Indiana Collection Agency Bonds Explained
In order to launch your collection agency in Indiana, you have to successfully pass a licensing procedure set by the state. One of the requirements that you have to fulfill is to post a collection agency bond.
The bond aims to protect your clients and the state in which you operate. It guarantees you will follow applicable rules and regulations.
The surety bond represents a contract between three parties, with your business as the principal. The obligee is the Indiana Secretary of State, which imposes the bond requirement. The third entity that gets you bonded is the surety.
Questions about Collection Agency Bonds in Indiana
When do I need this bond?
Obtaining an Indiana collection agency license entails meeting a list of requirements set by the Securities Division of the Indiana Secretary of State. They include providing a $5,000 surety bond. It acts as an extra guarantee that you will comply with state laws, such as Title 25 of the Indiana Code.
The Nationwide Multistate Licensing System & Registry (NMLS) handles the licensing procedure, so you have to submit your application and documents via its website.
What are the bonding costs?
If you want to get an Indiana collection agency license, you have to obtain a $5,000 bond per location. This is the bond amount, but you have to cover only a fraction of it, called the bond premium. Applicants with solid finances usually get rates between 0.75% and 5%.
In order to set your surety bond cost, your surety has to take a close look at your personal credit score, business finances, and fixed and liquid assets. By doing this, it can assess how risky it is to get you bonded. The better your overall profile is, the smaller your premium can be.
|Indiana 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||$5,000||$100||$100-$125||$125-$250||$250-$500|
Is it possible to get my bond with bad credit?
Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants facing financial issues. If you are struggling with low credit scores, tax liens, bankruptcies, and civil judgments, this is a great bonding option.
Due to the higher bonding risk, the premiums in this program are between 5% to 10%. Still, we strive to offer you top bonding rates, whatever your credit score is. This is possible because we foster close partnerships with a number of A-rated, T-listed surety companies.
How can I get bonded?
It is easy to get started with your bonding. You need to complete our online application form (it takes 5min) and provide your paperwork. Then we can assess your exact quote. You can purchase your bond online, and we will send you both a digital and a paper version of it.
Would you like to learn more about the intricacies of the bonding process? You can review our in-depth How to Get Bonded guide.
For further questions, don’t hesitate to call us at (877) 514-5146.
What happens in case of a bond claim?
Your collection agency bond protects your customers in the state of Indiana. Thus, if you engage in fraudulent or illegal activities, a harmed party can file a claim against the bond. This is how they can seek reimbursement for suffered damages.
The maximum penalty for proven claims is up to the bond amount provided during licensing. At first, your surety may fully compensate the claimant. As the bond indemnity agreement places the full liability with you, you have to cover all costs afterwards.
Still Have Questions? Check Our FAQ Pages
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!