What is an Connecticut Collection Agency Bond?
Connecticut Collection Agency Bond's are required by Connecticut's Department of Banking to obtain your Connecticut Collection Agency Bond. The Connecticut Collection Agency Bond amount is set at $5,000. “Consumer collection agency” means any person or entity who is: (A) engaged as a third party in the business of collecting or receiving payment for others on any account, bill or other indebtedness from a consumer debtor, (B) engaged in the business of debt buying, or (C) engaged in the business of collecting or receiving tax payments, including, but not limited to, property tax and federal income tax payments, from a property tax debtor or federal income tax debtor on behalf of a municipality or the United States Department of the Treasury, including, but not limited to, any person who, by any device, subterfuge or pretense, makes a pretended purchase or takes a pretended assignment of accounts from any other person, municipality or taxing authority of such indebtedness for the purpose of evading the provisions of this section and section 36a-801 to 36a-814, inclusive, as amended from time to time. Also includes a person or entity who furnishes collection systems carrying a name which simulates the name of a consumer collection agency and who supplies forms or form letters to be used by the creditor, even though such forms direct the consumer debtor, property tax debtor or federal income tax debtor to make payments directly to the creditor rather than to such fictitious agency. It further includes any person who, in attempting to collect or in collecting such person’s own accounts or claims from a consumer debtor, uses a fictitious name or any name other than such person’s own name which would indicate to the consumer debtor that a third person is collecting or attempting to collect such account or claim.
The State requires a Collection Agency bond for :
a $5,000 or a $25,000 surety bond is required depending on the loan amount
Different parts of a bond:
There are 3 parts to a Collection Agency surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Collection Agency Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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Connecticut Collection Agency Bond Information and Requirements:
If you wish to apply for a consumer collection agency license you should begin by first reviewing Connecticut’s Jurisdiction-Specific Requirements along with Connecticut's consumer collection licensing statutes, which provides the current licensing procedures and requirements applicable to consumer collection agencies.
If your company already has a completed record in the Nationwide Multistate Licensing System and Registry, then applying for a license in Connecticut merely involves filing your company's record (Form MU1), control person records (Form MU2), and relevant branch records (Form MU3) with Connecticut through the NMLS and mailing in the jurisdiction-specific requirements to the Department.