Skip to content
Search
Client portal (opens in a new tab)Call 1-800-777-1TSAGet started

Arkansas bonds

Arkansas — Collection Agency Bond

Arkansas collection agency bonding depends on the number of collectors and the location being licensed. The Board's current instructions call for $10,000 for up to five collectors, $20,000 for six to twelve, and $25,000 for thirteen or more. Match the agency's physical address and collector count before ordering.

Purchase Now (opens in a new tab)Call 1-800-777-1TSA

Continue to our secure checkout partner, Propeller (opens in a new tab).

Recorded state
Arkansas
Category
Financial services

What this bond does

The bond is licensing security payable to the Arkansas State Board of Collection Agencies. The Board's rules provide a bond claim process when a licensed agency fails to pay its clients money collected on their behalf. Buying the bond is separate from obtaining or renewing the agency's license.

Who needs it
Collection agencies applying for or maintaining Arkansas licensure. The Board says agencies located in Arkansas or contacting Arkansas debtors need licensing, subject to the statutory exemptions. Its rules require a separate license and bond for each office or location; do not assume one location's purchase covers every branch.
Who it protects
The Board's unpaid-client process protects clients whose collected money has not been remitted. Claims are documented and reviewed through the Board, with proportionate distribution if the bond cannot pay every approved claim. The surety's aggregate liability cannot exceed the bond amount; the bond is not a guarantee that every collection complaint will be paid.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details

Use the collector count for the location being licensed. The Board's application instructions and Rule 2-1 set the $10,000, $20,000 and $25,000 bands. Section 17-24-306 authorizes the Board to require between $10,000 and $50,000 for each location, so a statutory maximum is not a reason to select a different sum from the Board's actual instructions.

The current licensing forms page directs applicants to the Enterprise Licensing & Permitting portal. Complete the bond before the license application reaches its upload step. The bond must show the agency's physical address, carry its representative's signature and have a power of attorney attached. The Board also accepts a carrier's own form containing the required information. Manager registration and the agency's organizational information remain separate application requirements.

Client remittances are due by the last day of the calendar month following collection under Rule 3-1. When the Board finds an agency has failed to pay its clients and claims its bond, Rule 4-3 provides notice to interested parties, a 90-day claim filing period following that notice, and a hearing after the period ends. That is not a promise of payment within 90 days of a client's loss.

The surety may cancel by giving the Board 30 days' notice under section 17-24-306; its release concerns breaches after the effective cancellation date. The rules also terminate an agency's license when its bond is not renewed or is cancelled. Keep the bond current and handle the separate June 30 license renewal through the Board rather than assuming a purchase renews the license.

Purchase Now opens Propeller's Arkansas collection agency application in a new tab. Bring the licensed legal name, physical office address, collector count, required sum and effective date. Match the completed bond and surety execution to the Board's current requirements, then upload the bond through the Board's application process. Checkout alone does not register employees, approve a manager or issue the agency license.

Sources

Have these ready

  1. Identify the exact legal agency and the physical location being licensed.
  2. Confirm the collector count and the Board's applicable security amount.
  3. Have the agency representative sign and attach the surety's power of attorney.
  4. Prepare the separate manager registration and organizational information.
  5. Upload the completed bond in the Board's ELP application and track June 30 renewal.

Questions about this bond

Does every agency need a $10,000 bond?

The current instructions use $10,000 for zero to five collectors, $20,000 for six to twelve, and $25,000 for thirteen or more. Separate offices require separate licenses and bonds. Use the Board's direction for the location and headcount rather than treating the lowest band as universal.

Can one bond cover all of my offices?

Rule 2-1 requires a separate license and surety bond for each office or location. Match the physical address on the bond to the location being licensed and confirm the required sum with the Board.

When do unpaid clients file claims?

The Board's rules provide a 90-day filing period following its notice in the bond collection process. Claims need an itemized amount and supporting information. The Board then holds a hearing and may distribute insufficient proceeds proportionately among approved claims.

Related bonds

Keep exploring

How can we help you get started?

Choose the quote that fits, and we’ll take it from there.

Business insurance quoteFor owners and their teamsPersonal insurance quoteFor your family and home

Have a question? Contact us