What is an Oregon Collection Agency Bond?
According to a report published by the Urban Institute in 2014, over 35% of Americans have debts pending collection. The same report stresses that 1 out of every 3 Oregon residents has transactions with a collection agency or with an individual debt collector. A study was carried out by Federal Reserve researchers indicating that the collections industry recovers roughly $50 billion each year, collections which were mostly from the consuming public.
While debt collectors are monitored and supervised by the Federal Fair Debt Collection Practices Act (FDCPA), some collection agencies can still get nasty, and some debt collectors can be spiteful to the detriment of their collection agency employers. Is there a protective measure against potential maltreatment and malicious intents? Yes, there is, through the Oregon Collection Agency Bond.
So, what is an Oregon Collection Agency Bond and how does it benefit consumers? This bond is an ironclad warranty that collection agencies will not defy the provisions contained in the Oregon Fair Debt Collection Practices Act, will not engage in any unlawful debt collection practice, and will comply with all of the regulations and policies laid down within the Oregon Revised Statutes Chapter 697. This bond likewise guarantees to protect borrowers in Oregon from collection agencies/debt collectors who utilize false information or who calculatingly falsify facts to obtain payment for any accountability.
Simultaneously, the bond functions as an indisputable assurance to those who are not a party to any debt transaction not to be compromised because an unsettled account of another person which has been neglected, will be transferred or assigned to them.
Why do you need an Oregon Collection Agency Bond?
But if you are a collection agency based in Oregon that’s doing good business, is there still a need to be bonded? Yes, there is, particularly if you desire to have a massive cut of Oregon’s debt collection pie industry. The bond can shield your investments from malicious activities committed by collectors in your employ. It can further your reliability as a collection agency thus making your business attractive to prospective customers and future business associates. The bond will provide you the image of credibility and competence, making you tremendously visible in the midst of cutthroat competition.
What is the cost of an Oregon Collection Agency Bond?
But does an Oregon Collection Agency Bond expensive? And what about premium payments? As an Oregon collection agency, you need to post a $10,000 bond as per requirement by the Director of the Department of Consumer and Business Services. A determining factor of the bond’s premium amount is the collection agency owner’s credit score and financial history. A licensed and credible surety company will request you to furnish documents that will establish how you fared in your previous business dealings (e.g. financial statements) and if you have had criminal convictions in the past.
How do I get an Oregon Collection Agency Bond?
So, is obtaining an Oregon Collection Bond difficult? Getting a bond is an easy process. Just carefully choose the services of a genuine surety professional and give them a call ASAP! With Surety Bond Authority, you will have the answers you need and the solution to whatever concerns you have in protecting your business.