Connecticut Collection Agency Bonds
Connecticut Collection Agency Bond Information
A $25,000 Collection Agency Bond is required by the Connecticut Banking Commissioner to protect consumers against the possibility that the agency acts in an illegal or unethical manner. Because collection agencies are involved in handling sensitive personal financial matters on a daily basis, these bonds are considered higher-risk obligations and require a credit check.
What Does a Collection Agency Bond Protect Against?
The bond requires that the agency shall faithfully account for all funds entrusted, collected and received in the capacity as a consumer collection agency. Any person who may be damaged by the wrongful conversion of any creditor, consumer debtor or property tax debtor funds held by the principal, may file a claim against the bond to recover damages.
The surety has the right to cancel the bond at any time by a written notice to the obligee, stating the date cancellation shall take effect. Such notice shall be sent by certified mail to the obligee at least thirty (30) days prior to the date of cancellation.