A collection agency bond is required by the State of New Jersey as a prerequisite to legally operate a collection agency in New Jersey.
A collection agency bond is required by the State of New Jersey as a prerequisite to legally operate a collection agency, collection bureau, or collection office in New Jersey. The bond is also required for any person who wants to engage in the business of collecting or receiving payment for others of any account, bill, or other indebtedness.
The bond guarantees that the collection agency shall, upon written demand, pay and turn over the proceeds for any account, bill, or other indebtedness taken for collection in accordance with the terms of the agreement upon which such account, bill, or other indebtedness was received for collection while complying with all laws and regulations applicable to the bonded collection agency’s action at issue.
Collection agencies, collection bureaus, and collection offices are required by State of New Jersey statutes to obtain a bond in order to legally operate in New Jersey. Also, no person who engages in the business of collecting or receiving payment for others of any account, bill, or other indebtedness can legally operate without obtaining a bond.
A $5,000 surety bond is required by the State of New Jersey from a surety company authorized to conduct business in New Jersey.
Colonial offers the direct and digital way to obtain a New Jersey collection agency bond. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are simple — get a quote online, fill out your information, and enter your payment method. Print your bond from your home or office. It’s that simple!
A New Jersey collection agency bond is reasonably priced and easy to obtain. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the applicable government agency.
It is important to understand how surety bonds work and who is the insurance company issuing your bonds. It is easy to obtain a New Jersey collection agency bond when you deal directly with a quality insurance company licensed to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.