For collection agencies in Minnesota, there are three different bond forms. The forms are based on the structure of your business. Pricing for the surety bond is not affected.
When you call us, we will need to know if your Minnesota collection agency business is:
This will ensure that you will file the correct surety bond with the Commerce Department, which is the regulatory body which oversees collection agencies in the state. The link has information on licensing.
Once you have purchased the collection agency surety bond, you will also want to be careful to file both the surety bond AND the Power of Attorney that our agency will provide to you. The state will not accept your bond without both.
The Minnesota collection agency bond is a minimum $50,000 surety bond.
The bond amount required increases by $5,000 for each $100,000 that your collection agency company receives from debtors who are located in Minnesota, minus the amount of collections received by your agency on those same collections from the previous calendar year.
The bond amount is not to exceed $100,000.
This is required as per § 332.34 of the Minnesota Statutes.
For the $50,000 surety bond amount, there is no credit check or standard underwriting. This means that after completion of a short surety bond application, and payment of the premium, this bond is issued to you immediately.
The premium amount for a $50,0000 Minnesota collection agency bond is $375, annually.
For amounts greater than $50,000, for established collection agency businesses which are at least 3 years old, and meet some other easy requirements, we do offer streamlined processing for this bond.
If you do not qualify, however, then it’s very simple: You’ll just submit to our standard underwriting process, which involves a credit check. But you will still qualify for our excellent pricing levels!
The bond term is for one year. You have the option to prepay the bond for 2 or 3 years; however, you may wish to bear in mind that the amount of surety required may change (unless you purchase a $100,000 bond). Also, our agency offers no refund of the premium.
The bond protects consumers from a collection agency business, of whatever structure, from the failure to comply with Statutes 332.31 to 332.45.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Minnesota. Our agency also provides surety bonds nationwide.
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