Overview of Nevada Collection Agency Bond Requirements
The collection agency bond in Nevada is required by the state Department of Business and Industry as a financial security requirement. The bond is to guarantee that the collection agency will comply with the rules set forth in the Nevada Revised Statutes (NRS) when dealing with the public.
In particular, the bond is conditioned to provide protection to customers who issue a claim of collection. If an agency does not pay a customer upon receiving such a claim or otherwise violates the duties and obligations set forth in the Statutes, a claim can be filed against their bond to request compensation for any damages or losses that result from such a violation. Such compensation may be up to the full penal sum of the bond, also known as the bond amount.
Collection agency licenses in Nevada expire on June 30 each year but renewal applications must be submitted on or before June 1. The bond expires at the same time as the license and must also be renewed yearly.
Need to know more about bonds? See our detailed ‘What is a surety bond’ guide for more information!
In the sections below you can find information about the cost of the bond, what can give rise to a claim against such a bond, and how to get bonded.
Call us at (866)-450-3412 for any bond-related questions and advice.
Cost of Getting Bonded
The cost of your bond is a fraction of the total bond amount.
According to NRS 649.105, applicants for a collection agency license in Nevada need to post a bond in the amount of $35,000 upon applying for a license. Within 3 months of getting a license, the Nevada Commissioner of Financial Institutions may alter the amount of the bond, based on the average monthly balance of the agency. The Commissioner to review the bond amount twice a year.
The amount of your bond depends on the average monthly balance of the agency. The possible amounts at which your bond can be set are:
- $35,000 - less than $100,000 average monthly balance
- $40,000 - $100,000 or more but less than $150,000 average monthly balance
- $50,000 - $150,000 or more but less than $200,000 average monthly balance
- $60,000 - $200,000 or more average monthly balance
The cost of your bond will initially be a fraction of the minimum $35,000 amount. The exact cost is based on your personal credit score, most importantly, as well as on other indicators such as your financial statements, your liquidity, and others.
The higher your credit score - the lower your rate. Typically applicants for this kind of bond who have high scores can expect to get a rate between .75% and 1.5% on their bond. Those with slightly lower scores can get a rate up to 2.5% of the total amount. So, for a rate of 1% on your bond, you will need to pay $350 to get bonded.
Want to know how much exactly your bond will cost? Get a free quote by submitting a bond application!
Bad Credit Bond Program
Even if your credit score is very low, you can still get bonded!
Bryant Surety Bonds’ Bad Credit Program is designed to accommodate all applicants who have low credit or no credit at all, and provide them with the surety bonds they need for their business.
Rates under this program are higher, due to the higher perceived risk by sureties when issuing bonds to applicants with lower credit. But by improving their credit score, such applicants can get better rates each time they renew their bond.
For a quote on a bond through this program and for more information, visit the program page!
Claims Against Your Bond
A claim against this bond may arise as a result of a violation of any of the Nevada state statutes that set out the duties, obligations and liabilities of collection agencies in this state. It can also arise, in particular, if the collection agency fails to pay the proceeds to any customers for whom it has received a claim for collection.
In such an instance, a claim can be filed against the bond to compensate for any losses that have resulted out of such a failure. When a claim is filed the bond company compensates claimants up to the full amount of the bond. In return, the bonded agency must repay the surety for the compensation it has extended.
Get Bonded Now!
Complete our bond application form to get a free quote on your bond. We will also provide you with any additional details required to complete your application.
It takes two working days to have your bond issued, after which we will immediately send it to you via email, and standard mail.
If you need more information about the bonding requirements in Nevada, you can reach our experts at (866)-450-3412 anytime!