Collection agency bond cost
The Minnesota Department of Commerce mandates that all collection agencies post a $50,000 surety bond. The exact cost of the surety bond depends on a review of the applicant’s credit score. Those with exceptional credit could pay as low as 1% of the total bond amount.We offers an exclusive bad credit bonding program through which we can approve 99% of applicants.
If you’re ready to get bonded, call at 888.610.4474 or fill out our online bond request form. One of our expert surety specialists will contact you right away to walk you through the quick and easy bonding process and provide you with a free surety bond quote.
Why this bond
A surety bond for collection agencies is required by the state of Minnesota under the Fair Debt Collection Practices Act Chapter 332. A complete list of rules and regulations can be found in the Additional Information section at the bottom of this page.
A collection agency surety bond ensures that the principal (collection agency) adheres to the regulations and standards of the state. Should a collection agency fail to adhere to these rules in such a way that causes verifiable financial losses to their clients, a claim may be made against the collection agency’s bond. The surety will cover the initial cost, but the collection agency must reimburse the surety.
Collection agency bond details
Collection agency bonds are in effect for a one-year term and must be renewed annually. The term may end sooner if there is a claim against the agency or it is cancelled by the surety. However, the surety must give 30 days’ notice to the Department of Commerce before the cancellation is can take effect.
Become a collection agency
There are three separate types of collection agencies that are all required to obtain a $50,000 surety bond:
- Corporate Collection Agency
- Individual Collection Agency
- Partnership Collection Agency
Each separate surety bond form can be found in the Additional Information section below.To become a registered collection agency in Minnesota, an applicant must take the following steps:
- Fill out an application on the Minnesota Department of Commerce website, provided below in the Additional Information section
- Pay $1,000 application fee
- Each additional branch of the collection agency requires a $500 fee
The Department of Commerce uses a system called ”Pulse Portal” for their applications. It is important to read through the step-by-step directions on their site in order to fill out the correct application.
Apply for your surety bond
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