Overview of Hawaii Collection Agency Bond Requirements
When registering your collection agency in the state of Hawaii, you need to post a collection agency surety bond in the amount of $25,000 for your first office. You will need to submit an additional $15,000 bond for every additional office of your agency.
This bond guarantees that in exercising your duties and obligations as a collector, you will comply with provisions of Chapter 443B of the HRS. The bond is further intended to guarantee that you will fulfill your obligations to your clients, and make available any collections you have made on their behalf within a certain amount of time.
If you do not comply with the conditions of the bond agreement and cause losses to your clients or violate legal requirements in any other way, a claim may be filed against your bond. When a claim is filed, the surety that backs your bond will investigate the situation and, if needed, extend compensation to claimants to cover for their losses. Compensation can be as high as the full penal sum of the bond.
Want to learn more about surety bonds? See our ‘What is a surety bond’ guide for extensive information about how surety bonds work, and why you need to get bonded!
See the sections below to find out more about the Hawaii collection agency bond, how much it will cost to get bonded, and how to get yours. If you’d rather speak to one of our bond professionals, call us at 866.450.3412!
The cost of getting a bond is equal to a percentage of the bond’s total amount. Hawaii collection agency bonds are in the amount of $25,000 for the applicant’s first office, and an additional $15,000 for every branch office.
The surety company will offer you a rate at which you can get bonded, based on several financial factors. Your personal credit score is the most important factor that determines your bond cost. Sureties may sometimes also take into account your financial statements, your liquidity, assets, and even your industry experience to get a fuller picture. Typically, the higher your credit score is, the lower your bond cost will be.
Applicants who have a score of 700 FICO or more can expect to get the lowest possible rates on their bonds. Such applicants will typically be offered a rate on their bond in the range of .75% to 1.5% of the total bond amount.
Want to get a cost estimate? Try our bond calculator or see the table below! For an exact quote on your bond, see the section on getting bonded.
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|Hawaii collection agency bond||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
Bad Credit Bond Program
Even if your credit score is not perfect, you can still get bonded with us!
We’ve created our Bad Credit Program to serve those applicants that currently have a lower credit score. Because sureties perceive applicants with lower scores as potentially posing a greater risk, rates under this program are higher. Yet, if you improve your credit score, you can get a better rate on your bond as soon as your current bond expires.
Find out more about getting a bond with a low score by visiting the program page!
Claims Against Your Bond
Under Chapter 443B of the HRS the Hawaii collection agency bond is conditioned in two ways.
In particular, the bond requires licensed collectors to faithfully, promptly, and truly make available any collections they have made on behalf of their clients within 30 days after the month in which they have made such collections. More generally, the bond requires collectors to comply with all provisions of the chapter, as well as any further rules or provisions that concern collection agencies.
A claim can be brought against a collector’s bond by anyone who claims they have suffered losses as a result of a collector’s violation of any of the above conditions. In such an instance, the surety that backs the bond, will conduct an investigation into the claim to assess its veracity.
If the surety establishes that the claim is legitimate, it will extend compensation to claimants to cover for their losses. Such compensation can be as high as the full bond amount. Once a claim is resolved by the surety, the bonded collection agency must reimburse the surety in full.
Apply Here to Get Bonded!
Complete our bond form to get started with your application or to simply request a free quote. We will contact you shortly with your quote, along with more information about the bonding process. Once your application is finalized, it will take up to two working days for your bond to be issued. We will then forward it to you by mail and email.
Want to know more about these bonds and the bonding requirements? Call us at 866.450.3412 anytime!