A Collection Agency Bond or Debt Collectors Bond guarantees that monies collected will be properly dispersed to clients and accounted for. Anyone who is operating a collection agency in Washington, or is in the business of collecting or receiving payment for others of any account, bill, or other indebtedness, must be licensed to conduct business. This includes soliciting, collecting, or attempts to collect debts for another (3rd party), the purchasing of late or debts that are "charged off" for collection purposes (whether the business is collecting the debts itself, or has hired another entity to collect the debts).
Out-of-state, in-state and resident collection agencies are required to have a $5,000 surety bond.
The obligee is the entity that requires the bond, in this case it is the State of Washington Business Licensing. The bond ensures that the principal (the applicant) will comply with the collection agency rules and regulations. If a person files a claim against the collection agent or agency and been has been found in violation, the principal is responsible for the damages. In the case of a surety bond, the surety may pay the claim and the principal is responsible to repay the surety for the claimed amount.
The premium that you pay for a Washington Collection Agency Surety Bond is dependent on credit.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application