North Dakota Increases Bond Amount For Money Brokers And Collection Agencies

Published: Mar 27, 2019

 

Money brokers and collection agencies that want to operate in North Dakota have to meet new licensing requirements. State legislators are increasing the surety bond requirement for licensees.

North Dakota Senate Bill 2093 was signed into law on March 12, 2019. It stipulates for higher amounts for collection agency bonds needed during the licensing process.

The stipulations in Senate Bill 2093

The North Dakota collection agency bond requirement, as well as the bond requirement for money brokers in the state, has been increased from $20,000 to $50,000. This means that any applicant will have to comply with the new criterion prior to launching legal operations in the state, as regulated by the North Dakota Department of Financial Institutions. The higher bonding amount provides a more significant safety net for the customers of such financial institutions.  

The bill also amends the licensing period for licensees. Previously, it ended on June 30th, while now the expiration date has been moved to December 31st after the date of issuance of the license.

Obtaining your bond

In order to get your bond as a money broker or collection agency in North Dakota, you have to pay a small percentage of the required bond amount. Your actual bond cost depends on the required amount, as well as on your personal and business finances. The stronger they are, the smaller your bond premium would get. If you have a stable profile, you can expect rates in the range of 1% to 5%.

Do you have further questions about the North Dakota collection agency bond increase? You can reach us at 877.514.5146.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.

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