Wyoming Collection Agency Bonds Explained
In case you want to start a collection agency business in Wyoming, you need to undergo a rigorous process with state authorities. As part of the undertaking, you have to provide a collection agency bond.
The purpose of the bond is to safeguard the interests of your customers and guarantee you will adhere to state legislation.
The collection agency bond works as a three-party contract. Your collection business is the principal that has to obtain the bonding. The Wyoming Banking Division is the obligee that requires it, and the surety is the third party, which is the bond provider.
Questions about Collection Agency Bonds in Wyoming
Who has to obtain a collection agency bond in Wyoming?
Any entity that wants to obtain a Wyoming collection agency license has to provide a $10,000 surety bond, as required by the state Banking Division. The licensing and bonding process is handled via the Nationwide Multistate Licensing System and Registry (NMLS). The bond requirement ensures your compliance with all applicable laws, including the Wyoming Statutes Annotated, Title 33, Chapter 11.
What are the bond costs?
The surety bond amount that you have to provide as a Wyoming collection agency is $10,000. In order to get bonded, you have to cover a small percentage of this amount, which is your bond premium. It is based on your personal and business finances. For applicants with stable finances, it can range between 0.75% to 5%.
Your actual surety bond cost is determined after a careful assessment of your personal credit score, business finances, and any fixed and liquid assets that you showcase. On this basis, your surety determines the level of bonding risk involved. The stronger these factors are, the lower your bond price is likely to be.
|Wyoming 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|
|Wyoming collection agency bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
Can I get bonded with bad credit?
Obtaining a collection agency bond with problematic finances can be tough. By using our Bad Credit Surety Bonds program, applicants struggling with low credit scores, tax liens, bankruptcies, and civil judgements can still get the bond they need.
Since the risk in the bonding is higher, the rates are usually between 5%-10%. Nevertheless, you are guaranteed a top bonding option with us due to our excellent partnerships with A-rated, T-listed surety companies.
How can I get this bond?
For obtaining a Wyoming collection agency bond, you need to follow these steps:
Our bonding experts will send you a free, no-obligation quote
You can then purchase the bond online
We will deliver you both a digital and hard copy of your bond
Would you like to delve into the details of the bonding process? Make sure to check out our in-depth How to Get Bonded page.
If you have queries or need assistance with your application, Lance Surety Bonds' experts can help. You can call us at (877) 514-5146.
What happens in case of a bond claim?
The purpose of your bonding as a collection agency is to ensure your legal compliance and protect your customers against potential fraud or misuse you may engage in. That's why if you transgress from your obligations, you may end up with a claim against the bond. This is how harmed parties can seek a fair reimbursement.
The maximum compensation that a claimant can demand is the bond amount, which is $10,000 in this case. If the case is proven, you will have to pay the costs. Your surety may do so at first, but you are liable to reimburse it afterwards. Thus, it's best to avoid situations that can give rise to claims, which can seriously hurt your business and reputation.