Telemarketing Bonds are often required of telemarketers before they can start making calls. Telemarketing bonds are part of the industry's rules and regulations.
What is a Telemarketing Bond?
A Telemarketing Bond (also known as a Telemarketer Bond or Phone Solicitor Bond) is a type of surety bond that is often required of call centers before they can get licensed and legally start making call into a specific state.
For example, a Utah Telemarketing Bond is often required of call centers in Utah before they can get licensed and start legally making calls into Utah.
If you are planning on calling into multiple states, you might be required to furnish a bond for each state.
Who Needs a Telemarketing Bond?
Whether you need a Telemarketer Bond will depend mainly on what states you will be calling. While many states require telemarketers to get bonded, some states do not.
States that do not require Telemarketing Bonds:
Other factors that determine if you need this bond include what are you selling, how you dial telephone numbers (manual vs. autodial), where you are getting your call list, etc.
How Does a Telemarketing Bond Work?
A common misconception is that a Telemarketing Bond protects the telemarketing company. This is not the case. These bonds are a protection for the state and consumers that are called.
A Telemarketing Bond promises that you will abide by the rules and regulations of your telemarketing license. The bond is in place to protect the residents of the state in which you are licensed in. They are also there to protect the state in which you are licensed.
If you abide by your licenses rules and regulations, it is unlikely a claim will be made against your bond. But, if you fail to abide by the rules, someone might make a claim against your bond.
Common reasons someone might make a claim against your bond include:
- Ignoring telemarketing laws in the state you are licensed in/calling in
- Calling people off the Telemarketing Do Not Call List
How Much Will a Telemarketing Bond Cost?
Every state will have a different Telemarketing Bond amount. Most states have bond amounts that are between $25,000 - $50,000, though Arizona and California require a $100,000 bond and Texas requires only a $10,000 bond.
Regardless of the bond amount your state requires, you will not need to pay this entire amount. Instead, you will pay a one-time payment, generally between 1-15% of the total cost.
The rate you pay is largely based on your personal credit history. Those with good credit, might only have to pay a 1% rate, while those with less-than-perfect credit will have to pay more.
You can see what you'd pay for a telemarketing bond by getting a free quote below:
What Else Do I Need to Know?
Telemarketer Bonds are usually valid for one year. Bonds will need to be renewed before their expiration date for telemarketers and telemarketing companies to remain active and compliant.
Renewing your bond is easy, and requires minimal paperwork and another one-time payment.