Debt collection bond cost
The treasurer and receiver-general of the Commonwealth of Massachusetts requires debt collection agencies to post $25,000 surety bonds prior to conducting business.These bonds are subject to underwriting, so the price you’ll pay depends on a review of your personal credit report. Qualified applicants could pay as low as $250 for their bonds.
Why this bond
Massachusetts collection agency bonds are put in place to ensure that principals (collection agencies) account all funds collected to the person, partnership, association or corporation firm to which the funds are due. Specifically, these bonds ensure that principals comply with all requirements of sections 24 to 28 of Chapter 93 of the General Laws.
If the principal fails to comply with these terms, the bond covers any financial losses that occur as a result of the principal’s actions up to the full bond amount. The principal must reimburse the surety for all damages paid out.
Collection agency bonds in Massachusetts remain in full force and virtue as long as the principal remains in compliance with the terms of the surety bond contract.These bonds must be acknowledged by a notary public.
become a collection agency
All applications for company or branch licenses or company registrations of collection agencies in Massachusetts must be filed with the Massachusetts Division of Banks through the Nationwide Multi-State Licensing System and Registry (NMLS). Paper license/registration applications are no longer accepted. More licensing information can be accessed from the Important Links section of this page.Take the first step toward becoming licensed in Massachusetts by purchasing the collection agency bond you need quickly and easily!
Apply for your surety bond
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