Collection agencies, or debt collector businesses operating in North Carolina must be licensed by the Department of Insurance, Agent Services Division.
As a condition of licensing, both collection agencies domiciled in North Carolina, and non-resident agency must furnish and maintain evidence of an active surety bond.
The bond requirement of collection agencies based in North Carolina is a formula.
AmeriPro Surety Bonds provides the collection agency surety bond in the amount required by law.
Article 70 of the North Carolina legal code provides the formula for the surety bond amount required of debt collectors operating in the state.
For the initial bond, the amount required is $10,000. Nonresidents are only required to maintain a $10,000 surety bond.
For the renewal bond, the bond amount will be between $10,000 but no more than $30,000.
The formula for determining the amount of surety bond is as follows:
The total amount of collections that have been paid to the agency, minus the amount in commissions earned on those collections for the prior fiscal year. Take that amount and multiply it by 1/6, and there you have the surety bond required, but no less than $10,000 and no more than $30,000.
The cost for surety bond will be depend on the amount that you require, information provided in your surety bond application, and a credit check.
As a broad general rule, a $10,000 North Carolina debt collection/collection agency bond might cost you as little as $100 annually; and the same bond for $30,000 may cost you as little as $300.
Again, amounts will be determined largely by your credit score.
According to the same Article 70, the North Carolina debt collection/collection agency bond is just for the financial guarantee of those persons or companies for whom the debt collector/agency engages in the collection of debt.
AmeriPro Surety Bonds is surety bonds-only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout North Carolina.
Our agency also provides surety bonds nationwide.
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