What Is a Florida Collection Agency Bond?
Collection agencies in Florida need to get licensed with the state Office of Financial Regulation. Obtaining a Florida collection agency bond is one of the main requirements you have to meet, so that you are allowed to operate.
Just like the rest of collection agency bonds, your bond is there to protect your customers and the state of Florida. It guarantees your legal compliance. In case of breaches, you can face a bond claim.
As all Florida surety bonds, this bond is also a three-party contract. The principal is your collection agency. The Office of Financial Regulation is the obligee which imposes the bonding requirement. The surety is the third entity that provides the bond.
Questions about Collection Agency Bonds in Florida
Who needs to obtain a bond?
The Florida collection agency bond is required of anybody who wants to conduct activity as a third party debt collector in the state. It is one of the criteria for getting a Florida collection agency license.
The purpose of the bond is to guarantee that you will follow the law in your operations. In particular, it ensures your compliance with the Florida Revised Statutes, Chapter 559, Part V. You need to use the official bond form provided by state authorities. Although the bond does not expire, you need to renew it annually before December 31st, as the state license needs to be renewed then.
How much does the bond cost?
The bond amount that Florida commercial collection agencies have to post is $50,000. Your bond premium, however, is different. It’s only a fraction of this amount, which is often between 1%-5%. This means that you might end up paying between $500 and $2,500 to get bonded.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Florida Collection Agency Bond||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$5,000|
How is your bond premium determined? The main factors that your surety has to consider are your personal credit score, business finances, as well as assets and liquidity. After examining them, it can assess the risk that bonding you poses. Your bond price will be lower if your overall profile is solid.
Do you need more information about the bond price formation? Our surety bond cost page is a great resource that you can consult.
What if I have bad credit?
Even if your finances are problematic, you can still get the bond you need with us. Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants with financial issues such as low credit score, tax liens, bankruptcies, and civil judgements.
You can expect to pay between 5% and 10% for your bond. The higher price is needed to compensate for bonding risk, which is increased. We work with a number of A-rated, T-listed surety companies, so we can still look around for the best bonding option to match your case.
How do I get a Florida collection agency bond?
It is not difficult to start your bonding. Apply online for a free, no-obligations bond quote today - and you will see it immediately. In case you want to obtain the exact price you have to pay, you need to complete the application and provide us with all your documents.
Once you have obtained your bond, you need to provide Office of Financial Regulation with the bond, together with a statement from your surety that you have paid the annual premium for your bond fully, and that the issued bond meets the specific requirements set in the state statutes.
Have more questions? Our How to Get Bonded page offers a thorough explanation of the bonding process that you can refer to at any time.
If you need to speak to our bonding specialists, just call us at (877) 514-5146. We’ll be happy to help.
How are bond claims handled for Florida collection agencies?
Surety bonds protect the state and the general public. They are not insurance for your business. Instead, they safeguard your customers from potential fraudulent activities on your side, such as mishandling of funds, failing to redirect collected finances, or other types of misuse. This means that if you do not abide by state rules, you can end up with a bond claim. Affected parties can claim a compensation of up to $50,000, which the penal sum of your Florida collection agency bond.
While your surety takes over the costs initially, you have to reimburse it soon afterwards. This means that bond claims can cause serious financial harm. They can also prevent you from getting bonded at a later time.