Surety bonds are required in most states before debt collectors can get their license. Bonding is tricky since requirements differ across state lines and state legislation is always subject to change. However, surety bonding requirements are important to understand—even if you’ve been around for years. No one is immune to claims and it’s easy to overlook small requirements.
Issues When Getting Licensed and Bonded in A New State
It’s an issue if you need to file for a new license in another state, but you aren’t familiar with that new state’s requirements. There are a few scenarios where you’d need to get a new license. For example, you may need to get a new license in the state of California if the Debt Collection Licensing Act (SB 908) passes. This new act requires licensees to have a bond with a minimum amount of $25,000. Depending on your state, this may be much less than your current debt collector’s surety bond amount.
View this content by subscribing
Please register to unlock this content
I already have an account. Log in
