Overview of Illinois Collection Agency Bond Requirements
To obtain a collection agency license in the state of Illinois you will be required to obtain, among other things, a collection agency bond. The bond must be submitted to the state Department of Financial and Professional Regulation and must be in the amount of $25,000.
Its purpose is to guarantee agency compliance with the state Collection Agency Act and all of its provisions. In particular, the bond guarantees that any funds handled by the agency on behalf of its clients will be made available to them as part of the agreement between the agency and the client.
If an agency does not comply with the conditions of the bond agreement and thereby causes verifiable financial losses to its clients, the latter can request compensation under the bond agreement. Such compensation is extended by the surety which backs the bond and can be as high as the full amount of the bond, also known as its penal sum.
For first-time bond applicants, all of this may be unclear or difficult to grasp. See our detailed ‘What is a surety bond’ guide to understand how bonds work and why they are required!
See the sections below for more information regarding the cost of getting bonded, what bond claims are, and how to get bonded.
You can call us anytime at 866.450.3412 if you have any additional questions about this bond or how to get bonded!
Cost of Your Bond
The Collection Agency Act states that a bond in the amount of $25,000 must be obtained by license applicants in the state. This sum is the total possible compensation which may be extended by the surety under a bond claim.
The cost of the bond, on the other hand, is a fraction of this amount. It is determined by the surety when you apply for a bond, based on your personal credit score and other financial factors. Applicants with high credit scores above 700 FICO are typically offered the lowest rates that can be as little as .75% on this type of bond.
See the table below for a rough breakdown of bond cost based on your credit score.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Illinois Collection Agency Bond||$25,000||$187.5-$375||$250-$625||$625-$1,250||$1,250-$1,875|
If you want to know how much exactly your bond may cost, complete our bond application form and we will provide you with a free and exact quote on your bond!
Bad Credit Bond Program
Applicants who have a low credit score may sometimes experience difficulties with getting bonded. Thanks to our Bad Credit Program getting bonded is simple and straightforward!
Applicants who apply for a bond under this program are typically required to pay higher rates than applicants with higher credit. This is due to the higher risk sureties perceive in bonding low credit applicants. But by improving your credit score, you can consistently improve your bond rate, too!
Find out more about getting bonded with bad credit by visiting the program page!
A bond claim occurs when the bonded party violates the conditions of the bond agreement thereby causing losses to the bond obligees.
The Illinois Collection Agency Act states that the surety bond required of agencies is “for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the agency to remit money collected on account and owed to the creditor.”
When this happens, a claim can be filed against the bond and compensation can be requested by claimants. Such compensation may initially be extended by the surety which backs the bond though ultimately the bonded agency must reimburse the surety in full for any payments it makes to claimants. The amount of compensation will depend on the losses experienced by claimants but may in principle be as high as the bond amount itself - $25,000.
Get Bonded Today!
To get started, complete our bond application form to request a free quote on your bond. Along with your quote, we will provide you with additional details about finalizing your application.
Once your application is complete, it will take no more than two working days for your bond to be issued and sent to you via standard mail as well as via email.
Call us at 866.450.3412 if you have any additional questions about this bond or require assistance with your bond application!