What is a New Jersey Collection Agency Bond?
Learn about the who, what, and how of this important requirement for collection agencies!
To ensure the following, the New Jersey Department of Treasury’s Division of Revenue and Enterprise Services obligates all collection agencies to procure a sufficient surety bond:
- Faithfully obey the laws and rules that govern collection agencies
- Turn over the proceeds collected to the individual, corporation, company, business entity, or any person for whom the amount is taken for collection
- Honor the contractual agreement the collection agency has made with any individual, corporation, company, or business entity
Any default from the conditions mentioned will be a ground for a bond claim. The Obligee of the surety bond will have the right to recover the amount for the benefit of the person who has suffered damages from the collection agency’s misconduct.
What is the Collection Agency Bond amount?
The bond amount is $5,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Collection Agency Bond?
To secure this type of bond, the collection agency must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of New Jersey
- The surety bond should be made payable to the State of New Jersey, for the benefit of any person who will suffer damages from the potential misconducts of the collection agency
- The bonded collection agency should obey the provisions of Title 45 of the New Jersey Revised Statutes, as well as the rules and regulations of the New Jersey Department of Treasury’s Division of Revenue and Enterprise Services
- If the bonded collection agency commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond up to its penal sum
Ready to start on your bond? APPLY HERE!