Debt collection agency bond cost
The Nebraska Secretary of State requires collection agencies to post a surety bond. Bond amounts vary depending on the number of solicitors employed by the agency.
Premiums for the $15,000 bond are subject to underwriting. This means the surety bond cost is based on a review of the applicant’s personal credit report. Applicants with strong financial credentials qualify for low rates that start at 1%.
Why this bond
Nebraska collection agency bonds protect customers and the state from fraudulent and otherwise unlawful collections agencies. By posting this bond, the principal (collection agency) agrees to abide by all rules, laws and regulations stated in the Nebraska Revised Statutes, such as reporting or paying all net proceeds and due monies to clients within 45 days of the end of the month. Prohibited acts under this bond include, but are not limited to:
- acting fraudulently or embezzling money
- acting without a legal license
- changing establishment of business without notifying the Secretary of State
- not releasing necessary financial statements to the Board as deemed necessary
If these laws or any others stated in the Statutes are broken, a claim can be made against the bond to cover damages.
Debt collection agency bond details
If the Secretary of State deems it necessary, the bond amount can be set higher than $15,000, but the bond amount cannot exceed $100,000. This bond form expires on December 31st.
Become a collection agency
You must be licensed to own or operate a collection agency in Nebraska. Licensing requirements include, but are not limited to:
- obtaining correct bond with correct amount
- paying all necessary fees
- submitting filled out application
- furnishing 3 personal reference letters of recommendation
- providing personal and business financial statements
Apply for your surety bond
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- Nebraska Collection Agency License Bond
- Nebraska Collection Agency Licensing Board Initial License Application Requirements
- Nebraska Collection Agency Board Initial Collection Agency License Application
- Nebraska Secretary of State Licensing Information Collection Agencies
- Nebraska Revised Statutes Chapter 45 Sections 601-623