The Florida Department of Financial Regulation has required the obtainment of the Collection Agency Surety Bond. This bond is needed to obtain a license from the department. When filing an application, the required bond amount is determined by the gross annual income. The required minimum Bond amount is $50,000.
The Bond will be used to pay for any debt taken for collection that has been improperly used or taken by the agency. This is one of the best ways to show that a collection agency is honest and trustworthy. Businesses and individuals will know that sensitive information and fia will be handled properly. This will attract more customers and keep existing customers. This bond provides clients a peace of mind knowing that the collection agency has been backed by a third party surety company.
As stated by the department, “Every credit grantor damaged as a result of unlawful or fraudulent commercial collection activities of the failure of principal, or any salesperson, agency or representative thereof, to comply with the provisions of Chapter 559, Part V, and the duly promulgated rules that may be issued now or hereafter of the State of Florida, Office of Financial Regulation, or it successors, and other lawful orders of the State of Florida, Office of Financial Regulation, or its successors, and any amendments to them, may bring an action in a proper court on this bond for the amounts of damages sustained as a result of unlawful or fraudulent commercial collection practices or for the failure of principal, or any employee, agent or representative thereof, to comply with the provisions of Chapter 559, Part V, and duly promulgated rules that may be issued now or hereafter of the State of Florida, Office of Financial Regulation, or its successors, and other lawful orders of the State of Florida, Office of Financial Regulation, or its successors, and any amendments to them. The aggregate liability of Surety under this Bond shall not exceed in any and all cases the sum of $50,000.”
This Bond will protect your clients from malpractice or detriment done by your company. These wrongdoings can be any person damaged by any misrepresentation or fraud of your services. The bond helps guarantee that the collection agency will follow all regulations, rules, and laws. This Bond will protect the clients by guaranteeing faithful and honest performance. The Bond provides surety in regaining losses in fees, fines, and expenses to clients. If there are any poor financial decisions, damages, or violating of any laws or regulations, this bond will be used in favor of the clients.
The surety company will payout if you are found at fault for a claim on your bond. Qualification for this Bond will require that a credit check will be performed. The rate will depend on the credit worthiness of the applicant and will carry a rate from 1% to 15% of the Bond amount, which is $500 – $7,500, based on a $50,000 Bond amount requirement.
Call us at (855) 952-6633 to speak with a Surety Bond Expert
What happens after I apply online for my Surety Bond?
Step #1: A Surety Bond underwriter will immediately review your application, if it has been fully completed.
Step #2: A friendly Surety Bond expert will reach out to you to explain your quote or request additional information.
Step #3: Once you accept your quote and pay any premium due, your Surety Bond will be issued and delivered immediately.