Overview of Nebraska Collection Agency Bond Requirements
To get a collection agency license from the Michigan Secretary of State, you will need to submit a collection agency bond as part of the application process. The amount of this bond varies between $5,000, $10,000 and $15,000 depending on the number of solicitors your agency has.
The bond requirement is put in place to guarantee that licensed agencies comply with Chapter 45, 601-623, of the NRS, and in particular the requirement to report and pay within a certain amount of time any collections they have made on behalf of their clients and customers.
Violations of these requirement can lead to claims against collectors’ bonds. Claims are made when one of the parties protected by the bond suffers losses as a result of a collector’s actions. When a claim is made, the surety will investigate it and extend compensation to claimants in an appropriate amount, which may be as high as the full amount covered by the bond. This is also known as the penal sum of the bond.
Is this the first time you are applying for a bond? See our ‘What is a surety bond’ guide for a detailed overview!
Do you have any additional questions? Call us at 866.450.3412 to speak to our professionals!
The Cost of Your Nebraska Collection Agency Bond
Surety bond cost is equal to a small part of the whole bond amount. It is determined by the surety company when you apply for your bond. The surety reviews applicants’ credit score, their business and financial statements, along with other information, to determine the exact rate to offer to applicants.
Those applicants who have a FICO score of 700 or more are typically offered the lowest rates on their bond which for this bond can be between .75% and 1.5% of the total bond amount.
Want to get an estimate of your bond cost? Try our bond cost calculator or see the table below! For an exact quote on your bond, see the section on getting bonded.
Surety Bond Cost Calculator
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|Nebraska 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 low, you can still obtain a surety bond!
Sureties consider credit score the most important factor in determining bond rates. For this reason, when an applicant has a low or very low score, some sureties may decline to issue a bond.
With us, through our Bad Credit Program, you can apply for a bond despite your low credit score. Though you will need to pay slightly higher rates than applicants with higher scores, you can significantly improve your bond rate over time by improving your credit score.
Read more about getting a bond with bad credit on the program page and request a quote!
Claims Against Your Bond
The Nebraska collection agency bond form states that this bond’s condition is that licensed collection agencies will faithfully perform their duties toward their clients, based on the agreements they have. The bond further requires that within 45 days of the end of a month, agencies will report and pay to their clients any collections they have made for them.
If a collection agency violates these conditions by not reporting or paying their clients on time, or by violating any other conditions of their agreement, clients can file a claim against the bond. When a client files a claim, the surety which backs the agency’s bond investigates the claim to assess its validity. It also determines the amount of losses or damage suffered by the claimant, and the amount of compensation to extend to them. If the claim requires it, a surety may extend compensation as high as the full amount of the bond.
Under the bond agreement, it is the bonded collection agency that bears the full liability of a claim. So when a surety extends compensation to a claimant, the collection agency must reimburse the surety in full. Given the possible high amount of bond claims, it is better to simply comply with the bond conditions and avoid giving rise to claims.
Request a Free Quote Here!
Want to know how much your Nebraska collection agency bond will cost? Get started here by completing our bond form and we will soon provide you with a free and exact quote. We will also provide you with additional details about finalizing your application.
It takes up to two working days for your bond to be issued, once your final application is processed. Once your bond is issued, we will mail it to you as well as provide you with a free digital copy.
If you have any further questions about this bond, call us at 866.450.3412 anytime!