What Is a Utah Telemarketing Bond?
Telemarketers in Utah have to get licensed with the state Division of Consumer Protection at the Department of Commerce. As a part of the licensing, you need to post financial security in the form of a telemarketing bond or irrevocable letter of credit.
This Utah surety bond protects the general public from unlawful activities you may engage in, such as illegal telephone solicitation of goods and services. If you breach the law in your telemarketing activities, a claimant can seek a reimbursement from your bonding.
Your bond is a contract between three entities. Your telemarketing business is the principal. The Department of Commerce is the obligee that imposes the bonding criteria. The surety is the third party that provides the bond for your company.
Questions about Telemarketing Bonds
Who has to get a telemarketing bond?
Telephone solicitors in Utah have to obtain a state permit prior to conducting any operations in the state. The licensing authority is the Division of Consumer Protection at the Department of Commerce. You need to apply via the official telemarketing application form.
Together with your filled application, you need to provide a $50,000 surety bond in the appropriate Utah telemarketing bond form. The bond amount may be set at $75,000 if you have committed previous violations of the Telephone and Facsimile Solicitation Act in the last three years. In general, the bonding guarantees your compliance with the Act and any other relevant laws. The bond should be renewed annually, which can be done through a continuation certificate.
What’s the surety bond price?
The bond amount that you are required to post obtain your permit is $50,000. You may have to obtain a $75,000 bond if you have prior law breaches.
The bond price that you have to pay is different from the bond amount. It’s referred to as the bond premium. It is typically between 1%-5% of the bond amount for telemarketers with solid finances.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Utah telemarketing bond||$50,000||$375-$750||$500-$1,250||$1,250-$2,500||$2,500-$5,000|
|Bond for marketers with previous violations||$75,000||$562.5-$$1,125||$750-$1,875||$1,875-$$3,750||$3,750-$7,500|
Your surety bond cost is formulated not only on the bond amount you are required to obtain. It also depends on your credit score, business finances, and any liquidity or assets. By assessing these factors, the surety you apply with can measure the level of bonding risk and determine your bond premium.
If I have bad credit, can I still get a bond?
Even if you have low credit score, tax liens, bankruptcies, or civil judgements, you can obtain a telemarketing bond with us. Lance Surety Bonds’ Bad Credit Surety Bonds program is designed for applicants with problematic finances.
The bonding rates are slightly higher - between 5% and 10%. This increase is necessary because of the higher level of bonding risk. However, you will still get a top bonding rate with us. We collaborate with numerous A-rated, T-listed surety companies, which means we can shop around for you.
How do I get bonded?
Do you have questions about how bonding works? You can learn all details about the process on our How to Get Bonded page.
Lance Surety Bonds’ specialists are here to help. Don’t hesitate to reach us at (877) 514-5146.
What if my telemarketing business gets a bond claim?
The purpose of your telemarketing bond is not to protect your business, but to safeguard the interests of your customers and the general public. If a person or entity has suffered damages due to any illegal activities on your side, they can seek a reimbursement. A bond claim can be filed against you.
The maximum compensation that can be set on proven claims is your bond amount, which is either $50,000 or $75,000 for Utah telemarketers. While your surety may cover the claim costs at first, you have to pay them back. This makes claims a serious threat to your finances and your business success.