Expert Debt Collector Bond Tips
The State of California requires that all finance lenders & debt collectors maintain a California Finance Lenders Surety Bond. Specifically, this is known as an Orange County debt collector bond.
Who is Required to Secure this Debt Collector Bond
To obtain a California Finance Lender license, all applicants must post and maintain a surety bond in the amount of $25,000 (as per California Financial Code Section 22112). Furthermore, the state requires this bond as a condition for individuals engaged in the business of providing consumer or commercial loans. Additionally, the finance lender must always maintain a net worth of $25,000.
California Finance Lender and Debt Collector Bond Requirement Specifics
The State of California mandates the California Finance Lender and Debt Collector Bond for the purpose of recovering expenses, fines, and fees. These are imposed by the commissioner in accordance with this division. Additionally, the bond serves to compensate borrowers or consumers for losses or damages resulting from a licensee’s failure to comply with the requirements of this division.