices, false representation, and fraud committed by those collecting debts. It also ensures that all parties are treated fairly in accordance with the law.
If you’re looking to start your own business as a debt collector or if you already have one but need to renew your bond, we can help! We offer competitive rates and fast turnaround times so that you can get back to work quickly.
Why do I need a Collection Agency Bond?
Third party debt collectors are required to post $10,000 surety bonds. This is because the Texas Secretary of State's Registrations Unit needs you pledge that they will conduct business in accordance with provisions and protect any person who is affected by violations from financial loss up to the full amount of the bond. Here's a Montgomery Overweight or Oversize Vehicle Bond.
Details of Texas Debt Collection Bonds
Third party debt collector bonds in Texas remain effective continuously unless canceled. The principal (the collection agency) or the surety may cancel this bond by providing written notice to the Secretary of State at least 60 days prior to the effective date of cancellation, and must provide notification for an early termination request as well. Read about Odessa Secondhand Goods Dealers Bond.
How to get a Debt Collection Agency License in Texas?
To become a debt collection agency in Texas, you need to obtain your surety bond from SwiftBonds. This process is quick and easy: simply go online with them or call them up on the phone for assistance!
What is the purpose of a Third Party Debt Collector Bond?
Third-party debt collectors are people who indirectly or directly engage in collections, including those who sell forms that have been represented to be a collection system. Find a San Antonio Sidewalk, Curbs, and Gutters License Bond.
A bond is currently required in order to engage in debt collection. The Debt Collector Bond states that the holder will faithfully discharge all obligations, duties and responsibilities under the Texas Finance Code.
Surety companies must write the Third Party Debt Collector Bond for and in favor of the public to ensure their protection from financial harm. This bond ensures that not only are collectors' actions limited, but also people who find themselves harmed can seek compensation on this third party debt collector's behalf. Get a South Houston Peddlers & Solicitors Bond.