Collection Agency Bond

A collection agency bond is a finance license bond that guarantees collection agency agents will follow the regulations deemed appropriate by their state. A collection agency cannot operate legally or obtain a license without a collection agency bond. Because collection agencies operate a business that collects debts, they have a negative connotation in the eyes of the public. These companies handle sensitive details that include private information such as financial and personal details. For these reasons, collection agency bonds are highly recommended.

For collection agency bonds, the cost is determined by calculating portions of the total bond amount. These bonds are not considered low risk bonds, but are not as high risk as most other bonds. Each state has different requirements for collection agency bonds, so interested agencies will need to inquire with their own state’s agencies in order to find out what needs to be purchased for them to obtain a license and operate legally.

Collection agency bonds are put in place to mainly protect the public by ensuring that the collection agency is operating a legitimate business. It does not protect the collection agency like some other bonds. In order for the collection agency to guarantee their own protection, insurance from a property and casualty agent will be needed.

Collection agencies can also get bonded for all 50 states if they purchase a bulk underwriting programs that raise overall credit limits so bonds can be obtained in other areas.


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.