A Tennessee collection service bond along with fees, financial statements and other agency documents must be filed with the State before a collection agency can begin operations. Tennessee law defines a “collection service” as any individual (or entity) that commences, conducts, or operates any collection service business in the State of Tennessee, except any person handling claims, accounts, or collections under order of any court, attorneys at law, and any person engaged in the collection of indebtedness incurred in the normal course of business or the business of a parent, subsidiary, or affiliated firm or corporation. ALL other parties must provide the Tennessee collection service bond. All collection services doing business in and/or located within the State of Tennessee whether they be resident or non-resident entities, must employ a location manager who must be licensed by the Collection Service Board prior to serving in such capacity. There is a state licensing examination for the location manager and a requirement that the applicant provide CPA prepared financial statements for the Board’s review. The Tennessee collection agency bond must be written in an amount based on the agency employment count, as follows; 1-4 employees — $15,000 collection service surety bond, 5-9 employees — $20,000 collection service bond, or for 10 or more employees — $25,000 collection service bond. The obligation is condition on the licensee faithfully and truly accounting to the licensee’s clients within thirty (30) days after the close of each calendar month, unless otherwise provided by mutual agreement between the collector and the client. Tennessee surety leader, Surety One, Inc. specializes in the bonding needs of the financial services sector. We offer collection service bonds to all applicants in every state where collection agencies must be bonded. We also offer superlative fidelity bond coverages especially for colletions agencies to mitigate the risk of internal dishonesty losses. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Tennessee collection service bond application or Tennessee collection agency bond information.
