Oregon Collection Agency Bonds Explained
Launching a collection agency in Oregon requires you to go through a licensing process with state authorities. It entails providing a collection agency bond.
The bond requirement functions as a safety measure that guarantees your legal compliance. It ensures you will adhere to relevant laws in your debt collection operations.
The collection agency bond that you obtain works as a three-party contractual agreement. Your business is the principal. The Oregon Division of Financial Regulation is the obligee, and the surety is the third entity, which is the bond provider.
Questions about Collection Agency Bonds in Oregon
When is this bond required?
In order to get an Oregon collection agency license, you have to obtain a surety bond. It is an indispensable criterion that ensures you will adhere to Chapter 697 of the Oregon Revised Statutes.
The licensing procedure is handled via the Nationwide Multistate Licensing System and Registry (NMLS). The bond should also be submitted there.
What is the price of the Oregon collection agency bond?
The bond amount for Oregon collection agencies is $10,000. If you don't have a location or trust account in the state, the bond that you have to post is $15,000. On the basis of the required amount, your bond premium is formulated as a percentage of it. This is your actual surety bond cost.
When you apply with a surety provider, it has to examine your personal and business finances to determine the level of bonding risk that you pose. It checks your personal credit score, company finances, and liquidity and assets you may demonstrate. If your overall application is solid, you can expect a lower bond cost.
|Oregon Collection Agency Bond Cost Based on Credit Score|
|Surety bond name||Bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Oregon collection agency bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
|No location or trust account in the state||$15,000||$112.5-$225||$150-$375||$375-$750||$750-$1,500|
Is it possible to get bonded with bad credit?
Yes, bad credit bonding is possible. We run a Bad Credit Surety Bonds program which you can use if you face issues such as low credit scores, tax liens, bankruptcies, and civil judgments.
Due to the increased bonding risk, the rates are higher and range between 5%-10%. We work with a long list of A-rated, T-listed surety companies, which allows us to select a bonding option that best suits your specific case.
What is the bonding process like?
You can apply online for you Oregon collection agency bond in the following way:
You will soon get a free, no-obligation quote
You can then purchase the bond online
We will send you a digital and a hard copy of the bond
Would you like to explore further details about the bonding process? You can delve into the detailed How to Get Bonded page.
Lance Surety Bonds' specialists can provide assistance with your application form or other queries you may have. You can reach us at (877) 514-5146.
What if I receive a claim against my collection agency bond?
The purpose of collection agency bonds is to provide protection for the state in which you operate and for your customers. If you transgress from the law and/or commit fraud, misuse or misrepresent your clients, a claim can be made against your bond you have provided. The amount you have posted is the maximum compensation that can be sought against you.
If a claim is proven legitimate, the reimbursement has to be paid out to the claimant. The surety ensures this is done in due time. However, all costs incurred are your liability in the end. As a result, the best course of action is to avoid claims which can harm your business finances and reputation.