Florida Telemarketing Bonds Explained
The Florida Telemarketing Act requires call centers, telemarketers, and phone solicitors to post a telemarketing bond in the amount of $50,000 before they can get licensed. The bond guarantees compliance with the Florida Statutes, Sections 501.601 through 501.626.
The telemarketing bond is there to provide protection to people being approached by telemarketers, so they have a legal recourse in course they become victims of fraud. The bond guarantees compensation of $50,000 which the bonding company that backs the bond is obliged to provide. Still, telemarketers who commit violations will eventually be responsible for reimbursing the surety,
You can get a free bond quote, which is the first step towards applying for your telemarketing bond.
To learn more about this type of bond, check out the sections below.
Questions about Telemarketing Bonds in Florida
Who needs a Florida telemarketing bond?
There are a number of license exemptions, listed in Section 501.604, for companies or private individuals. For those who don’t need a license, the bonding requirement doesn’t apply to them either.
Anyone in Florida who is required by law to get licensed will also need to obtain a telemarketing bond as part of the licensing process.
How much does a Florida telemarketing bond cost?
Telemarketing bonds in Florida are paid in annual premiums, which vary between 0.75% and 10% of the bond amount, depending on the applicant’s credit score and financials. Here are some estimates you can use as reference.
|Bond Type||Surety Bond Amount||Credit Sore|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Florida Telemarketing Bond||$50,000||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
Naturally, these amounts are just estimates. There are numerous factors affecting bond premiums, so there is no way to determine your exact cost from a chart. The surest way to find out your cost is by submitting our online application.
If you want to learn more about how premiums are determined, go to our What Does a Surety Bond Cost? Page.
What happens if I have a low credit score?
As you can see from the estimates in the table, the lower your credit score, the higher your premium. This is understandable in light of the fact that sureties are legally responsible for your claims. By charging higher premiums, they are trying to minimize the risk associated with the bond, similar to how banks charge higher interest rates for riskier loans.
Apart from the higher premium, you credit score should pose no problems to your application. Thanks to the bad credit surety bonds program we run, you can get bonded at the lowest possible rates. Taking steps to improve your credit score, or to clear delinquencies from your credit report, can help you qualify for a lower premium when you need to renew your bond.
Our surety bond agents can also provide more useful information. Simply call us at (877)-514-5146!
Got it. What is the application process like?
Applying to get bonded as a telemarketer in Florida isn’t complicated. Once you submit our online application, we’ll make sure to do all the paperwork for you. All you have to do is provide ownership information, sign an indemnity agreement with the bonding company, and pay your quote.
Turnaround time in normal circumstance is fast, but we always advise applicants not to wait until the very last moment to apply for their bond. Ready to apply?
Your bond is valid for one year after the date it is signed by the surety. The renewal process isn’t much different from the application process itself. If you choose Lance Surety Bonds we will also make sure you don’t miss your deadline by sending you renewal reminders.
Florida Telemarketing Bond Form
You can have a look at the bond form here, to get a better idea of what kind of information you will need to provide as part of the bonding process.
What if someone files a claim against me?
If you have been notified of a valid claim against you, you should pay it within the provided timeframe. Failure to do so will mean the surety has to provide the compensation instead of you. This is a less favorable scenario, as you will then have to go to court over the claim.
Sometimes, claims do not have valid foundations and you can dispute them. You surety bond provider can even help, if you provide them with enough evidence that the claim is groundless. This is why, if you have been in dispute with a claimant, you should keep your communication well-documented at each step.
How do I get a Florida telemarketing license?
Florida telemarketers need to comply with a number of prerequisites before they can get their license. The telemarketing bond is just one of them. You will need to:
- Pay a $1,500 licensing fee
- Submit copies of the scripts you use
- Submit the information you provide to prospects
- Obtain a Federal Employer Identification Number (FEIN)
This is not an exhaustive list of requirements. The website of the Florida Department of Agricultural and Consumer Services contains a full checklist you need to review before you can submit your application.