Collection agency bond cost
Collection agencies in Hawaii must post surety bonds prior to conducting business. The required bond amount for the first office is $25,000, and the required bond amount for each additional office is $15,000.
These bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report. Qualified applicants could pay as low as $250 or $150 for their bonds, respectively.
Why this bond
By posting a Hawaii collection agency bond, principals (collection agencies) pledge to comply with Chapter 443B of the Hawaii Revised Statutes and promptly account for and pay all net proceeds due on collections within 30 days after the end of the calendar month in which the collections were obtained.
These bonds protect harmed parties from financial loss if the principal fails to comply with these terms and conduct ethical and lawful business. The principal must reimburse the surety in a timely manner for any damages paid out.
Collection agency bond details
A collection agency in Hawaii must have a surety bond in force at all times for all offices unless notice is delivered by the surety. These bonds can be canceled by the surety if the surety gives written notice of cancellation to the to the state and the collection agency at least 60 days prior to the effective cancellation or termination date.
Become a collection agency
To be legally registered as a collection agency in Hawaii, agencies must do the following:
- File and maintain a bond with the director in the sum of $25,000 for the first office and $15,000 for each additional office
- Pay appropriate fees
- Submit an application for registration
To conduct collection agency business in Hawaii, an agency must:
- Have and maintain a regular active business office in Hawaii
- Designate a principal collector to assume the responsibility for the direct management and control of the operation of the office
Apply for your surety bond
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