The Arizona Department of Financial Institutions (AZDFI) requires all collection agencies operating in the state of Arizona to hold a valid license, pertinent to ARS 32-1021. The license has a surety bond requirement. The bond from Jet Insurance Company serves as a fiscal guarantee to the AZDFI that collection agencies will pay their client in the agreed upon and timely manner following a collection.
With Jet, you can quote and purchase this bond immediately online and avoid any delays or frustrations with middlemen brokers and agents.
With Jet, prices start at $100 annually or $10 monthly. Rates are dependent on the annual income of the collection agency and the personal credit of the owner. Below are the preferred rates for the four bond limits:
|Annual Income||Bond Limit||Monthly||Annual|
|$250k or less||$10,000||$10||$100|
|$750k and up||$35,000||$13||$131|
You can also get a two or three year bond with Jet and save a couple of bucks. They start at $175 and $250, respectively.
The AZDFI regulates financial enterprises and institutions to ensure the safety and robustness of the financial services industry in the state of Arizona. As part of this obligation, ARS 32-1021 legally mandates that all collection agencies operating in the state obtain a $10,000 Collection Agency Bond. The bond ensures that clients of collection agencies will be financially shielded from fraud and other dishonest acts in regards to transfer of funds collected. Basically, surety bonds give them the ability to collect from collection agencies who do not pay them contractually due amounts.
Violations include: not paying customers collected amounts per contract, committing fraud by falsifying the amount of funds to be collected from a client, lying to the debtor about money owed, or making timely payment.
Jet is here to guarantee that legal obligations are carried out, similar to your role as a collection agency. We guarantee that lawful conduction of business will be executed.
Jet’s online application process will request basic business information and social security number for a soft credit check. Fear not, as this will not affect your credit score and takes seconds.
The bond will be available for purchase immediately, and once that is done you will receive a downloadable copy of your bond and receipt.
Jet will take care of the bond filing process for you! An original signed and sealed Collection Agency Bond will be electronically filed with the AZDFI. Jet will send a copy for your own records in the mail.
If you are a collection agency utilizing the Nationwide Multistate Licensing System for your licensing, you may do so via the NMLS licensing program. Bond filing would be completed by Jet, but this requires you to approve us as the surety company in your NMLS login. Let us know when that is done and we will file the bond to them.
Should the AZDFI request any physical copy it can be mailed to the following address:
Arizona Department of Financial Institutions
100 N 15th Ave, Suite 261
Phoenix, AZ 85007
Yes, the bond can be cancelled, with a simple written request to Jet via email or mail. Jet can cancel the bond and be relieved of liability after a 30 day period with the AZDFI. Any unearned premium will be calculated by Jet at the point of release, and a refund will be provided. The same deal applies to monthly payment subscribers as Jet will have to wait 30 days before stopping the auto-withdrawal.
Not if you select the monthly payment option with Jet! So long as small automatic payments happen the bond stays active. If your business’ annual income changes to the point where you need a different bond limit. Just give us a call or email and we can update immediately and send notice to the AZDFI.
If you are on annual terms Jet will notify you regarding the renewal of your Collection Agency Bond via email and mail. If a new bond limit is determined, confirm the new required bonding amount with Jet to receive a revised renewal rate. All Jet will need is payment to renew your bond, no additional paperwork and as always you will get a copy of the updated bond and receipt of purchase.
Collection agencies are legally required to perform their duties pursuant to ARS 32-1051, and should be aware of the rules and regulations before conducting business. To save time, Jet has summarized the most important points below:
Licensed collection agencies shall:
Violations of lawful duties include:
Any client that suffers fiscal damage as a result of a collection agency violating licensure laws can file a complaint to the AZDFI. The AZDFI may investigate the complaint and impose disciplinary action against the collection agency.
Claims may be filed against a collection agency bond up to three years from a specific violation. When a collection agency makes a collection and they must pay their client the agreed upon amount, less their commission. The payment must be made 30 days after the last day of the month the collection was made. For example, a collection made on March 5th must be forwarded to the original debtee on April 30th.
If the collection agency doesn’t make timely or complete payment, their client can place a claim on the surety bond.
Upon receiving a claim notice on your bond, immediately reach out to and provide all relevant information about your case to Jet, and an investigation will be conducted on your behalf. Jet will defend our customers against fraudulent charges.
If the claim is validated, payment will be provided by Jet to those who have been financially injured, up to the maximum limit of the bond as is our duty as the surety carrier. The collection agency is still responsible for their actions (or lack of action) and must repay the surety company for claims that have been paid out. In an interesting twist of fate the collection agency now must be collected on, but have no fear as we will often opt to utilize a fearsome collection agency.