The state of Connecticut requires various business types to post surety bonds in order to protect their customers. Auto dealers, motor vehicle leasing/rental companies, mortgage brokers, and collection agencies are just a few of the professionals who must be bonded in CT.
While liability amounts are fixed for most bonds, there are some that vary. For example, the size of mortgage broker bonds is tied to the number of loans the broker originated. There are also hundreds of bonds required by cities and townships in Connecticut, in addition to state-mandated bonds.
To make sure you are in compliance with CT bonding regulations, talk to NNA Surety Bonds. We have been providing affordable surety bond solutions to companies and individuals across the United States since 1957.
The Connecticut Department of Banking requires you to post a $25,000 surety bond for each business location when applying for a license as a consumer collection agency. Signing the bond agreement means you agree to responsibly handle all funds collected and received, and the bond gives wronged consumers a way to be compensated through a claims process. Your cost for this license bond starts at $250, based on good personal credit.
As a loan originator in the state of Connecticut, you must post a surety bond to protect your clients in case they are harmed financially by your failure to follow state regulations. The bond coverage amount will vary with your brokerage’s loan origination volume.
|Loan Origination Volume||Bond Amount Required|
|Less than $30 million||$50,000|
|$30 million to less than $50 million||$100,000|
|$50 million or more||$150,000|
The premium for this coverage is a small percentage of the bond amount, with factors such as your personal credit score and business financial history and liquidity determining the annual fee you pay.
Connecticut used and new car dealers must post a $50,000 surety bond to the Department of Motor Vehicles along with their business license application. This bond shields consumers, the state, and other dealers with whom you do business from financial loss resulting from possible unethical or illegal practices by your dealership. Premiums start at $500.
If your company is engaged in leasing or renting motor vehicles for periods of 30 days or more, you most include a $10,000 surety bond with your license application to the Department of Motor Vehicles. In the event that a consumer makes a claim of wrongdoing against your business and the claim is upheld, the surety will pay the claim up to the bond’s coverage amount, which you must then pay back in full.
Your cost for the CT motor vehicle leasing or rental bond is just $100.
|Bond Name||Coverage Amount||Cost
|Consumer Collection Agency Bond||$25,000||$250*||CT Dept. of Banking Consumer Credit Division|
|Mortgage Broker Bond||$50,000/$100,000/$150,000||Varies||CT Dept. of Banking Consumer Credit Division|
|Motor Vehicle Dealer Bond||$50,000||$500* (two years)||CT Dept. of Motor Vehicles|
|Motor Vehicle Leasing or Rental Bond||$10,000||$100||CT Dept. of Motor Vehicles|
* Cost can vary depending on the bond amount required and your credit rating
Our knowledge of Connecticut bond requirements allows our team to provide accurate quotes quickly. For guidance through the process of selecting surety bonds for your business, talk to one of our experts today.