Why We Need Collection Agency Bonds
Also known as debt collector bonds, collection agency bonds are required of a collection agency before they can be issued a license. It is a type of surety bond that protects consumers from unethical actions of a collections agency.
Why do we need a Collection Agency Bond?
For credibility: Collection agencies arehigh-risk companies because they deal with sensitive information, like people’s financial details. A bond ensures that collection agencies will act responsibly with such confidential data.
To protect the public’s confidential information:If a Collection agency were to get hacked and important information leaked, it could cause great damage to many people. These bonds hold the agency accountable if information were to be misused.
To ensure ethical practices: The State requires collection bonds to ensure that agencies practice ethically and professionally in their day-to-day operations.
Making a Claim
An aggrieved party can make a claim against a collection agency bond if he or she feels that an agency has not fulfilled their duties or acted in an unethical manner. A complaint can be made for theft, fraud, discrimination,and for manipulating or overcharging customers. The claim cannot exceed the bond amount andthe claim will be fulfilled only if the bond is still active. If you do not pay against the claim, the surety company will usually investigate the claim for validity.