Overview of Florida Collection Agency Bond Requirements
A collection agency bond is required by Florida commercial collection agencies when applying for a business license at the Florida Office of Financial Regulation. The bond’s purpose is to guarantee that such agencies comply with Chapter 559, Part V of the Florida Statutes which describes the legal responsibilities and limits of collection agencies in the state.
The bond provides protection to persons who work with collection agencies in cases in which the agency commits fraud in soliciting or collecting commercial claims owed to such persons. In such cases, a claim can be filed against the bond, and claimants may receive compensation up to the full bond amount, also known as the penal sum.
These bonds, as well as collection agency licenses are renewed yearly before December 31.
First time getting a bond? See our ‘What is a surety bond’ guide for a detailed explanation!
The sections below detail the cost of getting this bond, how bond claims occur, and how you can apply for your bond.
If you want to know more about the bonding requirements for collection agencies in the state, call us 866.450.3412!
Cost of Getting This Bond
Chapter 559.545 of Part V of the Florida statutes mandates that commercial collection agencies in the state must obtain a bond in the amount of $50,000 to serve as guarantee. The cost of obtaining the bond will vary from applicant to applicant, and is a fraction of the full bond amount.
This fraction is determined by the surety upon reviewing primarily an applicant’s personal credit score, as well as other personal indicators of financial status such as financial statements, and more. The higher an applicant’s credit score, the lower their bond cost.
Typically, applicants with high scores can expect to get a rate on their bond which is between .75%-1.5% and up to 2.5% for those with scores slightly lower. This means, that if you are offered a rate of 1% on your bond, you will be required to pay $500 to get bonded.
You can get a free quote on your bond by completing our bond application form! There are no obligations attached to requesting a bond quote.
Bad Credit Bond Program
Applicants who have lower scores or don’t even have a score can also get bonded just as easily as all other applicants.
Thanks to our Bad Credit Program such applicants can get their bond just as quickly, though at a higher rate than bonds for applicants with higher scores. This is due to a perceived higher risk in issuing bonds to applicants with lower credit. But by improving your score over time, you can get consecutively better rates every time you renew your bond.
See the program page to find out more about how to get such a bond, and to request a quote.
Claims Against Your Bond
559.545 and 559.546 of the Florida Statutes specifically state the bond’s purpose with regard to collection agencies in the state. According to the Statutes, the bond is to serve for the benefit of credit grantors who work with a bonded collection agency and sustain losses as a result of a violation by the agency of the provisions of the Statutes, while acting within the scope of their employment.
In other words, a claim can be filed against the bond of the agency if the agency’s actions result in losses to their clients due to malpractice, fraud, theft or dishonesty. In the case of a claim, the surety will compensate claimants up to the full amount of the bond and the bonded agency will be required to reimburse the surety for any compensation it extends.
Get a Your Bond Today!
Apply for your bond now by completing the surety bond application form. We will shortly provide you with a free quote on your bond and additional details on completing your application.
Your bond will be issued within two working days, and we will immediately dispatch it to you via email and standard mail.
Don’t forget, you can always call our experts at 866.450.3412 if you have any bond-related questions or are in need to assistance!