What Is an Arizona Telemarketing Bond?
Telephonic sellers in Arizona undergo a licensing procedure with the Secretary of State. One of the requirements you have to meet in order to start your business is to obtain a telemarketing bond.
The goal of getting bonded is to ensure an extra layer of protection for the state and for the general public. In case you breach the law in your telemarketing activities, a harmed party can make a file claim to seek a reimbursement.
Your bond works just like the rest of Arizona surety bonds. It is a contract between three entities. Your telemarketing company is the principal. The Secretary of State is the obligee that requires the bonding. The surety provides the bond and backs your business.
Questions about Telemarketing Bonds
Who has to get such a bond?
If you want to run a telephone solicitation business in Arizona, you have to register with the Secretary of State. Together with submitting a completed application form, you also have to provide a $100,000 Arizona telephone solicitation bond.
The bond guarantees your compliance with Article 6, Chapter 9, Title 44 of the Arizona Revised Statutes. It provides protection for consumers via a bond claim up to four years after a legal omission on your side has occurred.
What’s the surety bond cost?
The bond amount that you are required to post when registering as an Arizona telemarketer is $100,000. While the amount is considerable, the actual bond cost you have to pay is different. It’s referred to as the bond premium. It is often between 1%-5% of the bond amount for applicants with stable finances.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Arizona telemarketing bond||$100,000||$750-$1,500||$1,000-$2,500||$2,500-$5,000||$5,000-$10,000|
The bond premium is formulated by considering your personal and business finances. Your surety bond cost depends on the bond amount you need to post, but also on your credit score, business financials, as well as any assets and liquidity that you can demonstrate. That’s how your surety measures the level of bonding risk. You can expect a lower price if your overall profile is solid.
What happens if my finances are problematic?
Are you struggling with low credit score, tax liens, bankruptcies, or civil judgements? Then our Bad Credit Surety Bonds program might be just for you. It’s here to help applicants with problematic finances to get the bond they need.
The bonding rates are typically in the range of 5% and 10%. Since the bonding risk is higher, the increased prices compensate for it. You’re still able to get a top rate with us due to our cooperation with a long list of A-rated, T-listed surety companies. We can choose the best matching bonding option for your particular case.
How do I get bonded?
You can learn all details about the bonding process on our How to Get Bonded page.
Lance Surety Bonds’ experts are here to help. If you need assistance or have questions, you can reach us at (877) 514-5146.
What if my telemarketing company receives a bond claim?
You may face a claim on your bond if you fail to follow your obligations under the Arizona Revised Statutes and other applicable laws. Some actions that can lead to a claim include engaging in fraud, misrepresentation or other deception of consumers. If the claim is proven, you are liable to compensate the affected people. The maximum penalty is your bond amount, $100,000.
Initially, your surety may step in to cover the costs to ensure a quick reimbursement of the claimant. You are liable to repay it completely. Thus, bond claims can seriously harm your business both financially and in terms of your reputation. You are likely to have difficulties with future bonding as well.