The Tennessee Department of Commerce and Insurance administers the licensing of collection agencies.
As part of the licensing process, a surety bond is also required. The surety bond requirement will be in one of three amounts.
AmeriPro Surety Bonds offers this bond as both a new (for first time applicants) and renewal surety bond (for current licensees).
The amount of a Tennessee service license bond that you will be required to obtain will be determined by the number of employees of your collection service agency.
The breakdown is as follows:
To determine the premium, a surety bond application will be required.
Typically, a collection service license company will pay about 1% for any of the surety bond amounts required; however, information provided on the application (along with a credit score check) may influence the final premium due.
Once issued, the Tennessee collection service license bond is active for one year from the date of issuance. In some instances, the bond may be able to be issued, prepaid, for a period of 3 years.
While required of your collection agency company as a prerequisite for licensing, the Tennessee collection service bond is a financial guarantee that your company will honor all commitments to your clients.
The bond protects your clients --- not your collection service agency --- from failure to honor commitments, and any acts of malfeasance or misfeasance or other criminal wrongdoing.
As principal for this surety bond, you are obligated to indemnify the surety for any claims paid against your bond.
AmeriPro Surety Bonds is a surety bonds only agency providing licensing and permit, contractor, and fiduciary surety bonds throughout Tennessee.
Our agency also provides surety bonds nationwide. Please contact us today at:
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