New Mexico Repossessor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain New Mexico Repossessor Bonds
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All repossession companies operating in New Mexico
- Purpose: To ensure the public will receive compensation for any damages should the repossession company violate licensing law
- Who Regulates Repossessors in New Mexico: The New Mexico Financial Institutions Division
New Mexico statute 61-18A-5 requires all repossession companies operating in the state to obtain a license with the Financial Institutions Division. The New Mexico legislature enacted the licensing laws and regulations to ensure that repossessors engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, repossessors must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the New Mexico Repossessor Bond?
New Mexico requires repossession companies to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the repossessor fails to comply with the regulations set forth in New Mexico statutes 61-18A. Specifically, the bond protects the public in the event the repossessor engages in any acts of fraud or fails to deliver repossessed property to the rightful owners. In short, the bond is a type of insurance that protects the public if the repossessor breaks licensing laws.
How Can an Insurance Agent Obtain a New Mexico Repossessor Bond?
BondExchange makes obtaining a New Mexico Repossessor Bond easy. Simply login to your account and use our keyword search to find the “Repossessor” bond in our database. Don’t have a login? Gain access 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.
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Is a Credit Check Required for the New Mexico Repossessor Bond?
No, a credit check is not required for the New Mexico Repossessor Bond. Because the bond is considered relatively low risk, the same rate is offered to all repossessors in New Mexico regardless of their credit history.
How Much Does the New Mexico Repossessor Bond Cost?
The New Mexico Repossessor Bond costs just $100 per year or $10 per month.
How Does New Mexico Define “Repossessor?”
New Mexico statute 61-18A-2 defines a repossessor as any business entity who repossesses personal property for others for a fee.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Repossessors Apply For a License in New Mexico?
Repossessors in New Mexico must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the NMLS’s application guidelines for details on the process.
License Period – The New Mexico Repossessor License expires on May 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Repossessors must purchase and maintain a $5,000 surety bond
Step 2 – Request a NMLS Account
The New Mexico Repossessor License application is submitted electronically through the Nationwide Multistate Licensing System (NMLS). To submit a license application, applicants must first request to obtain an NMLS account.
Step 3 – Complete the Application
All New Mexico Repossessor License applications can be completed online through the NMLS. Applicants must complete the entire application, and submit the following items:
- Primary company and consumer complaint contacts
- Disclosure questions
- Certificate of Good Standing
Repossessors must pay a $250 licensing fee when submitting their application.
How Do New Mexico Repossessors Renew Their License?
Repossessors can renew their license online through the NMLS. License holders need to simply login to their account to access their renewal application. The New Mexico Repossessor License expires on May 31 of each year and must be renewed before the expiration date.
What Are the Insurance Requirements for the New Mexico Repossessor License?
New Mexico does not require repossessors to purchase any form of liability insurance as a prerequisite to obtaining a business license. Repossessors must purchase and maintain a $5,000 surety bond.
How Do New Mexico Repossessors File Their Bond?
New Mexico repossessors should submit the completed bond form, including the power of attorney, electronically through the NMLS. The surety bond requires signatures from both the surety company that issues the bond and a representative from the repossession company. The surety company should include the following information on the bond form:
- Name of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
What Can New Mexico Repossessors Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, repossessors in New Mexico must follow all license regulations in the state, including some of the most important issues below that tend to cause claim
- Do not engage in any acts of fraud
- Deliver all property repossessed to the rightful owners
- Do not damage property when conducting repossessions
What Other Insurance Products Can Agents Offer Repossessors in New Mexico?
New Mexico does not require repossessors to purchase any form of liability insurance as a prerequisite to obtaining a business 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 New Mexico Repossessor Customers?
The NMLS conveniently provides a public database to search for active repossessors in New Mexico. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.