Archive for October, 2013

Industry Specific Surety Permit Bonds – Telemarketing Bonds

Written by JoAnn Smith on October 30th, 2013. Posted in Commercial Bonds, License and Permit Bonds, Surety Bond Blog

     telemarketing bonds
telemarketing bonds are changing
Many industries require specific surety bonds as part of the licensing procedure, often commonly referred to as a permit bond or license bond. For different industries the surety bond might have different reasons to exist, but they all have a central purpose. This is to ensure that the business that is getting the license adheres to the requirements of the permit or license. In telemarketing, because there are such strict rules regarding behavior and customer interaction, a telemarketing bond is a requirement to run this type of business, regardless of the location. Call centers are the most likely candidates for this type of surety bond requirement.

Do I Need a Telemarketing Bond?

Since every state has different laws regarding the regulation of call centers, it is important for anyone who is considering opening a call center to find out what the rules and regulations are for your individual state. Most of the laws regarding call centers will stipulate that a surety bond or other form of surety be submitted. Because the rules regarding the telemarketing bond requirements for a call center will usually be related to several specifics it is important to first establish the following:
  • The kinds of goods and/or services that your call center will be offering
  • If the call center has manual calling or is on an autodialer system
  • Do the call lists come from “opt in” lists or are they cold calls
  • Are any kind of financial transactions going to take place during the calls
The telemarketing bond that is connected to the call center license must be a new and separate one for each individual state that you will contact from the center. This is why it is important to establish these answers for each state your call center will be calling. Remember- each individual state that is called from a telemarketing center will need to be licensed and have a telemarketing bond in place for that state.

Do Not Call Lists

Another important aspect of the telemarketing bond is each individual state’s Do Not Call List. The telemarketing bond will often be part of the agreement to adhere to the state’s list stipulations and penalties. Every state that a telemarketing center calls must have a license, telemarketing bond and adhere to that state’s Do Not Call List.

A Statement of Trust

Since a telemarketing bond is in essence a statement that the individual telemarketing company is trustworthy it is important to comply with the rules and regulations for these bonds. In addition, showing that the company is proud of being bonded can be a way for the company to let the general public know they are a solid and trustworthy company to do business with. Surety bonds, in particular a telemarketing bond, can become a great marketing tool to get past the public perception of fly-by-night telemarketing.

Finding Telemarketing Bonds

If you are unsure if you need a telemarketing bond for you business, or simply want to learn more, we can help. We have been providing surety bonds to a wide variety of businesses for many years, and we can help your business to find the right surety bond for your needs. The telemarketing business is changing, like many businesses in this new internet age. Be sure that your company has the correct kind and amount of telemarketing bond for its state license before you begin business. Get the right information quickly and easily with BuySurety.

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Surety Bond Legislature Updates: Auto Dealerships

Written by JoAnn Smith on October 28th, 2013. Posted in Arkansas, California, Commercial Bonds, Indiana, Latest News, Legislation, License and Permit Bonds, Missouri, Motor Vehicle Bonds, Nevada, Oklahoma, Surety Bond Blog, Wisconsin

     surety bond legislature
Legislative Changes affected MVD Bonds this year
There was actually quite a bit of surety bond legislature this year in the various states regarding surety bonds for auto dealerships. Amongst the states looking to make changes to the requirements for auto dealer bonds are California, Wisconsin, Arkansas, Indiana and Oklahoma. There were several changes proposed in Missouri including both changes to the surety bond amounts and exactly which types of vehicle dealerships would require them, but both bills did not pass and are now dead in the water. Nevada did not make substantial changes but did pass a bill clarifying requirements for surety bonds provide consumers and not dealers with protection. Here are some details on bills either in process or passed recently: California – As of the end of September in 2013, a bill was still in the process of being passed that would now require dealers of such recreational off-highway vehicles as ATVs to be licensed and post a surety bond, although not in the same amounts as the current requirements for auto dealerships. Wisconsin – If AB 262 passes, the amount of a required MVD surety bond would increase from $25,000 to $50,000. Arkansas – While the bill is still in legislature, it looks very likely that dealers who sell recreational vehicles including both low-speed and ATVs will be required to be both licensed and bonded. Indiana – While the legislative bill eliminated the requirement of auto distributor branches to each have their own license and bonding, they will now require licenses and surety bonds for transfer dealers, wholesale dealers and automotive mobility dealers. Oklahoma – Used motor vehicle bonds have been increased from $15,000 to $25,000. But it isn’t all bad news, as the $1,000 surety bond that had been required of all motor vehicle sales representatives is now repealed. If you have any questions about these new surety bond requirements for auto dealers, be sure to give us a call and talk to one of our knowledgeable customer support staff at BuySurety. We have the MVD surety bonds you need at a price you can afford, and always are happy to help you stay current on all your surety bond requirements.

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Car Dealer Bond Requirements for Louisiana, Mississippi and Alabama

Written by JoAnn Smith on October 26th, 2013. Posted in Alabama, License and Permit Bonds, Lousiana, Mississippi, Motor Vehicle Bonds, Surety Bond Blog

     car dealer bond
car dealer bond requirements are changing
The Deep South has a long love affair with vehicles, road trips through sun-splashed countryside and white jacketed car dealers offering you great cars at rock bottom prices. Whether you are offering recreational vehicles or practical cars and trucks, a car dealer bond is going to be an important part of your trade. Knowing the requirements for DMV bonds when selling in Louisiana, Mississippi and Alabama will let your good old boys make those deals all the more easily.

Louisiana Car Dealer Bonds

Located between the giant plains of Texas and the old south plantations of Mississippi, Louisiana has plenty of great opportunities for anyone looking to establish a car dealership. The requirements for a car dealer bond as part of your licensing are very straight-forward. If you wish to open a new or used car dealership in Louisiana you will also need to post a $20,000 car dealer bond. The bonds are good for that year and will expire on December 31st, when they will need to be renewed. The Baton Rouge DMV offices handle the car dealer bonds for all of the state.

Mississippi Car Dealer Bond Requirements

Anyone who has driven down a country road in Mississippi in spring knows why it is called The Magnolia State. The sweet smell of magnolia blossoms through the open window of your car can banish any gloom. In Mississippi you will need to post surety bonds for both the dealership and each agent. If you are planning to sell new vehicles you will need to post an auto dealer bond for $25,000. In addition, each agent or salesperson you employ at the dealership will need to have a $15,000 car salesperson bond as well. Only dealerships that sell new cars need to have individual surety bonds for their salespeople, used car lots can have their salespeople bonded under the dealer bond.

Alabama Car Dealership Surety Bonds

The Old South still lives in Alabama, where you will continue to see the old Confederate flag fly at many businesses. Small businesses abound, which may be why Alabama actually requires licensing and surety bonds for anyone who sells more than just five vehicles. The car dealer bonds that are required for this license only run until September 30th of any given year, when they expire and must be renewed. The licensing and car bond requirements are split along several different categories:
  • New Motor Vehicle Dealers – $25,000 car dealer bond
  • Used Motor Vehicle Dealers* – $10,000 car dealer bond
  • Automotive Parts Recyclers and Auto Dismantlers – $10,000 car dealer bond
*Used car dealers in Alabama include anyone who reconditions, rebuilds or sells wholesale.

Offering a Good Deal on Car Dealership Bonds

No matter where you live in the south, or any other part of the U.S., it is simply a part of business when you open a car dealership that you will need to have car dealer bonds too. Although the requirements vary from state to state, BuySurety can take care of all your auto dealer bond needs regardless of your situation, location or credit standing.

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Legislative Update: New License Bond Requirements for Lenders and Mortgage Servicers

Written by JoAnn Smith on October 24th, 2013. Posted in Connecticut, Latest News, Legislation, License and Permit Bonds, Montana, Ohio, Surety Bond Blog

     license bond
license bond legislature moving forward
With legislature back in business, you can expect to see some changes going through at the national level, but what about state legislative changes? One of the areas where we see more legislative change going through is when it comes to how money is lent, particularly when it comes to mortgages. So, it isn’t that surprising, with the home market finally looking like it might recover, to see some new license bond requirements for those who service mortgages. But with the economy still struggling, new businesses such as deferred deposit lenders, also known as payday loans, are being more tightly regulated. Here are the updates for those.

Deferred Deposit Lenders and License Bond Requirements

In Montana, if you run a deferred deposit business, commonly referred to as “payday loans” since most people who use them are borrowing against their next paycheck, you now need a license bond. In fact, you will now need a $10,000 license bond for each location, a smart move since these seem to pop up in multiple locations in many cities. Although in the past the license bonds were required to cover damages to clients for actions taken by the businesses, this new law will also cover civil penalties and restitution ordered by the court.

Mortgage Servicers Will Need Surety Bonds

A new law has been passed that will required mortgage servicers in Connecticut to now post a $10,000 license bond that will cover the business and all of its branch offices. The license bond will be to cover all actions and funds received by the mortgage service office and to ensure that the office performs in accordance to the laws of Connecticut. Direct action on the bond will be permitted and the bond’s liability cannot be more than its penal sum. Ohio is also looking at enacting requirement for a license bond for mortgage servers. However Ohio is considering a requirement of a $250,000 license bond for the first location and a $10,000 bond for each separate location.

Offering License Bonds at Reasonable Rates

If your business is required to have a license bond, do you have a reliable service that can offer you one at a reasonable rate? BuySurety has been in the business of offering surety bonds at reasonable rates since 1998. We can work with your company to help you get bonded for exactly the kind of surety bond you need or are required to carry, and for a great rate. Even if your credit rating is poor, we can help. So why not contact BuySurety today and find out just how easy it is to qualify and receive the right surety bond at the best possible price, no matter what your credit rating or how long you have been in business.

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Surety Bond Legislative Update: Financial Industries

Written by JoAnn Smith on October 22nd, 2013. Posted in Connecticut, Illinois, Latest News, Legislation, License and Permit Bonds, Massachusetts, North Carolina, Pennsylvania, Surety Bond Blog

     surety bonds, financial surety bonds, legislative changes
Surety bonds in financial business Inspire trust
Although many states continue to be on hiatus, there are several state legislatures that are open for business and making legal changes to surety bond requirements. Several changes have been made that will be affecting various businesses that deal with finances, whether it is mortgage loan originators, sales finance companies or money transmitters. Here is the latest update on changes regarding surety bond requirements for Illinois, North Carolina, Pennsylvania, Connecticut and Massachusetts:

Mortgage Loan Originators

In Illinois the Governor has signed off on a bill that will now require mortgage loan originators that are registered with the Nationwide Mortgage Licensing System to be bonded if they are not now required to do so. The blanket permit and licensing bond would be posted by institution they were registered with and would cover them the same as the currently bonded mortgage originators are now. A bill is currently in legislature in North Carolina that will require the registration of any “transitional mortgage originator” that is licensed outside the state and will be doing business in North Carolina for no longer than 120 days. As part of the licensing, a surety bond that is equal to the current surety bond requirements for a mortgage originator will be required.

Pennsylvania Motor Vehicle Sales Finance

The Senate Appropriations Committee is currently reviewing possible changes to the surety bond requirements for a sales finance company or collector/re-possessor when it comes to motor vehicles. The current licensing surety bond amount is $5,000 but this amount will go up to $10,000 for a permit surety bond when passed. The bill has already passed the House and gone through one committee.

Connecticut and Massachusetts Money Transmitters

For money transmitters that handle foreign deposits, changes are being made in Massachusetts regarding the posting of money transmitter bonds. With the passage of HB 876, money transmitters that deal with foreign deposits will be required to post a $50,000 money transmitter surety bond plus additional $10,000 bonds for each additional location. The bond amount will be capped at $450,000. Meanwhile, in Connecticut the requirements regarding surety bonds for money transmitters have been changed. The statute of limitations for claiming on a surety bond has been changed from a two year tail to a two year limitation. If your company needs surety bonds for any reason, you can be sure that BuySurety has the right surety bonds at the right price. Hard to finance? Poor credit risk? Call our helpful customer service line today and find out just how easy we can make it for you to have the surety bonds your business requires at a price you can afford.

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