North Dakota Collection Agency Bond

Any entity that wants to get a North Dakota collection agency license has to obtain a surety bond. The licensing authority in the state is the Department of Financial Institutions, but the Nationwide Multistate Licensing System and Registry (NMLS) handles the actual procedure.

The surety bond that you post as part of the licensing, ensures you will follow the North Dakota Statutes, Title 3, Chapter 5, and other applicable laws.

The bond amount required for a North Dakota collection agency licensing is $20,000 until August 1st, 2021. After that date, applicants will have to provide a $50,000 bond.

However, you have to cover only a bond premium, which is a small percentage of that amount. If your finances are in good shape, the rates can be between 0.75% to 5%.

In order to formulate your exact surety bond cost, your surety has to take a close look at your personal credit score, business finances, and any fixed and liquid assets that you demonstrate. In this way, it can assess the level of risk that your bond application poses. The stronger your finances are, the lower your bond premium is likely to be.

It is possible to get bonded even if your finances are problematic.. You can use our Bad Credit Surety Bonds program, which is designed for applicants with low credit scores, tax liens, bankruptcies, and civil judgments.

Since the risk in the bonding is increased, you can expect bonding rates in the range of 5%-10%. As we foster close partnerships with a long list of A-rated, T-listed surety companies, we are still able to find a top bonding option for your particular case.

The process for getting a North Dakota collection agency bond is as follows:

1. Complete the online application form (it takes 5min)

2. You will receive from a free, no-obligation quote

3. Once you review it, if you are happy with it, you can buy the bond online

4. We will provide you with a digital and hard copy of your bond

Interested in learning more about the way in which bonding functions? Don't miss our in-depth guide on the How to Get Bonded page.

If you have questions or need assistance with your application, Lance Surety Bonds' experts are here to help. You can reach us at (877) 514-5146.

The goal of the bonding that you get as a North Dakota collection agency is to provide a safety net for your customers. It protects them against potential fraud, misrepresentation, and other illegal activities you may engage in. If a party suffers damages due to such actions on your side, they can file a claim against your bond.

The maximum compensation that can be sought is up to the bond amount you have provided. If the case is proven, you are liable to pay these costs. At first, your surety may make the payments to ensure fast reimbursement. However, you are ultimately liable for all the costs. Thus, it is best to avoid claims, as they are harmful to your finances and business reputation.