New York Debt Collection Agency Bonds
Debt collection agencies would be required to be licensed and post a surety bond, indemnity agreement, or an irrevocable letter of credit. This must be payable to the people of New York, and the bond would be based on the number of persons employed by the licensee. The bond requirement would allow for a 10K bond to be posed for one to four employees; a 25K bond for five to nine employees; 50K bond for 10 to 20 employees and a 75K bond for 20 or more employees. The liability of the surety would be limited to the face amount of the bond. This would be regardless of the number or nature of claims made against the bond for the number of years the bond remains active.