What Is a California Telemarketing Bond?
Telephonic sellers in California must get licensed with the state Attorney General’s Office. You have to provide a California telemarketing bond as one of the main licensing requirements, so that you can operate in legal compliance.
Telemarketing bonds provide an extra layer of protection for the state and the general public. Their purpose is to guarantee that you will follow applicable laws when operating as a telephonic seller. A bond claim can be made against you if you fail to do so.
This California surety bond is, like the rest of bonds, a three-party contractual agreement. The principal is your telemarketing company that is required to get bonded. The Attorney General’s Office is the obligee to which you have to present the bond. Finally, the surety is the one providing the bond.
Questions about Telemarketing Bonds in California
Who needs to obtain this bond?
Telemarketing companies who want to operate in California need to get registered with the Attorney General’s Office. You have to complete the registration form and provide a telemarketing bond in the appropriate official form form A. The bond guarantees you will comply with the rules that govern your trade, as set in Article 1.4, Division 7 of the state’s Business and Professions Code.
You may also need to get an additional bond in form B if you want to conduct promotions with value above $500. The bond amount is then set on the basis of the promotion value.
How much does the telemarketing bond cost?
The bond requirement for telephonic sellers in California is $100,000. This is called the bond amount, which is different from your bond premium. The price that you will end up paying is only a few percents of the required amount. The typical rates are between 1% and 3% for applicants with good credit.
Surety bond name | Surety bond amount | Above 700 | Between 650-699 | Between 600-649 | Below 599 |
---|---|---|---|---|---|
California telemarketing bond | $100,000 | $750-$1,500 | $1,000-$2,500 | $2,500-$5,000 | $5,000-$10,000 |
Your surety bond cost is calculated on the basis of your personal credit score and business finances. Other important factors are any assets and liquidity you may have, as well as your business know how. The surety that you apply with needs to assess your financial and business status to judge the level of the bonding risk. If your overall profile is solid, you are likely to pay a smaller bond premium.
What if I have bad credit?
You can still obtain the bond you need with us, even if you struggle with low credit scores, tax liens, bankruptcies, or civil judgements. Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants with problematic finances.
The typical rates are in the range of 5% to 10% to compensate for the increased risk in the bonding. We work with a number of A-rated, T-listed surety companies, which means we can look for the best bonding option for your circumstances.
How do I apply?
Need more information about the way bonding works? Here is our How to Get Bonded page, which can provide you with a thorough overview.
Call us at (877) 514-5146 for any questions you may have, or if you need help with your application.
How are bond claims handled for telemarketing companies?
The telemarketing bond you obtain is there to guarantee your legal compliance. If you engage in unlawful practices, such as making telephone sales outside of the regulated hours, or make illegal advertising, you may get a bond claim. In this way, an affected party can get a financial compensation for suffered damages.
Proven bond claims are a serious financial threat for your business. While your surety may take over the costs initially, you are liable to repay it. This means the wisest course of action is to avoid claims.
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Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
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