Georgia Private Child Support Collector Bond: A Comprehensive Guide
April 21, 2021
This guide provides information for insurance agents to help private child support collectors obtain Georgia Private Child Support Collector Bonds
At a Glance:
- Average Cost: Between $500 to $3,750 per year based on the applicant’s credit
- Bond Amount: $50,000
- Who Needs it: All private child support collectors operating in Georgia
- Purpose: To ensure the public will receive compensation for any damages should the private child support collector fail to comply with registration law
- Who Regulates Private Child Support Collectors in Georgia: The Georgia Secretary of State
Background
Georgia Statute 10-1-393.9 requires all private child support collectors operating in the state to register with the Secretary of State. The Georgia legislature enacted the registration laws and regulations to ensure that private child support collectors engage in ethical business practices. In order to provide financial security for the enforcement of the registration law, private child support collectors must purchase and maintain a $50,000 surety bond to be eligible for registration.
What is the Purpose of the Georgia Private Child Support Collector Bond?
Georgia requires private child support collectors to purchase a surety bond as part of the application process to obtain a business registration. The bond ensures that the public will receive compensation for financial harm if the collector fails to comply with the registration regulations. In short, the bond is a type of insurance that protects the public if the private child support collector breaks registration laws.
How Can an Insurance Agent Obtain a Georgia Private Child Support Collector Surety Bond?
BondExchange makes obtaining a Georgia Private Child Support Collector Bond easy. Simply login to your account and use our keyword search to find the “private” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Is a Credit Check Required for the Georgia Private Child SupportCollector Bond?
Surety companies will run a credit check on the owners of the private child support collection agency to determine eligibility and pricing for the Georgia Private Child Support Collector bond. Owner’s with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Georgia Private Child Support Collector Bond Cost?
The Georgia Private Child Support Collector surety bond can cost anywhere between $500 to $3,750 per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $50,000 bond requirement.
$50,000 Private Child Support Collector Bond Cost
| Credit Score | Bond Cost (1 year) |
|---|---|
| 800+ | $500 |
| 625 – 799 | $750 |
| 575 – 624 | $1,875 |
| 550 – 574 | $2,500 |
| 500 – 549 | $3,750 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
How Does Georgia Define “Private Child Support Collector?”
To paraphrase Georgia Statute 10-1-393.9, a private child support collector is any for profit business that assists parents in collecting child support.
How do Private Child Support Collectors Apply for a Registration in Georgia?
Private child support collectors in Georgia must navigate several steps to secure their registration. Below are the general guidelines, but applicants should refer to the application form for details on the process.
Step 1 – Establish a Business Location
Private child support collectors must establish a business location within the state of Georgia that complies with all zoning and building codes
Step 2 – Purchase a Surety Bond
All registration applicants must purchase and maintain a $50,000 surety bond
Step 3 – Complete the Application
All Private Collection Agency Registration Applications should be mailed to the following address:
Office of Secretary of State Corporations Division
313 West Tower, 2 Martin Luther King Jr. Drive
Atlanta, GA 30334
Private child support collectors must complete the application in its entirety.
What Are the Insurance Requirements for the Georgia Private Child Support Collector Registration?
The State of Georgia does not require private child support collectors to purchase any form of liability insurance as a prerequisite to obtaining a business registration. Private child support collectors must purchase and maintain a $50,000 surety bond.
How Do Georgia Private Child Support Collectors File Their Bond?
Private child support collectors should mail the completed bond form, including the power of attorney, to the following address:
Office of Secretary of State Corporations Division
313 West Tower
2 Martin Luther King Jr.
Atlanta, GA 30334
The private child support collector surety bond requires signatures from both the surety company that issues the bond and a representative from the private child support collection agency. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and address
What Can Georgia Private Child Support Collectors Do to Avoid Claims Against their Bond?
To avoid claims on the Private Child Support Collector Bond, collectors must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Honor all agreements made with consumers
What Other Insurance Products Can Agents Offer Private Child Support Collectors in Georgia?
Georgia does not require private child support collectors to purchase any form of liability insurance as a prerequisite to obtaining a license. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Georgia Private Child Support Collector Customers?
Georgia conveniently provides a public list of all private child support collectors in the state. The list can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
