Texas Third Party Debt Collector Bond

All debt collectors in Texas need to post a $10,000 third-party debt collector surety bond as required by Texas Finance Code Section 392.101. There is no licensing process, but the bonding requirement is obligatory for running this type of business in the state.

The bond protects the interests of debt collectors clients. It’s in place to guarantee that they will abide by applicable laws.

We recently supported a new debt collection agency located in Southern Texas as they navigated the process of obtaining their Texas third-party debt collector bond. Despite their expertise in debt collection, they were unsure about the bond requirements. We walked them through each step of the bond application, highlighting the importance of financial transparency and the bond's impact on their business. By expediting the bonding process, we ensured that the agency met all state regulations promptly, allowing them to focus on their core operations without unnecessary setbacks.

The required bonding amount for Texas debt collectors is $10,000.

Your bond premium, on the other hand, is only a fraction of this amount. If your credit score is high you can expect bonding rates between 1% and 3% of the bond amount. For a $10,000 bond, you can expect to pay a premium between $100 and $300.

Besides the bond amount you are required to post, there are other factors that affect your bond premium as well. That's why entrusting your bond application to a reputable surety agency is essential. With our assistance, your overall financial standing, encompassing personal credit score, business finances, assets and liquidity, will undergo a comprehensive evaluation. Should you be identified as a low-risk applicant, you can anticipate lower bond premiums.

Learn all about the way in which your Texas third-party debt collector bond price is determined on our surety bond cost page.

Here at Lance Surety Bonds, we know that getting bonded with bad credit can be an uphill battle. Our Bad Credit Surety Bonds program is designed to help third-party debt collectors with low credit scores, tax liens, bankruptcies, or civil judgements.

You can expect bad credit bonding premiums between 5% and 10%. The cost of bonding thus is higher, but it’s still a golden opportunity to get the bond you need. Plus, we have close connections with a number of A-rated, T-listed surety companies, which means that we can select the best bonding option for your particular case.

Getting your Texas third-party debt collector bond is an easy and straightforward process. Apply online today for your free bond quote. Once you complete the application and attach all paperwork, we will send you a commitment-free surety bond quote.

For more information about bonding, our How to Get Bonded page is an excellent resource.

You can always reach us at (877) 514-5146 if you need assistance with your bonding application.

It’s important to learn how Texas third-party debt collector bonds work before you get bonded. Unlike insurance, your bond protects your clients and the state in which you operate. This guarantees your legal compliance with all applicable laws.

In case you transgress the state rules that govern your trade, you can face a claim on your bond. If the claim is proven, your surety will compensate the harmed party up to the penal sum of the bond. Afterwards, you are liable to repay it in full.

Besides the financial burden, claims are also a problem in terms of reputation and future bonding. That’s why the wisest course of action is to avoid them.