Collection agency surety bonds guarantee that debt collectors will abide by all state and federal laws. The surety bond protects the public legally and financially if the collector breaks the law when dealing with the public. If the principle acts against the bond, the state has the legally ability to cancel the bond and revoke the business license.
Typically, the bond amount is determined by factors such as the number of agency employees, how much revenue is expected, and the population the agency will be serving, among others. The bond premium (the cost to you) is only a small fraction of the bond amount. Surety1 works to get you the lowest possible premium for your bond.
This bond guarantees that the principle will abide by all Illinois state laws and regulations stated in the Illinois Collection Agency Act (225 ILCS 425/8).
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Since this bond is continuous it is in full force and effect until cancelled. If the bond is cancelled, the obligee must be notified of the cancellation at least 60 days before the cancellation date.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
For more licensing information, visit: Illinois’ government website.