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Texas Telemarketing Bonds
The Secretary of State’s office regulates solicitation organizations (also known as telemarketers), among other business licenses, to ensure that residents of the State of Texas are not taken advantage of and their general welfare is cared for. Public safety organizations, independent promoters, public safety publication solicitors, telephone solicitors, and veterans organization solicitors, specifically, must obtain a license from the Secretary of State’s Registration Unit, as well as file an appropriate surety bond.
Jet Insurance Company provides various Texas Telemarketing Bonds to assure the Secretary of State that the solicitation business will follow the regulations of its license, as well as all applicable state and local laws. The surety bond will act as a form of financial restitution to Texas citizens if they face financial damages at the hands of a solicitor’s transgressions.
Which Texas Solicitor Bond Do I Need? What Is the Cost?
Depending on the nature or classification of your solicitation business, you will require one of the following surety bonds upon the annual registration of your business or organization:
- $10,000 Telemarketing Bond
- $10,000 Public Safety Solicitation (PSO), Independent Promoter, or Public Safety Publication Solicitor Bond
- Veterans Organization Solicitor Bond (custom bond amount)
- Veterans Organization Solicitation Bond (custom bond amount)
As you can see, the Veterans Solicitation Organization Bond and the Veterans Organization Solicitor Bond have custom bond limits. According to Title 11, Sec. 1804.101 of the Texas Occupations Code, the bond limit is based on the type of organization and the number of countries they solicit in. If the company is chartered by the United States Congress, a bond limit of $1,000 is all that is required. If not, then the following requirements apply:
- A $5,000 bond limit is required if the organization solicits in no more than one country
- If the organization solicits in more than one country but fewer than six, a $10,000 bond amount is required
- A $25,000 bond limit is mandated if the organization solicits in more than five countries
At Jet, you may purchase the $10,000 Telemarketing Bond or the PSO, Promoters, and Publications Solicitor Bond for the price of $150 guaranteed. Simply select the “View Your Bond Price” button above to get started!
| Bond Term | Bond Limit | Cost |
|---|---|---|
| PSO, Promoters, and Publications Solicitor Bond | $10,000 | $150 |
| Telephone Solicitor Bond | $10,000 | $150 |
As for theVeterans Solicitation Organization Bond and the Veterans Organization Solicitor Bond, Jets prices are a small percentage of the custom bond limit and are based on a soft credit check of the applicant. Take a look at the chart below to view our starting rates.
| Bond Limit | Cost |
|---|---|
| $1,000 | $100 |
| $5,000 | $100 |
| $10,000 | $150 |
| $25,000 | $375 |
The Texas Solicitation Organizations Bond Process With Jet
Applications for any of the various Telemarketing Bonds are completely online and can be completed in just a few minutes. To begin, select which surety bond you are in need of. The application will then ask for your contact details and social security number for a soft credit check (if applicable). Once you have submitted your completed application to Jet, you will receive price options right away via the email address of your choice. Simply fulfill the payment due and our team will send you a copy of your receipt and the bond form immediately.
Jet can file your surety bond for you at no extra charge! However, if you would prefer to take care of this step yourself, the option to do so may be selected during the checkout process.
Original signed and sealed bond forms must be submitted to the Texas Secretary of State’s Registration Unit at the mailing address listed below. Registration forms and other licensure documents can be found on the State’s Public Filings and Other Forms webpage.
Texas Secretary of State
Registration Unit
PO Box 13550
Austin, TX 78711
To maintain your business license as a solicitation organization, your bond will need to remain active during the entire duration of you doing business. So when your annual license renewal comes around, you will likely need to renew your bond with Jet as well.
No need to worry though! A Jet team member will send you a renewal invoice for your bond prior to its official expiration date via mail and email. To renew, all you need to do is complete the standard payment due.
You may cancel your surety bond with Jet at any time. We just need you to send us a written cancellation request to [email protected] and we’ll get started with the process. A termination notice regarding your bond will then be sent to the Texas Secretary of State’s office, and once accepted, the liability of your bond will be released within a 90-day period.
How Does a Professional Solicitor Business Avoid Texas Bond Claims?
Avoiding surety bond claims is simple as long as you follow the terms of your business license. Details regarding these regulations can be found in Texas Statutes: Business and Commerce Code, Title 10 and Occupations Code, Title 11. Performing your business as a solicitor earnestly always helps too. Failure to comply with these rules may result in a loss of license, large penalty charges, civil action, and/or a bond claim.
Claims on the various Telemarketing Bonds typically occur if a customer has suffered a financial loss due to the licensee misrepresenting a solicited service or good, and/or committing fraud. If any of these scenarios occur, the damaged party can choose to file an official consumer complaint with the Attorney General’s office. In cases where the complaint is found to be valid, the Attorney General will likely pursue business penalty charges and recommend the claimant to take civil action. Once civil action has been taken, it will be up to a Texas judge to determine if the charges are justified and if the solicitation business owner’s surety bond should be used as restitution. If the bond is tapped by the court to cover the losses incurred by the claimant, the bond payout may be no more than the bond limit and will also cover the damaged party’s attorney fees.
Upon receiving an official claim notice from a Texas court, immediately contact Jet with all available information regarding your court case and claim. Our team will need these details for our own review and investigation of the alleged violation.
As for claims that are proven to be valid, Jet is legally obligated to pay out the claim amount due. You, the solicitor or solicitation business owner, are responsible for your actions and will be required to reimburse Jet for the full claim payout amount. Failure to fulfill this requirement can lead to future difficulties in obtaining a surety bond in the State of Texas, specifically the bonds that are needed for your registration as a solicitation organization.
