Wisconsin collection agencies are statutorily regulated by § 218.04 of the Wisconsin State Legislature. The Wisconsin Department of Financial Institutions oversees the compliance of collection agencies.
Administratively, these collection agents are also regulated by DFI-BKG 74.01. This piece of legislation refers to office requirements, the maintaining of books and records, etc.
The state of Wisconsin also requires you to furnish a surety bond. No specific amount is given by statute.
While the amount of surety bond is not specifically mandated, it is, according to Wisconsin law “...in a sum that the division may regard as reasonably necessary...” In point of fact, the amount of the bond typically required seems to be a minimum of $25,000.
No maximum amount is specified.
For the Wisconsin collection agency surety bond amounts up to $50,000, our agency offers streamlined processing for this bond. What this means is that after completion of an application, and the payment of the premium, the bond is issued to you immediately.
There is neither the standard underwriting nor the standard credit score (business or personal) inquiry.
As an example, the $25,000 collection agency surety bond amount will cost you just $188, annually; the $50,000 WI collection agency bond will cost you just $375 annually.
For surety bond requirements above $50,000, if you qualify, and are an established business, meeting certain parameters, we have other ways to qualify as well.
If you do not meet these qualifications, it’s very simple: We’ll just undergo the standard underwriting procedure, which will generally include a credit inquiry, and we will still be able to offer you a fair premium.
Your collection agency surety bond will have a standard of term of one year.
While it is entirely up to you, options exist to prepay this surety bond for up to 2 or 3 years, thereby offering you a savings over year over year renewal of this bond.
The purpose of you collection agency bond is not for the protection for your company, its property, or any employees. As stated by the Wisconsin Legislature §218.04, the surety bond’s purpose is to “...safeguard the interests of the public.”
The bond effectively protects against acts of malfeasance or criminal wrongdoing on the part of a collection agency, including any employees, agents, or managers, which in turn causes some harm to the public.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, and fiduciary surety bonds throughout all of Wisconsin.
Our agency also provides surety bonds nationwide.
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