A Wisconsin collection agency bond is expected from any party engaging in the business of collecting or receiving for payment for others of any account, bill, or other indebtedness. Pursuant to and licensed under WI Sec. 218.04, collection agencies are hired by creditors to collect the outstanding debts of individuals and companies. While attorneys at law authorized to practice in Wisconsin and resident herein, banks, express companies, health care billing companies, state savings banks, state savings and loan associations, insurers and their agents are exempt, all other parties must provide the Wisconsin collection agency bond and obtain the approval of the Division of Banking. The surety bond obligation guarantees that the agency will comply with the provisions of Sec. 218.04, Wis. Stats., or any subsequent amendment or amendments thereof and all lawful orders, rules and regulations in effect or which may be issued thereunder. The Wisconsin collection agency bond also guarantees payment to the person, partnership, association or corporation for whom any account, bill or other indebtedness is taken for collection, all sums to which such person, partnership, association or corporation shall be entitled, shall reimburse any person, partnership, association or corporation and the fees paid in advance for collection services which cannot be performed pursuant to a written agreement. The Wisconsin collection agency bond guarantees that the collection agency will also pay for any examination or liquidation costs incurred by the Department of Financial Institutions for Wisconsin under the provisions of Sec. 218.04, Wis. Stats., which costs shall be considered a preferred claim. The bond is continuous by its own wording, requiring sixty days notice from surety in order to cancel. The Wisconsin collection agency bond imposes some significant responsibilities on the surety including an obligations to respond very promptly and report claim settlements to the Department. The bond does have a four year “tail”, i.e., allowing for filing of an action against the bond up to four years from cancellation of the surety bond obligation. Wisconsin surety leader, Surety One, Inc. focuses on the bonding needs of the insurance and financial services sector. We collection agency bonds to all applicants in every state where they must be bonded. We also offer broad fidelity bond coverages to mitigate internal dishonesty loss risk. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Wisconsin collection agency bond application or information about any surety or fidelity bond need.
