{"id":1117,"date":"2013-05-15T03:10:26","date_gmt":"2013-05-15T03:10:26","guid":{"rendered":"http:\/\/suretyone.com\/blog\/?p=1117"},"modified":"2017-07-19T00:18:31","modified_gmt":"2017-07-19T00:18:31","slug":"north-carolina-collection-agency-bond","status":"publish","type":"post","link":"https:\/\/suretyone.com\/blog\/north-carolina-collection-agency-bond\/","title":{"rendered":"North Carolina Collection Agency Bond"},"content":{"rendered":"<p>The Department of Insurance requires a <strong>North Carolina collection agency bond\u00a0<\/strong>from every provider of regulated collection services in the state. \u00a0A &#8220;collection agency&#8221; defined by N.C.G.S.\u00a0\u00a758-70-15, as any person that procures a listing of delinquent debtors from any creditor and that sells the listing or otherwise receives any fee or benefit from collections made on the listing, any person that attempts to or does transfer or sell to any person not holding a collection agency license any system or series of letters or forms for use in the collection of delinquent accounts, an in\u2011house collection agency, whereby a person, firm, corporation, or association sets up a collection service for his or its own business and the agency has a name other than that of the business, and\/or a &#8220;debt buyer&#8221;, meaning a person or entity that purchases delinquent or charged\u2011off consumer loans or consumer credit accounts, or other delinquent consumer debt for collection purposes, whether it collects the debt itself or hires a third party for collection or an attorney\u2011at\u2011law for litigation in order to collect such debt. \u00a0As a condition of license approval, every applicant must file with the Commissioner a <strong>North Carolina collection agency bond<\/strong>\u00a0in favor of the State of North Carolina that is executed by a surety company licensed to transact surety business in this State. \u00a0The bond must remain in force during the licensing period, be continuous in form, and remain in effect until all moneys collected by the agency have been accounted for. The wording of the obligation must expressly provide that the <strong>North Carolina collection agency bond\u00a0<\/strong>is for the benefit of any person, firm or corporation for whom the collection agency engages in the collection of accounts. \u00a0The surety must be written in the amount of ten thousand dollars ($10,000) for an license permit. The amount of the bond for license renewals must be no less than ten thousand dollars ($10,000), nor more than seventy\u2011five thousand dollars ($75,000), following the surety bond calculation formula in N.C.G.S.\u00a0<a title=\"NC Collection agency bond formulas\" href=\"http:\/\/law.onecle.com\/north-carolina\/58-insurance\/58-70-20.html\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a758-70-20(c)<\/a>. \u00a0Upon renewal, to determine the <strong>North Carolina collection agency bond\u00a0<\/strong>penal sum, you calculate the total collections paid directly to the collection agency less commissions earned by the collection agency on those collections for the calendar year ending immediately prior to the date of application, multiplied by one\u2011sixth. \u00a0Foreign (non-North Carolina) applicants must follow a separate set of procedures and provide a different obligation than in-state agencies. \u00a0Non-residents must provide a <strong>North Carolina collection agency bond<\/strong>\u00a0in the amount of ten thousand dollars ($10,000) on the &#8220;foreign applicant surety bond form&#8221;, which in addition to statutory compliance also states that the surety bond is for the purpose of reimbursing the <a title=\"NC DOI\" href=\"http:\/\/www.ncdoi.com\/ASD\/ASD_Collection_Forms.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">Department<\/a> for expenses incurred in visiting and examining a nonresident collection agency in connection with a federal bankruptcy or state receivership proceeding in which the collection agency is the subject. \u00a0On February 25th, Deputy Commissioner Teresa Knowles emitted a <a title=\"NC DOI notice to collection agencies\" href=\"http:\/\/www.ncdoi.com\/ASD\/Documents\/Hot_Topics\/2013%2002%2025~February%2025,%202013-%20Two%20(2)%20Separate%20Collection%20Agency%20Surety%20Bonds%20Now%20Required_CAHT.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">regulatory advisory<\/a> notifying all collections professionals that the Department would be implementing new bond forms AND requiring dual bonds for license holders. \u00a0One of the new North Carolina collection agency bond forms is onerous as it includes no cancellation provision and includes a provision guaranteeing payment by surety of substantiated demands within thirty days. \u00a0Lastly, at the beginning of May, 2013 the Department will activate the new automated license renewal system for &#8220;NIBE&#8221;, or non-insurance business entities, through which all licensees will be required to process renewals and the <strong>North Carolina collection agency bond<\/strong> and its riders or endorsements.<\/p>\n<p><strong>North Carolina surety bond leader<\/strong>,\u00a0<a title=\"Surety One\" href=\"https:\/\/suretyone.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Surety One, Inc.<\/a>\u00a0is a surety bond specialist in the insurance services sector. \u00a0We offer collection agency bonds<em>\u00a0<\/em>to all applicants regardless of credit and financial condition. We also offer\u00a0<a title=\"Surety One fidelity bond page\" href=\"https:\/\/suretyone.com\/fidelity-bonds\" target=\"_blank\" rel=\"noopener noreferrer\">fidelity bond<\/a>\u00a0coverages to insure employee dishonesty risks. \u00a0Visit us at\u00a0SuretyOne.com, call\u00a0or\u00a0<span style=\"color: #ff0000;\">(800) 373-2804<\/span>, or email\u00a0<span style=\"color: #ff0000;\">Underwriting@SuretyOne.com<\/span>\u00a0for a\u00a0<strong>North Carolina collection agency bond<\/strong>\u00a0<a title=\"Collection agency app (Surety One)\" href=\"https:\/\/suretyone.com\/pdf\/all-bonds\/commercial-surety-bond-application.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">application<\/a> or bonding support in any state.<\/p>\n<p>#suretybond #suretybonds #collectionagency #SuretyOne #NorthCarolina<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Insurance requires a North Carolina collection agency bond\u00a0from every provider of regulated collection services in the state. \u00a0A &#8220;collection agency&#8221; defined by N.C.G.S.\u00a0\u00a758-70-15, as any person that procures a listing of delinquent debtors from any creditor and&#8230; <a class=\"more-link\" href=\"https:\/\/suretyone.com\/blog\/north-carolina-collection-agency-bond\/\">Continue Reading &rarr;<\/a><\/p>\n","protected":false},"author":1,"featured_media":2706,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[139],"tags":[1996,296,297,1377,2266,1374,1376,1375,1734,1871,51,2329],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>North Carolina Collection Agency Bond<\/title>\n<meta name=\"description\" content=\"The Department of Insurance requires a North Carolina collection agency bond from every provider of regulated collection services in the state.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/suretyone.com\/blog\/north-carolina-collection-agency-bond\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"North Carolina Collection Agency Bond\" \/>\n<meta property=\"og:description\" content=\"The Department of Insurance requires a North Carolina collection agency bond from every provider of regulated collection services in the state.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/suretyone.com\/blog\/north-carolina-collection-agency-bond\/\" \/>\n<meta property=\"og:site_name\" content=\"Surety One, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Surety1\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/Surety1\" \/>\n<meta property=\"article:published_time\" content=\"2013-05-15T03:10:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-07-19T00:18:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/collection_agency_bond.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@SuretyOne\" \/>\n<meta name=\"twitter:site\" content=\"@SuretyOne\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"C. 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