North Carolina Collection Agency Bond

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The North Carolina Collection Agency Bond is a type of surety bond required to obtain a collection agency license in the state. The bond amount varies from a minimum of $10,000 to a maximum of $30,000. The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a North Carolina Collection Agency Bond

At Surety1.com, we make it easy to obtain this surety bond. Our simple, three step process is as follows:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the North Carolina Collection Agency Bond will be shipped to the bond principal (licensee) for original signature. Once singed the bonds should be mailed to:

NC Dept. of Insurance
Agent Services Division
ATTN: NIBE Team
1204 Mail Service Center
Raleigh, NC 27699-1204

^{(1)The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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For a list of states that require collection agency bonds, visit our collection agency guide page.

Who Needs This Surety Bond?

The bond is a requirement of the North Carolina Department of Insurance. In the state, a collection agency means a person directly or indirectly engaged in soliciting, from more than one person delinquent claims of any kind owed or due or asserted to be owed or due the solicited person and all persons directly or indirectly engaged in the asserting, enforcing or prosecuting of those claims.  “Collection agency” includes any of the following:

• Any person that procures a listing of delinquent debtors from any creditor and that sells the listing or otherwise receives any fee or benefit from collections made on the listing.
• Any person that attempts to or does transfer or sell to any person not holding the permit prescribed by this Article any system or series of letters or forms for use in the collection of delinquent accounts or claims which by direct assertion or by implication indicate that the claim or account is being asserted or collected by any person, firm, corporation, or association other than the creditor or owner of the claim or demand.
• An in-house collection agency, whereby a person, firm, corporation, or association sets up a collection service for his or its own business and the agency has a name other than that of the business.
• A “debt buyer.” As used in this subdivision, the term “debt buyer” means a person or entity that is engaged in the business of purchasing delinquent or charged-off consumer loans or consumer credit accounts, or other delinquent consumer debt for collection purposes, whether it collects the debt itself or hires a third party for collection or an attorney-at-law for litigation in order to collect such debt

There are three distinct license categories, depending on where the collection agency is located.

1. Domestic status refers to applicants incorporated in the state of North Carolina.
2. Foreign status refers to applicants incorporated within the United States, but outside of NC.
3. Alien status refers to applicants incorporated outside of the United States. Alien corporations must be owned or majority controlled ultimately by a parent entity incorporating or organized under the laws of the United States.

The determining factor is the location where the company was incorporated.

North Carolina Collection Agency License Requirements

• Board Resolution/Owner Authorization to apply for a NC collection agency license
• Personal Questionnaires (Form DOI-5CA) for all owners, governing members, and officers
• Corporate Formation Documents (attested true and correct by authorized officer)
  • Corporations: Articles of Incorporation and By-Laws
  • LLCs: Articles of Organization and Operating Agreement
  • Partnerships: Partnership Agreement Certificate of Authority from NC Secretary of State (foreign & alien applicants only)

• Proof of DBA/Trade Name Registration (if applicable)
• Detailed Method of Collections (attested true and correct by authorized officer)
• Trust Account Bank Statement (general trust –or– NC clients)
• Samples of Correspondence to Debtors (must include all 5 of the following)
  •  Legal/DBA-Trade Names (both) 
  • Physical address of the agency (no PO boxes)
  • Payment address
  • Placeholder for the NC permit number   
  • Sample receipt for cash/payments
• Corporate Financial Statement/Balance Sheet
  • Financials should be dated end of the month prior to submission of application
  • Prepared in accordance with Generally Accepted Accounting Principles (GAAP)
  • Reflects a minimum $5,000 positive net equity
• SUBMIT ONE (1) OF THE FOLLOWING:
  • Audited financials prepared by CPA firm or independent CPA (attestation not required)
  • Reviewed financials prepared by CPA firm or independent CPA (attestation not required)
  • Compilation financials prepared by CPA firm or independent CPA (attestation required)
  • Internally prepared corporate financials (attestation required)
  • Applicant’s parent company’s corporate financials –AND– the parent company’s written guarantee of the financial performance of the collection agency
• North Carolina Collection Agency Bond
  • Domestic Initial Bond #1 (Form CA-D1 for $10,000)
  • Foreign Initial Bonds #1 & #2 (Form CA-F1 for $10,000 and Form CA-F2 for $10,000)
  • Alien Initial Bonds #1 & #2 (Form CA-A1 for $20,000 and Form CA-A2 for $20,000)
•  Non-refundable Statutory Licensing + Processing Fee (payable to NC Department of Insurance)
  • Payment Options: Credit Card or Check
  • Fees: $1,048 ($1,000/application + $48/processing

For more information visit the North Carolina Collection Agency Website.