Telemarketing Surety Bond
Currently nine states require call centers that engage in telemarketing and telemarketing firms to obtain and file a surety bond with the licensing agency. Telemarketing is a form of direct marketing to the public which includes telephoning, "appointment setting" for face-to-face sales presentations or by web conference. The telemarketer can perform this activity live or by prerecorded sales pitches. Because the telemarketing industry has been associated with large scale pyramid schemes, pushy sales techniques, preying on the elderly and other unfair and deceptive trade practices, many states have instituted licensing programs and require telemarketing surety bonds to guarantee the licensees' conduct.
Alabama
$50,000 bond
Connecticut
$25,000
Arizona
$50,000
Florida
$50,000
Georgia
$10,000
Idaho
$50,000
Kentucky
$10,000
Michigan
$100,000 bond per location with a maximum of $500,000
Louisiana
$50,000 unless found sanctioned in the State of Utah
Generally telemarketing surety bonds are simply compliance guarantees. We require only a completed application to underwrite. Larger surety bond requests and telemarketers that have been found in violation of the call center/telemarketer laws will be required to submit personal and business financial statements. Surety bonds are essentially unsecured credit instruments therefore personal credit is an important factor in underwriting. We offer non-standard programs to applicants that may have impaired credit or may be "start ups" with no operating history. We decline no one, but rather offer terms that fit each telemarketer.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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