A New York bill that was recently enacted will require a surety bond of debt collectors.
Details on the New Requirement
The new bill requires a license and bond for consumer debt collectors in a form prescribed by the superintendent in the sum of $25,000.
The “bond shall be for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the consumer debt collector to remit money collected on account and owed to the creditor,” and “shall also be for the benefit of consumer debtors who obtain judgment from a court of competent jurisdiction based on a violation by the consumer debt collector of the federal Fair Debt Collection Practice Act or any other New York law or federal law which is applicable to the consumer debt collector.”
How to Apply for a Surety Bond
If you find that you must obtain this surety bond, you’ll need to contact a bond provider who is licensed to to business in New York. JW Surety Bonds is licensed nationwide, so please apply for a free quote online, or feel free to reach out to us if you’d like assistance with obtaining this bond.