What is a Utah Collection Agency Bond?
A quick guide to one of the most critical Collection Agency registration requirements in Utah!
A surety bond is required by the Division of Corporations and Commercial Code of the Department of Commerce of the State of Utah for all individuals, partnerships, corporations, or business entities who are applying to become a registered Collection Agency in the state.
The surety bond requirement is stated in Title 12 Chapter 1 of the Utah Code Annotated.
A Collection Agency is a business entity that collects default accounts or debts for another person.
What is the bond amount?
The bond amount is $10,000.
If you have an excellent credit score, you may be eligible to pay a very low bond premium! The bond premium starts at $100.
Find out you need to pay for this bond today! Get your FREE quote here!
What are the Collection Agency bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business within the state and is licensed by the Utah Department of Insurance
- The bond should be made payable to the State of Utah
- The bond should be written in the form specified by the Division of Corporations and Commercial Code of the Department of Commerce of the State of Utah
- The Collection Agency registration applicant should comply with the provisions of Title 12 of the Utah Code Annotated, the rules and regulations of the Division of Corporations and Commercial Code of the Department of Commerce of the State of Utah, and all the other applicable rules
- If the Collection Agency commits a valid violation, the Division of Corporations and Commercial Code of the Department of Commerce of the State of Utah will be eligible to make a claim on the surety bond
- The Collection Agency should remit the collection proceeds to the person who hired them to collect the funds for
- The surety bond should remain valid for one year unless otherwise specified
How can I obtain a Collection Agency Bond?
To secure this type of bond, the Collection Agency registration applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond.
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!
Ready to get started on this bond? Apply here today!