Businesses, based in New York City or not, which practice debt collection, are by law required to be licensed to conduct business within New York City, specifically.
As a condition of licensing, such businesses are also required to obtain a $5,000 New York City debt collection agency bond.
Information on licensing can be found on the NYC Consumer Affairs website.
The purpose of the NYC collection agency bond is to protect citizens of New York City from acts of fraud, theft, and criminal or civil misconduct committed by a licensed debt collector.
The surety bond, moreover, serves as a financial guarantee that collection agencies pursuing debt collection in the city will abide by all rules and statutes in their professional conduct.
The bond allows persons who can demonstrate financial harm to recoup their loss up to the bond’s $5,000 amount (but not for each individual harmed; in the aggregate).
Should a claim ever be paid on a surety bond, it will be the responsibility of the principal (the purchaser of the surety bond--- you) to reimburse the surety agency in full for all costs involved in satisfying a claim.
Your $5,000 debt collection agency bond has a small premium, in many cases as lows as $100, and it also may be able to be prepaid for a period of two years, offering a small overall savings from an annual renewal.
Licensing by the state for debt collection agencies runs for a period of two years and expires on January 31st of years which end in odd numbers.
Applying for the debt collection agency bond is simple, takes a few minutes, and can be completed over the phone.
Turnaround times for this bond are at most a few hours.
Once paid, our agency can send a copy of the bond to you by email, and the original copy will follow in the mail within the same or by the next business day.
AmeriPro Surety Bonds is a surety bonds-only agency which provides bonds license and permit, contractor, court, and fiduciary bonds throughout New York state.
We also provide surety bonds nationwide.
Or, you may fill out the form below and a Surety Agent will contact you: