Overview of New Mexico Collection Agency Bond Requirements
When you apply to get a collection agency license at the New Mexico Financial Institutions Division, you will need to submit a $5,000 collection agency bond along with your application.
This bond is required by Chapter 61, 18A-15, of the New Mexico Statutes Annotated (NMSA). It requires the bonded collection agency to comply with the entirety of the provisions of the Statutes that apply to the business of debt collection in the state. This includes, among other things, the requirement to pay to clients any collections made on their behalf as well as pay any money owed to the State.
When an agency violates the provisions of the NMSA, causing losses to any person or the State, a claim can be filed against their bond to request compensation. Compensation is initially extended to claimants by the surety, and can be as high as the full penal sum of the bond.
Never applied for a bond before? Our detailed ‘What is a surety bond’ guide will help you understand how bonds work, and why businesses need to get bonded!
To speak to one of our bond experts personally, give us a call at 866.450.3412!
NM Collection Agency Bond Premiums
The cost of your bond is a small fraction of the full amount of the bond. Sureties determine the cost you need to pay to get bonded based on your credit score as well as on other things such as your financial statements. With credit score being the most important factor, the higher your score, the lower the cost of your bond will be.
Applicants with a high credit score, one of 700 FICO or more, can expect to get the lowest possible rates on their bond. Such applicants may be able to obtain the New Mexico collection agency bond for as little as $100.
To get an estimate of your bond cost, see the table below or try our bond cost calculator!
Surety Bond Cost Calculator
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|Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|New Mexico Collection Agency Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
Bad Credit Bond Program
With some sureties, a bad credit score can be a hurdle to getting bonded. With us, you can get bonded easily, even if your score is low!
Our Bad Credit Program is designed to meet the surety bond needs of our clients who currently have a lower credit score. While such applicants need to pay higher rates, these rates only apply to the bond you are getting currently. If you improve your credit score by the time you are applying to renew your bond or get a new one - you can get a significantly better rate.
See the program page to find out more about getting bonded with a low score!
Surety Bond Claims
Under the New Mexico Collection Agency Regulatory Act, collection agencies in the state are required to comply with several conditions and requirements.
Collection agencies must be licensed, and they must comply with the provisions of the Act. They must honestly and faithfully apply any funds they receive and perform their obligations under the Act. Finally, the must pay any money they receive as collections to their clients, as well as any money they owe to the State under the provisions of the Act.
If a collection agency violates any of these requirements or the provisions of the Act, thereby causing losses to any person, that person is entitled to file a claim against the agency’s bond to request compensation. Compensation under a bond claim is extended by the surety. The amount of the compensation must be adequate to cover for losses and can be as high as the full amount of the bond. In return, once the surety makes compensation available to claimants, the bonded agency must repay the surety in full.
Apply for Your Bond Here!
You can request a free quote on your bond, without any additional obligations, by completing our bond form. We will provide you with your quote as well as with additional information regarding the bond application process.
Once you finalize your application, it will take up to two working days for the surety to issue your bond. We will then forward it to you via standard mail and email.
For additional information about this bond or to get help with the application process, call our bond experts at 866.450.3412!