Collection agency bond cost
The Connecticut Banking Commissioner requires collection agencies to post $25,000 surety bonds to be licensed to operate within the state. These bonds are subject to underwriting, so the amount you’ll pay for your bond depends on a review or your personal credit report.
Applicants with strong financial credentials could qualify to pay a rate as low as $150! Don’t let poor credit stop you from getting the bond you need. Surety Bonds approves 99% of applicants for their surety bonds regardless of financial credentials.
Why this bond
Connecticut consumer collection agency bonds ensure that the principal (collection agency) truly accounts for all funds entrusted to it and collected and received by it during business conducted as a licensed collection agency.
If the principal fails to conduct business ethically and lawfully, the bond protects any person who is damaged by the wrongful conversion of any creditor, consumer debtor or property tax debtor funds held by the principal up to the full amount of the bond ($25,000). The collection agency must reimburse the surety for all damages paid out.
Collection agency bond details
Collection agency bonds in Connecticut are continuous until canceled. The surety can cancel the bond at any time by giving written notice of cancellation to the Commissioner of Banking via certified mail at least 30 days prior to the date of cancellation.
Become a Collection agency
To become a licensed collection agency in Connecticut, applicants must do the following:
- Post a separate application, surety bond and license fee for each place of business
- Submit a Branch Office Application for each additional place of business
- Report any change of application information within 10 days
Licenses expire at the close of business on September 30 of every odd year unless renewed. Take the first step toward becoming a licensed collection agency by purchasing the surety bond you need!
Apply for your surety bond
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