A question we hear on a regular basis regarding collections in New York City is, “Is there a surety bond requirement that accompanies the license requirement?” The broad answer is “yes” – there is a debt collection bond requirement in NYC.
But there is a huge caveat.
The bond is only required for agencies that perform collections on child support payments. New York City Administrative Code Section 20-489 states the following:
As a condition to the issuance of a license to provide child
support payment debt collection services, each applicant shall furnish
to the commissioner a surety bond in the sum of five thousand dollars,
payable to the city of New York, executed by such applicant and a surety
approved by the commissioner.
The statute goes on to say that the bond can be increased up to $25,000 at the commissioner’s request.
Do you have any questions about surety bonds? Interested in letting Cornerstone manage your bonds? Contact Joel Blackburn today at 770-587-4595 for answers to bond questions and quotes on any bonds you may need.