A Minnesota collection agency bond is required from all parties that conduct within the state a collection agency or engage within the state in the business of collecting claims for others. As per Michigan statute 332.31, Subd. 3. “Collection agency” means and includes any person engaged in the business of collection for others any account, bill or other indebtedness except as hereinafter provided. It includes persons who furnish collection systems carrying a name which simulates the name of a collection agency and who supply forms or form letters to be used by the creditor, even though such forms direct the debtor to make payments directly to the creditor rather than to such fictitious agency. The Minnesota collection agency bond must be mailed to the Minnesota Department of Commerce along with a copy of the application confirmation page from www.pulseportal.com, Michigan’s licensing portal. Pursuant to Section 332.34, The commissioner of commerce shall require each collection agency licensee to file and maintain in force a Minnesota collection agency bond, in a form to be prescribed by, and acceptable to, the Commissioner, and in a sum of at least $50,000 plus an additional $5,000 for each $100,000 received by the collection agency from debtors located in Minnesota during the previous calendar year, less commissions earned by the collection agency on those collections for the previous calendar year. The total amount of the Minnesota collection agency bond shall not exceed $100,000. The bond obligation is a simple compliance undertaking, guaranteeing that the licensee will follow the pertinent sections of the law regulating his or her conduct. Minnesota surety leader, Surety One, Inc. is the ‘No. 1’ bonding resource for the financial services sector. We offer this class of surety bond to all applicants in every state where bonds are required of collection agencies. We also offer superlative fidelity bond coverages especially for colletions agencies to mitigate the risk of internal dishonesty losses. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Minnesota collection agency bond application or information about bonding need.
