Nevada Collection Agency Bond

Nevada Collection Agency Bond

The Nevada Collection Agency Bond is a licensing requirement for collection agencies applying for or renewing a collection agency license with the Nevada Financial Institutions Division (FID). The purpose of the bond is to protect Nevada constituents including customers of the collection agency (lenders) and debtors. The bond amount ranges from a minimum of $35,000 to a maximum of $60,000, and is based on the average monthly balance of the collection agent’s trust account.

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Jet offers the lowest rates for the Nevada Collection Agency Bond direct to collection agency businesses. We cut out the middleman (insurance agents) and their high commissions to offer you the best rates, but maybe more importantly, saves you time.

What Is the Lowest Price for the Nevada Collection Agency Bond?

Jet’s price on the $35,000 Nevada Collection Agency Bond starts at just $13 a month or $131 if you pay up front. Below is our preferred pricing for collection agents with good credit and experience:

Avg. Monthly Trust BalanceBond AmountMonthlyAnnual
Less than $100k$35,000$13$131
$100-150k$40,000$15$150
$150-200k$50,000$19$188
More than $200k$60,000$23$225
Nevada Collection Agency Bond Cost

Pay monthly with Jet and your bond stays active as long as you need it. If you need to cancel the bond for any reason, just let us know and we’ll stop your payments.

Why Is the Nevada Collection Agency Bond Required?

The Nevada Financial Institutions Division is tasked with regulating collection agencies in the state. Nevada State Legislature Revised State NRS Chapter 649 sets the rules and regulations that collection agencies must follow to avoid scrutiny from the FID Commissioner. As a tool for the Commissioner to enforce the rules, the Nevada Collection Agency Bond provides financial compensation to the state, lenders employing collection agency services, and debtors subject to collection agency practices, if collection agencies act fraudulently or breaks license law.

All businesses meeting the definition of collection agency must obtain a license from the state. The definition includes any person attempting to collect a debt owed for the benefit of another business or person. There are a few exceptions to this rule, including banks, property managers and attorneys who are exempt.

Collection agencies that do not collect for businesses located in Nevada, but attempt to collect debts from Nevada residents, are considered Foreign Collection Agencies. While exempt from the licensing requirements, Foreign Collection Agencies still must post a Nevada Foreign Collection Agency bond in the same amounts as resident agencies.

How to Apply for the Nevada Collection Agency Bond With Jet

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Jet’s application for the Nevada Collection Agency Bond just takes a minute. Enter your business information and ownership details and you’ll have your price in an instant. Your rate is based on your personal credit, but the credit check is painless and won’t affect your credit.

Jet’s price includes a monthly subscription option that makes paying for your bond automatic and easy. The Nevada Collection Agency Bond starts as low as $18 a month. We never charge fees or interest and you can cancel any time. 

After you purchase your bond, you can download a copy for your records. We will also email you the original bond with a raised seal. You will need to sign and file the original with the Nevada Financial Institutions Division.

How is the Nevada Collection Agency Bond Filed?

The Nevada Financial Institutions Division requires collection agencies to file an original bond. When you purchase your bond with Jet, we will provide you with a copy immediately for your records and mail you the original bond with a raised seal. Once received, you will need to sign and date the bond as the “Principal”. 

The original bond should be mailed to FID’s Carson City address below:

Nevada Financial Institutions Division
Attn: Application Processing
1830 College Pkwy, Ste 100
Carson City, NV 89706

Can I Cancel My Nevada Collection Agency Bond?

Yes, you can cancel your bond with Jet any time and for any reason. If you pay monthly, just let us know and we’ll stop your payments. If you pay up front, we’ll return any unused portion of your bond premium to you. 

The Nevada FID requires that we provide a 30-day notice before the cancellation takes effect. We’ll send the notice out as soon as you request cancellation, and your payment will be prorated accordingly.

Our no hassle cancellation refunds seem like the right thing to do, but most of our competitors take a different approach and consider your payment “fully earned” upon receipt. If you decide to go with another bond company (how could you?!)... check the fine print.

How to Renew the Nevada Collection Agency Bond

Collection Agents must renew their license with the Financial Institutions Division by June 1st of each year. However, the Nevada Collection Agency Bond is continuous, meaning that the bond stays on file with the FID until the surety company cancels the bond. With Jet, as long as you continue to pay your automatic monthly payment, your bond will stay active and nothing needs to be sent to the FID for the bond. 

If you paid for your bond up front, we will send you reminders to renew by email and mail with plenty of time to make a payment. Once you pay, your bond will renew and stay active with the Division.

What Important Dates Do Nevada Collection Agencies Need to Remember?

For your surety bond, Jet will make sure you stay in compliance as long as you keep paying your bill. We will reach out to you several times if you miss a payment to make sure your bond stays active. For the Nevada Collection Agency license, there are several important dates to keep track each year as follows:

How Can Collection Agents in Nevada Avoid Bond Claims?

The short answer? Follow all rules and regulations set forth in NRS Chapter 649. In practice, the best way to avoid claims is to familiarize yourself with the rules and follow them to a “T”. Most collection agents in Nevada run into trouble relating to the CPA and Attorney General assessment fees due each year to the state. When these fees are unpaid or late, the Commissioner will submit a claim to the Surety for payment. Ultimately, the fees and any bond claims are the responsibility of the collection agency, so it is important to pay the FID on time to avoid penalties and license suspension or revocation.

Less commonly, bond claims can arise due to problems with customers of the collection agency (lenders) or their debtors. For your lender customers, make sure to meet all the obligations of your collection agreements, remit collections in a timely manner to the customer, and keep contract language within the rules set forth by NRS 649.334. When it comes to collection practices, follow all of the rules of Nevada including verification of debt (NRS 649.332) and  record keeping (NRS 649.335). Furthermore, collection agencies are subject to federal debt collection practices defined by the Fair Debt Collection Practices Act. 

What Happens if I Get a Nevada Collection Agency Bond Claim?

Jet will defend you whenever possible if we receive a bond claim. The process will vary some depending on who is submitting the claim, and importantly, on how you respond. 

If the Commissioner of the FID submits a claim to Jet, we have no choice but to pay the Commissioner within 30 days of receipt. We will reach out to you with the information about the claim and ask that you handle the issue (usually a fee payment) before we have to step in. If Jet must pay the claim, we will seek reimbursement from you as the bond principal. For surety bonds, this concept is known as indemnification. Ultimately, violations that lead to claims are illegal acts and are therefore the responsibility of your business.

If a customer or debtor submits a claim directly to Jet, we will take the following steps to defend your business:

Finally, if a customer or debtors wins a judgment against your business that is covered by the bond, Jet will pay the claim within 30 days and seek your reimbursement.

In all of the above scenarios, Jet will reach out to you and stay in constant communication. We hope to resolve any instances involving your bond before they cause any issues with your license. We are your advocate and share similar financial responsibility when it comes to your bond.

Are There Other Bonds That a Nevada Collection Agency Needs?

The short answer? Follow all rules and regulations set forth in NRS Chapter 649. In practice, the best way to avoid claims is to familiarize yourself with

Nevada Financial Institutions Division requires surety bonds for a few other related businesses. Most commonly, collection agents may have similar services or business related to the following:

Collection agents that offer services in other states may need a bond for that state as well. Jet offers this bond for each state we are licensed in.

Nevada Collection Agency Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: