Overview of Wisconsin Collection Agency Bond Requirements
To get a collection agency license from the Division of Banking at Department of Financial Institutions in Wisconsin, you will need to submit a collection agency bond along with your license. The amount of your bond must be either $25,000 if all of the agency’s records are maintained within the state or $35,000 if any of its records are maintained outside of the state.
The bond guarantees your compliance as a licensed debt collector with the Wisconsin Statutes. In particular, the bond requires that collectors comply with any agreements they have with their clients and customers. It also requires them to report and pay any collections they make on behalf of their customers as well as the reimburse the latter for any collections they have not made but have collected a fee for.
If you violate the bond’s conditions and thereby cause damage or losses to any person, they may have a cause to file a claim against your bond. If their claim is legitimate, they will be eligible to be compensated by the surety. Such compensation can be as high as the full amount of the bond.
Read on to find out how much it costs to get bonded, how bond claims work, and how to apply for your bond or request a free quote.
You can also have a look at our ‘What is a surety bond’ guide if you want to know more about bonds and their role for businesses.
If you have any questions about getting bonded, go ahead and call us at 866.450.3412 anytime!
Cost of Your Collection Agency Bond
To get bonded, you must pay a surety bond premium to the surety that issues the bond. This bond premium is determined by the surety when it reviews your credit score, your financial statements, as well as your resume.
Your credit score has the strongest impact on your bond cost but other factors also make a difference. The higher your score is, the lower you can expect your bond premium to be. For example, applicants with a FICO score of 700 or more are considered to have perfect credit, and are offered the lowest rates on their bonds. For this bond, rates for applicants with such credit will be in the range of .75% and 1.5% of the total amount of their bond.
Want to know how much your premium will be? Get a quick estimate through our bond calculator or from the table below. For an exact and entirely free quote, complete the bond form, and we’ll contact you shortly!
Surety Bond Cost Calculator
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|Wisconsin Collection Agency Bond||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|For applicants who maintain all records within the state||$25,000||$187.5-$375||$250-$625||$625-$1,250||$1,250-$1,875|
|For applicants who do not maintain all records within the state||$35,000||$262.5-$525||$350-$875||$875-$1,750||$1,750-$2,625|
Bad Credit Bond Program
Even though credit score is the most important factor when applying for a bond, you can also get bonded with a lower score!
We’ve created our Bad Credit Program to make sure we can help individuals who currently have a low credit score get bonded. Thanks to our professional and highly reliable surety partners, we have access to a number of markets for applicants with low scores.
Rates under this program are somewhat higher. Yet, rates are adjusted every time you apply for a bond. By improving your credit score, and overall financial standing, you will be eligible to receive increasingly better rates every time.
To learn more about the program or to request a free quote, follow the link to the program page!
Surety Bond Claims
The Wisconsin collection agency bond form states that the bond is put in place to guarantee collectors’ compliance with Chapter 218.04 of the Wisconsin Statutes and any rules and regulations issued pursuant to that chapter.
The form also states that debt collectors in Wisconsin are required to pay any collections they have made for their clients and to which the latter are entitled. It further requires collectors to reimburse their clients fees they have received in advance for services they have not performed. Finally, the bond also serves as a guarantee that collection agencies will pay liquidation and examination costs to the Department, as defined by the Chapter.
All of the above constitute the conditions of the bond agreement. If a collection agency violates any of these conditions, a claim can be made against their bond to secure compensation for any losses or damages that occur due to such a violation.
When a claim is filed against a bond, the surety will typically compensate claimants in an amount that adequately covers for their losses. Compensation can be as high as the full amount of the bond. Once a claim is covered by the surety, the bonded collector must repay the surety in full. This is a standard condition of all bond agreements.
Apply for Your WI Collection Agency Bond Today!
Want to know how much your bond will cost? Complete our bond application form and we will provide you with a free quote, with no additional obligations attached. We will also provide you with additional information about finalizing the bond application process.
Once your application is processed, it may take up to two days for your bond to be issued. As soon as your bond is issued, we’ll mail it to you by standard mail and email.
If you want to know more about getting bonded in Wisconsin, call us at 866.450.3412!