As in most states where regulated, an Arkansas collection agency bond is required of persons and entities engaging in collection activity. Arkansas statutes defines a collection agency as any person who works with or employs one or more other persons, or any business which engages in the collection of delinquent accounts, bills, or other forms of indebtedness, or any person, partnership, corporation, or association using a fictitious name or any name other than their own in the collection of their own accounts receivable, or any person, partnership, corporation, or association which solicits claims for collection. The State Board of Collection Agencies must require each licensee to secure an Arkansas collection agency bond in an amount not less than five thousand dollars ($5,000) nor more than twenty-five thousand dollars ($25,000) for each location that the agency operates. The obligation contains one simple provision, that “upon written demand the licensee will pay and turn over to or for the person, partnership, association, or corporation from whom any account, bill, or other indebtedness is taken for collection in accordance with the terms of the agreement upon which it was received for collection”. The Arkansas collection agency bond is not cumulative, being limited to only the face amount of the bond. In the event that there are multiple claims, the surety may pay the aggrieved parties on a prorata basis. Surety may also cancel the surety bond upon thirty days notice to the Board of Collection Agencies. The Board’s website is a convenient and comprehensive source for information about licensing, the state laws governing collection activity, the Arkansas collection agency bond form as well as other forms pertinent to the licensing and renewal process. You can find the Board’s website by clicking here.
Arkansas surety bond leader, Surety One, Inc. is a surety bond specialist in the financial services sector. We offer collection agency bonds to all applicants regardless of principal credit and financial statement condition. We also offer broad fidelity bond coverages to mitigate employee dishonesty risks. Visit us at SuretyOne.com, call (800) 373-2804, or email Underwriting@SuretyOne.com for an Arkansas collection agency bond application or bonding support in any state.
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