Hawaii Collection Agency Bonds Explained
Are you planning to launch a collection agency in Hawaii? You need to undergo a rigorous licensing procedure in order to prove your suitability for this profession. It involves providing acollection agency bond.
The bond requirement guarantees your legal compliance. It serves as a protection mechanism that safeguards the interests of your customers and the state in which you operate.
The required bond works as a three-party contract, with the principal being your business. The Hawaii Department of Financial Institutions is the obligee to which you have to provide it, and the surety is the bond provider.
Questions about Collection Agency Bonds in Hawaii
Who needs to get a bond?
In order to obtain a Hawaii collection agency license, you have to provide a $25,000 surety bond for operating your first location, and an additional $15,000 for every extra branch office. The bond ensures you will follow Chapter 443B of the Hawaii Revised Statutes, and all other relevant laws.
How much would I pay to get bonded?
The basic bond amount for Hawaii collection agencies is $25,000. The final amount depends on the number of locations that you want to have, with $15,000 required for each additional branch. However, you need to cover only a bond premium, which is a small percentage of the required amount.
When you apply with a surety, it has to examine your personal and business finances carefully. This is how it can determine your surety bond cost, taking into consideration factors such as your personal credit score, business finances, and fixed and liquid assets you may showcase. By doing this, it can assess the level of bonding risk. The premium depends on it, so you can expect lower costs if your finances are stable.
|Hawaii Collection Agency Bond Cost Based on Credit Score|
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Collection agency bond||$25,000||$188-$375||$250-$625||$625-$1,250||$1,250-$2,500|
Is it possible to get bonded with bad credit?
Yes, with Lance Surety Bonds’ Bad Credit Surety Bonds program you are able to obtain a collection agency bond even if you have financial problems. It is designed for applicants with low credit scores, tax liens, bankruptcies, and civil judgments.
The bad credit bond rates are in the range of 5% to 10%. The higher cost is due to the increased risk. As we work with a number A-rated, T-listed surety companies, we are still able to present you with a top bonding option.
How do I get my bond?
It is easy to start your bonding process. You can fill out our online application form (it takes 5min) and attach your complete set of paperwork. Then we can send you an exact quote. You can purchase your bond online straight away.
We have prepared a thorough How to Get Bonded guide in case you need further information.
You can also speak with our bonding experts by calling us at (877) 514-5146.
What happens in case of a bond claim?
You may receive a claim against your collection agency bond if you fail to follow Hawaii laws. A party who has suffered damages due to your fraudulent or illegal actions can ask for a reimbursement. It can be up to the bond amount you have provided.
For proven claims, your surety pays the costs at first, so that the claimant receives their compensation quickly. You are liable to repay it, however, as this is defined in the bond indemnity agreement. Thus, it is best to avoid claims, as they can be costly and harmful for your business.
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What Our Clients Have To Say?
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!
Andrew PoincotLong 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!
Margie MartinezWe 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!