Maine Collection Agency Bonds Explained
Debt collectors in Maine have to get licensed prior to launching operations in the state. Posting a collection agency bond is one of the main requirements that you have to satisfy so that you can obtain the license.
The goal of the bond is to protect the interests of your customers and the state. It ensures your legal compliance.
In practical terms, the bond represents a three-party contract, in which your collection agency is the principal. The Maine Department of Professional and Financial Regulation is the obligee. The surety is the third entity that provides the bond.
Questions about Collection Agency Bonds in Maine
When do I need to get bonded?
The Maine Department of Professional and Financial Regulation is the authority that oversees the activities of debt collectors in the state. It requires all applicants for a Maine collection agency license to post a surety bond. Its purpose is to guarantee you will follow the Maine Fair Debt Collection Practices Act, as well as all other relevant laws.
How much should I pay for the bond?
The bond amount for getting a Maine debt collector license varies depending on the exact activities in which you want to engage:
- $20,000 - direct collections
- $15,000 - repossessions
- $5,000 - letter writing company
To get bonded, you have to pay a small percentage of the required amount, referred to as the bond premium. It is formulated after careful consideration of your personal and business finances.
Your surety has to examine your personal credit score, company finances, and any fixed and liquid assets you demonstrate. This is how it can set your exact surety bond cost, based on the level of bonding risk that you pose. The lower it is, the smaller premium you can expect to pay. Rates for applicants with stable finances are between 0.75% and 5%.
|Maine Collection Agency Bond Cost Based on Credit Score|
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Letter writing company||$5,000||$100||$100-$125||$125-$250||$250-$500|
Can I get bonded with financial problems?
It is possible to get a bad credit bond via Lance Surety Bonds’ Bad Credit Surety Bonds program. Created for applicants struggling with low credit scores, tax liens, bankruptcies, and civil judgments, it’s an opportunity to obtain the bond that you need.
The rates are in the range of 5% to 10% due to the higher risk. As we partner with a number A-rated, T-listed surety companies, we are able to offer you a top bonding option despite your financial issues.
How can I get bonded?
It is easy to start your bonding process by filling out our online application form (it takes 5min). Once we have your full set of documents, we can determine your exact quote. Then you can buy the bond online.
Our How to Get Bonded page is a detailed resource on how bonding works. If you need more information, you can reach us at (877) 514-5146 to speak with our bonding specialists.
What if I get a bond claim?
The goal of your Maine collection agency bond is to protect your customers against potential illegal activities on your side. Thus, if you engage in unlawful acts that harm a party, they can seek fair compensation via a claim. The bond amount that you posted is the maximum sum that a claimant can demand.
If the case is proven, you are liable to cover the costs. Initially, your surety may pay the claim, but you still need to repay it. Thus, it is best to avoid claims, as they can cause serious harm to your business.
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!