All debt collectors in the state of North Dakota have a new requirement to meet in order to stay legal with the state. A new bill titled HB 1080 attaches a new $25,000 net worth requirement to the present legislation regulating debt collection agencies which already requires a $20,000 surety bond. Depending on whether the Commissioner of Financial Institutions has to appoint a receiver to collect the assets and liquidate the company as a result of the debt collector going bankrupt, HB 1080 states that the practical and essential costs of the receivership will be the first claim on the surety bond. The $20,000 surety bond that a collector must have in place will cover a claim up to $20,000.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.