Nevada Collection Agency Bonds Explained
To get licensed and legally operate in the state of Nevada, collection agencies are required to post and maintain a collection agency bond.
Collection agency bonds are a type of surety bond that provides protection to people seeking debt collection services. By posting the bond, collection agencies promise to abide by state laws pertaining to debt collection, and properly handle funds collected on behalf of their client. The bond also makes sure that debts are only collected through lawful methods.
If a debt collector is found to be in violation of the applicable provisions of the Nevada Revised Statutes (Chapter 649) they can face a claim against their bond.
Feel free to call us at (877)-514-5146 if you have any questions related to this bond.
The Q&A section below provides some additional information that you may find useful.
Questions about Collection Agency Bonds in Nevada
How much do collection agency bonds cost in Nevada?
Each surety bond has a total amount, referring to the maximum coverage it provides to claimants. In this particular case, the total amount varies between $35,000 and $60,000 depending on your monthly balance.
However, collection agencies are required to cover only a small fraction of that amount in order to obtain the bond. This fraction, known as a bond premium, depends mostly on your credit score. Consult the table below to see a breakdown of total amounts (based on monthly balance) and premium estimations (based on your credit score).
|Bond Type||Monthly Balance||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Nevada Collection Agency Bond||Less than $100,000||$35,000||$262.5-$525||$350-$1,050||$875-$1,750||$1,750-$3,500|
|Less than $150,000||$40,000||$300-$600||$400-$1,200||$1,000-$2,000||$2,000-$4,000|
|Less than $200,000||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$5,000|
Although the applicant’s credit score is undoubtedly very important, other factors are frequently considered, to come up with a more accurate price estimation. Such factors can be the company’s experience and their finances.
Check out our “What Does a Surety Bond Cost?” page to get a better idea of the factors that can play a role in your premium.
Can I get bonded if my credit score is low?
Yes, you can still get bonded even with a score of below 650, but you will likely be required to pay a higher premium. This is because surety bond companies are legally required to compensate claimants if you can’t. Therefore, the stronger your finances and the better your credit score, the lower your premium will be because there is less perceived risk involved for the surety.
Lance Surety Bonds has a strong network of bonding companies which allows us to offer some of the lowest rates nationwide for all our clients, without the need for posting collateral or finding a co-signer.
If you have bad credit, check out our page dedicated to bad credit surety bonds for more detailed information.
How can I apply for my bond?
We have a fast, secure and user-friendly online application, which you can fill out in just a few minutes. You will have to provide some basic information about your business, such as name, address, ownership structure and your personal credit score.
After we process your application, we’ll get in touch to give you your quote. At that time, you can ask our agents any questions related to your applications, but don’t worry– we do most of the paperwork for you.
If you encounter any difficulties throughout the application process, you can reach us at (877)-514-5146 and we’ll do our best to help.
What do I need to know about claims?
Your collection agency might trigger a claim if you don’t follow all of the provisions of Chapter 649 of the Nevada Revised Statutes, which outline some prohibited actions. These include:
- Operating without a valid license
- Using a fictitious name unless it’s one filed with the Commissioner of Financial Institutions
- Submit required yearly reports
- Using deceptive means or misrepresentation to collect debts
- Soliciting claims for a location other than the one on your license
- Contacting a debtor’s employer as a means of debt collection
Your Nevada collection agency license expires annually on June 30th and a renewal application is due by June 1st of that year. Keep in mind that you cannot renew your license without renewing your surety bond as well.
Choose Lance Surety Bonds as your surety agency and we’ll make sure you never miss your bond renewal deadline, by sending you useful reminders ahead of time.