What You Need To Know About The Consumer Protection Bond
Have you ever thought about working as a collection agent? There are thousands of Canadians, who have unfortunately gotten themselves in substantial debt. Although the collection agency is often looked at as a menace to society, this couldn’t be further from the truth. A good collection agent will be able to help both sides of the conflict through a strategic arrangement. Still, there are some requirements, which must be met, before you’ll be able to work within this field. Acquiring the associated Consumer Protection Bond is undoubtedly one of the first steps you will take. Below, you’ll learn more, so you can move forward with haste.
What is a Collection Agency?
Collections agencies are better known to consumers as “debt collectors”, since that is their main responsibility. Many different types of businesses that have difficulty collecting payments from clients or consumers will turn to collection agencies. These agencies often set up call centers, where representatives will try to contact individuals that owe money to a specific company. If all goes well, the individual will agree to pay the debt in installments or full.
Businesses that are involved with debt collection will always be at a high risk for fraudulent behavior. When hiring thousands of employees to pursue debt payments from individuals and businesses, anything can happen. A client will always have the option of filing a claim against the agency or employee, stating that they were discriminated against. While this claim many not be valid, it can be detrimental to the collection agency. This is where a consumer protection bond will come into play.
Why Is It Required?
If you’re interested in working as a collection agent, within Canada, you can guarantee that the bond will be a requirement. Although this may not seem fair, it is something that cannot be avoided. In fact, the bonding requirement is put in place to protect both sides of the arrangement. Over the years, collection agencies have accumulated a lot of complaints and this has created a bad reputation for the entire industry. Everyone hates getting a call from a collector, but the bond can help. The bond gives the client the reassurance that the collector can be held responsible, if they behave in a devious manner or break the law.
Although the client still probably won’t want to answer your call, they’ll feel a little safer, once they know you’re fully bonded.
Protecting The Client
The client receives a great deal of protection from the bond. This is the case, because collection agencies are responsible for dealing with a lot of private, financial information. When the client hands over their financial information, they should be able to maintain their peace of mind knowing that the information will remain safe and sound. The bond helps to guarantee that this is the case and that their information will not be used for the collection agency’s benefit. If the client feels that they’ve been wronged in any shape or form, they’ll be able to file a claim against the bond.
This will help to punish the agent, while also helping to ensure that any losses are reimbursed.
How Much Will It Cost?
The majority of consumers will be tremendously concerned about the overall cost of getting bonded. This is entirely reasonable. The bad news is that the cost of the bond will vary substantially depending on a range of factors, including the bond amount, duration and personal credit. There is some good news though. By filling out our application, you will be able to obtain a quote, without any obligation. This can help to ensure that you’ll be able to obtain the lowest cost possible.
The Consumer Protection Bond is one of the most notable requirements for obtaining a Collection Agency License. This is set forth within the Collection Agencies Act of Canada. All first time applicants will need to submit a $10,000 bond, as well as the Collection Agency License Application. Other requirements will depend on the province that you business operates. In some cases, you will need to register your business with the Service New Brunswick’s Corporate Registry.
Make sure that your business is registered for each and everyone name it utilizes. Remember that your license will remain valid for twelve months, before it’ll need to be renewed. During the license renewal process, you will need to submit a bond continuation certificate, which can be acquired from your surety company.
Do Consumer Protection Bonds Expire?
All surety bonds have an expiration date, which is most often 365 days from the initial bond date. If you are planning on continuing operating a collection agency, you will need to renew the bond several weeks prior to the expiration date. Never wait until the last minute to complete the renewal process. Instead, visit the surety company in person and pay the annual premium, you may also be able to do this via the surety’s website.
When you’re ready to get bonded, you should utilize the application form. By doing so, you’ll be able to acquire the lowest cost quote in the industry! To read more about license bonds, visit, https://www.constructionbond.ca/license-bonds/
Other types of license bonds that we offer:
- Alcohol Bond – Protects the government in the event tax and fees are not paid by businesses.
- Auctioneer Bond – Protects the customer against misrepresented auctioned items.
- Bailiff Bond – Required by a bailiff before employment begins and protects victims of misconduct.
- Collection Agency Bond – Guarantees ethical use of sensitive client information by agencies.
- Direct Sellers Bond – Protects the customer that incurs damages as a result of a direct seller.
- Debt Repayment Bond – Protects customers from fraud or misconduct by debt repayment agencies
- Gas Bond – Required by gas installers or gas equipment installers before beginning work.
- Freight Broker Bond – Required by freight brokers before they can accept any orders.
- Home Inspector Bond – Required by home inspectors before conducting inspections.
- Insurance Adjuster Bond – Required by independent insurance adjusters before working.
- Immigration License Bond – Required by immigration consultants before beginning work.
- Livestock Dealer Bond – Required by dealers before buying, selling, and bidding on livestock.
- Mortgage Broker Bond – Ensurers that agents are compliant with provincial regulations and acts.
- Payday Lender Bond – Protects customers from fraud or wrong doings by payday lenders.
- Private Investigator Bond – Required by investigators & employees of the agency before working.
- Real Estate Broker Bond – May be required by realtors along with licensing.
- Telemarketing Bond – Protects customers from frauds and misconduct by telemarketers.
- Travel Agency Bond – Required by travel agencies before working with the public.