Overview of Utah Collection Agency Bond Requirements
A collection agency bond is required in Utah if you wish to obtain such a license. The bond must be in an amount of $10,000 and must be submitted to the Division of Corporations and Commercial Code.
Its purpose is to guarantee that licensed collection agencies will comply with Title 12 of the Utah Code, and in particular when handling the funds of their clients or any other provisions required by the Division.
If an agency misuses funds or does not comply with any of the provisions of the Code, a claim can be filed against their bond to compensate persons harmed by such actions. Compensation that can be extended in the event of a claim under the bond agreement can be as high as the full penal sum of the bond.
If you’ve never gotten bonded before, you may want to read our ‘What is a surety bond’ guide for a full explanation of how bonds work!
Read on to find out how much your bond will cost, what can constitute a cause for a claim against this bond, and how you can get this type of bond.
To find out more about the bonding requirements for collection agencies in Utah or for other bond-related questions, call our bond experts at 866.450.3412!
Cost of Your Bond
The required bonding amount for Utah collection agencies is $10,000. This amount is the total maximum coverage or compensation that can be extended by the surety in case of a claim. The cost of obtaining this bond is a percentage of this amount, also known as a premium.
When you apply for a bond, you will be offered a rate by the surety that is based on the surety’s assessment of your credit score as well as, possibly, your financial statements, liquidity, assets and other information. Credit score is the primary determining factor of surety bond cost and typically the higher your score is, the lower your rate will be.
Applicants with high credit scores, above 700 FICO, can expect to get a rate as low as 1% of the full bond rate or about $100. See the table below for a breakdown of bond cost based on credit score.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Utah Collection Agency Bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
If you would like to know how much exactly your bond will cost, complete our bond application form and we will provide you with a free quote!
Bad Credit Bond Program
Even if your credit score is not perfect, you can still get bonded! Our Bad Credit Program enables you to get approved for a bond just as simply and quickly as our other clients.
Rates under this program are higher due to the increased risk perceived by sureties in issuing bonds to applicants with lower scores. Yet, by improving your credit score over time you will be able to get increasingly better rates.
To find out more about getting bonded with low credit and to get a free and precise quote on your bond, visit the program page!
Bond claims occur when the bonded party under a bond agreement, violates the conditions of the agreement thereby causing losses or damages to the bond obligees.
This bond is conditioned upon the collection agency’s compliance with Title 12 of the Utah Code as well as any other additional conditions placed on it by the Division. According to Title 12, Chapter 1, Section 2, the bond guarantees that any proceeds collected on behalf of a client will be handled in accordance with the agreement made between the client and the agency.
If an agency misuses or misplaces funds or acts in any other way, violating the Code, a claim can be filed against their bond. Claims are intended to make available compensation to claimants for any losses or damages they experience as a result of violations of the bond agreement. Such compensation can be as high as the full amount of the bond. When compensation is extended by the surety, the bonded agency is required to reimburse the surety in full!
Get Your Bond Here!
Complete and submit our bond application form to request a free quote on your bond! We will also provide you with further details on finalizing your application.
It will take about two working days for your bond to be issued. After that, we will immediately send it to you via standard mail as well as provide you with a free digital copy via email.
Do you have any additional questions? Call our bond professionals at 866.450.3412 to find out more about this bond!