Overview of Maine Collection Agency Bond Requirements
When applying for a collection agency business license in Maine, you will need to submit a $20,000 collection agency bond as part of the process.
This bond guarantees that you will comply with Title 32 of the Maine Revised Statutes, Sections 11001 to 11054, and all other provisions that apply to collectors. This includes complying with all conditions of the agreements you have with your clients as well as regularly report and transfer any collections you have made for them.
Violating either of the above conditions may result in a claim being filed against your bond by your clients. In this case, the surety that issues and backs your bond will investigate the matter to determine if it needs to extend compensation to claimants. Compensation extended by the surety can be as high as the full amount of your bond, also called its penal sum.
Want to know more about bonds? See our detailed ‘What is a surety bond’ guide for a full overview of what bonds are and how they work!
See the sections below for a breakdown of surety bond cost, more information about bond claims, and how you can get bonded. You can also call us at (866)-450-3412 anytime!
Surety Bond Cost
Your bond’s cost, also known as your bond rate, is equal to a percentage of the full amount of your bond. For first-time license applicants, the Maine collection agency bond amount is $20,000. For renewal applicants, the bond amount can range between $15,000 and $50,000 depending on their average gross collections for the previous year.
The cost you need to pay to get bonded is determined by your surety on the basis of your personal credit score as well as other factors such as your financial statements, liquidity and assets, and even your industry experience.
The higher your credit score is, the lower your rate will be. For applicants with a credit score of 700 FICO score or higher, this translates into a rate between .75% and 1.5% of their total bond amount.
Get an estimate of your bond’s cost through our bond calculator or see the table below for a range of rates based on credit score. You can also request a free quote by completing our bond form!
|Maine Collection Agency Bond||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Renewal applicants - for annual gross collections averaging over:|
|$40,000 per month||$50,000||$375-$750||$500-$1,250||$1,250-$2,500||$2,500-$3,750|
|Between $30,000 and $40,000||$45,000||$337.5-$675||$450-$1,125||$1,125-$2,250||$2,250-$3,375|
|Between $20,000 and $30,000||$35,000||$262.5-$525||$350-$875||$875-$1,750||$1,750-$2,625|
|Between $10,000 and $20,000||$25,000||$187.5-$375||$250-$625||$625-$1,250||$1,250-$1,875|
Bad Credit Bond Program
Need a bond but have a low credit score? We’ll get you bonded as easily as everybody else!
Thanks to our highly professional surety partners, we are able to offer applicants with lower scores bond options through our Bad Credit Program. Rates are higher under this program due to the increased perceived risk by sureties. Yet, by working on your credit score, you can get increasingly better rates on your bond with every renewal!
Request a quote and learn more about getting a bond with a lower score through the program page!
Claims Against Your Bond
The Maine collection agency bond agreement requires licensed collectors to comply with a number of requirements.
In general, under the agreement, collectors must comply with the Maine Fair Debt Collection Practices Act, all its provisions, and any other rules or regulations that apply to them. More specifically, collectors are also required to report and pay any collections made or property repossessed within 30 days after the close of every month to their clients.
If a collectors violates any of these requirement, and thereby causes losses or damages to their clients, the latter can file a claim against the collector’s bond. By filing a claim, claimants are requesting that the surety that backs the bond investigate the situation and compensate them for their losses. Such compensation can be as high as the full amount of a collector’s bond.
Once a surety extends compensation to a claimant, the collection agency must reimburse the surety in full. This is a standard condition of every bond agreement. Due to the possible high amounts of bond claims, the best way to avoid having to deal with the financial complications that come with a claim is to comply with all requirements of a bond agreement at all times!
Request a free quote and apply for your bond by completing our bond application form.
We will contact you within a short amount of time with your quote, along with further details on the application process. As soon as your bond is issued, which takes about two working days at most, we will send it to you via mail and email.
Call us anytime at (866)-450-3412 if you need assistance with your application or want to learn more about this bond or getting bonded in general!