Maryland Collection Agency Bond

If you want to launch a collection agency in Maryland, you have to obtain a license from the Department of Labor, Licensing and Regulation. One of the requirements is posting a surety bond of $5,000, which may in some cases be increased to a larger amount. As in other states, the licensing process for collection agencies is conducted via the Nationwide Multistate Licensing System and Registry (NMLS) website. The bond guarantees you will follow applicable rules and regulations, including the Maryland Code.

In order to obtain a Maryland collection agency license, you have to post a $5,000 surety bond. This is the bond amount required, which is different from your surety bond cost. It is only a fraction of the amount and is also referred to as the bond premium. In case you can demonstrate strong financial stats, you are likely to get a rate between 0.75% and 5%.

Your personal credit score, business financials, and liquidity and assets are the main factors that determine the bond cost that you have to pay to get bonded. The surety that you apply with has to assess them as indicators that showcase your financial and business strength. This is needed because of the inherent bonding risk. The more stable your finances are, the lower price you’ll get for your bond.

With Lance Surety Bonds, you can get the collection agency bond that you need for your licensing despite your financial difficulties. We run our Bad Credit Surety Bonds program to give a bonding option for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.

We work with numerous A-rated, T-listed surety companies, which allows us to access a wide variety of bonding programs. Thus, even though the bad credit bond rates are between 5% and 10%, you can still get a top price with us.

To obtain a collection agency bond in Maryland, you need to follow the steps below:

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

2. Receive your free, no-obligation quote

3. Pay for your bond online

4. Receive your collection agency bond (digital and a hard copy)

For further details about the way bonding works, you can consult the extensive guide on our How to Get Bonded page.

Lance Surety Bonds’ specialists are available to assist you with any queries you may have. Just call us at (877) 514-5146.

Since your collection agency bond is not insurance for your business, you can get a bond claim if you transgress from the Maryland Code and other applicable laws. If a party suffers damages due to your unlawful actions, they may seek a compensation up to the penal sum of your bond, which is $5,000.

On proven claims, your surety can step in to cover the costs at first. This ensures the claimant gets a quick reimbursement. Still, all payments have to be covered by you soon after, as set in the bond indemnity agreement. Thus, the wisest course of action for your business is to stay away from claims.