Overview of Alaska Collection Agency Bond Requirements
You will need a collection agency bond if you wish to start and operate a collection agency in the state of Alaska. The amount of the bond you require is $5,000.
Its purpose is to guarantee that licensed collectors will comply with the provisions of the Alaska Statutes, Title 8. Business and Professions. Chapter 24. Collection Agencies. The bond also guarantees that collectors will report and transfer any collections they have made on behalf of their clients in due time.
If a collector violates these conditions, a claim can be made by their customers against their bond to request compensation for any losses or damages caused as a result. The surety then investigates the issue and extends compensation to claimants up to the full penal sum of the bond.
If this is your first time getting a bond, you can learn more about how bonds work and why you need one from our detailed ‘What is a surety bond’ guide!
Read on for more information regarding the cost of your Alaska collection agency bond, how bond claims work, and how to apply for your bond.
Call us at (866)-450-3412 anytime to speak to one of our experts about getting bonded.
Alaska Collection Agency Bond Cost
The cost of your bond is a percentage of the full bond amount. Collection agency bonds in Alaska are in the amount of $5,000.
The exact percentage, or rate, you will need to pay is determined by the surety when you apply for a bond. The surety examines your personal credit score and may sometimes also refer to your financial statements and other similar information.
Applicants with high credit scores, such as 700 FICO or above, can typically expect to get bonded at the lowest possible rates. Such applicants can expect to get their bond for as little as $100!
For a quick estimate of your bond’s cost, try our bond calculator or see the table below for a range based on credit score. To request a free and precise quote, see below!
Surety Bond Cost Calculator
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|Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Alaska Collection Agency Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
Bad Credit Bond Program
A bad credit score is no obstacle to getting bonded!
Thanks to our Bad Credit Program you can get bonded as simply and quickly as all our applicants. To get a bond under this program, you will need to pay a higher rate. But even if you get a bond under this program this time around, you can get increasingly better rates over time by improving your credit score.
See the program page to learn more about getting bonded with a low credit score, and to request a quote!
Claims Against Your Bond
Alaska collection agencies require a bond to serve as a guarantee that they will comply with Chapter 24 of the Alaska Statutes. The main condition of the bond required is that collection agencies in the state shall “within 30 days after the close of each calendar or fiscal month, report and pay to the licensee's customers the net proceeds due and payable of all collections made during the calendar or fiscal month that exceed $20.”
If a collector violates this condition by withholding proceeds to their customers and causing losses or damages to them as a result, a claim can be filed against the bond. When a claim is filed, the surety that backs the bond investigates the issue to determine the circumstances of the claim and the amount of compensation it may have to extends to claimants.
Compensation paid by the surety can be as high as the full amount of the bond. In return, once the surety covers a claim, the bonded collector needs to repay the surety in full, as part of the bond agreement.
Because of this condition, it is always best for collectors to fulfill the obligations they have towards their customers so as not to give rise to a claim, and be forced to carry its financial burden.
Get Your Bond Today!
Want to get bonded or request a free quote? Complete our bond application form and we will provide you with a quote shortly. If you want to get bonded, we will also provide you with additional information about completing your application.
It will take up to two working days for your bond to be issued. After that we will mail it to you and provide you with a digital copy as well.
Want to know more about the bonding requirements for collectors in Alaska? Call us at (866)-450-3412 to speak to one of our professionals and consult with them.