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.
- Required by: Minnesota Department of Commerce
- Minimum Bond Amount: $50,000
- Maximum Bond Amount: Varies
- Valid: 1 year – Renewable
This bond guarantees that the principle will abide by all Minnesota state laws outlined in the Minnesota under the Fair Debt Collection Practices Act Chapter 332.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
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:
- Surety bond
- Online license application
- Supporting documents for application (listed on official page)
- $1,000 application fee + $500 for each additional branch
All licensing fees are required by the obligee, not the surety company.
For more licensing information, visit: Minnesota’s government website.