Connecticut Collection Agency Bond

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How Do I Get Bonded?

Connecticut Collection Agency Bonds Explained

Planning on launching a collection agency business in Connecticut? You need to meet a number of licensing requirements, including posting a collection agency bond.

The bond is a prerequisite for obtaining a Connecticut collection agency license. It serves as a safety mechanism against potential illegal activities you may engage in. The bond is, in essence, an extra layer of protection for the state and your customers.

Your collection agency bond represents a three-party contract between your collection agency as the principal and two more entities. The Connecticut Department of Banking is the obligee that requires you to get bonded, while the surety is the third party that provides you with the bond.

Questions about Collection Agency Bonds in Connecticut

Who is required to obtain a collection agency bond in Connecticut?

Any entity that wants to operate as a collection agency has to get licensed with the state Department of Banking. One of the requirements you have to meet is to provide a $25,000 surety bond. The process is handled via the Nationwide Multistate Licensing System and Registry (NMLS). The bond ensures you will follow your obligations under the Banking Law of Connecticut and any other applicable legislation.

How much does it cost to get a collection agency bond in Connecticut?

The bond amount that you have to post as a Connecticut collection agency is $25,000. However, your surety bond cost is only a fraction of this amount. Your actual bond premium would be between 0.75% and 5% if your finances are in good shape.

What factors influence your bond cost? The most important ones include your personal credit score, company financials, and liquidity and assets. You may also provide proof of your professional experience. By examining these indicators, your surety assesses the level of bonding risk that you pose. The lower it is, the smaller your bond premium is likely to be.

Connecticut Collection Agency Bond Cost Based on Credit Score
Surety bond name Surety bond amount Credit Score
Above 700 Between 650-699 Between 600-649 Below 599
Connecticut collection agency bond $25,000 $187.5-$375 $250-$625 $625-$1,250 $1,250-$2,500

* This table provides a ballpark estimate of potential bond costs. Bond pricing can fluctuate over time due to a number of factors. For exact pricing, please complete an application.

Can I get bonded with financial issues?

Yes, you can get the needed bond even if you struggle with problematic finances. Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants with issues such as low credit scores, tax liens, bankruptcies, and civil judgements.

The rates that you can expect for a bad credit bond are between 5%-10% because the bonding risk is higher. As we partner with a number of A-rated, T-listed surety companies, you can count on a great bonding rate from us, irrespectively of your credit score.

How do I obtain this bond?

To obtain a collection agency bond in Connecticut, you need to follow the steps below:

  1. Fill out our online application form (it takes 5min)

  2. We will then send you your free, no-obligation quote

  3. You will then be able to pay for your bond online

  4. Once we receive your payment, we will send you a digital and a hard copy of your bond

Interested in delving further in the nitty-gritty details of the bonding process? Make sure you refer to our in-depth How to Get Bonded page.

We are here to assist you with your queries or bond application. Just reach us at (877) 514-5146 to get help from our bonding experts.

How to proceed in case of a bond claim?

The purpose of your collection agency bond is to safeguard the interests of your customers and the state of Connecticut where your operations are based. In case you fail to follow your obligations under applicable laws, and a party suffers damages as a result, you can receive a claim against the bond. This is how a fair reimbursement can be sought.

The claimants can demand compensation of up to $25,000, which is the bond amount you have posted. If the case is proven, you are liable to cover these costs. The surety that bonded you may pay them at first, but you have to fully repay it soon after. Thus, staying away from situations that can lead to claims is the best course of action, since they can lead to grave financial damages.

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About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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What Our Clients Have To Say?

  • Kimberlee Ables
    Quick 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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    Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
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    We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!

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