Comprehensive Guide to California Telephonic Seller Bond
California Telephonic Seller Bond is a type of surety bond required by the California Attorney General’s Office for businesses engaged in telephonic sales (telemarketing). This bond ensures compliance with state laws and protects consumers from fraudulent or unethical business practices. The bond amount is $50,000 for telephonic sellers and $100,000 if the seller also operates as a telephonic seller agent (third-party sales representatives). The cost of the surety bond is usually between 1% and 3% of the bond amount
How to Get a California Telephonic Seller Bond
At Yoursuretybond.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the California Telephonic Seller Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
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Key Details:
- Bond Requirement: Mandatory for telephonic sellers under California Business & Professions Code § 17511 et seq.
- Purpose: Provides financial recourse for consumers harmed by illegal or deceptive telemarketing practices.
- Who Needs It? Any business selling goods/services via telephone calls to California residents.
California Telephonic Seller Bond Requirements
Bond Amount:
- $50,000 for telephonic sellers.
- $100,000 if the seller also operates as a telephonic seller agent (third-party sales representatives).
Additional Requirements:
- Registration: Must register with the California Attorney General’s Office.
- Fees: Registration fee of $500 (subject to change).
- Renewal: The bond must remain active and be renewed annually.
Why is This Bond Required?
- Consumer Protection: Ensures victims of fraud can file claims.
- Legal Compliance: Required under California Business & Professions Code § 17511.9.
- Avoid Penalties: Operating without a bond can lead to fines or business shutdown.
What Happens if a Claim is Filed on my Bond?
If a consumer files a valid claim for fraud or violations, the surety will:
- Investigate the claim.
- Compensate the claimant (up to the bond amount).
- Seek reimbursement from the bonded business.
Example: If a telemarketer fails to deliver goods as promised, a consumer can file a claim to recover losses.
Maintaining & Renewing the Bond
- The bond must be active at all times while conducting telemarketing in California.
- Renew annually before expiration to avoid penalties. (Surety1 will send you renewal reminders)
- Notify the CA Attorney General of any changes (business name, address, etc.).
Penalties for Non-Compliance
- Fines & Legal Action: The state can impose fines or revoke registration.
- Business Shutdown: Operating without a bond may lead to cease-and-desist orders.
Frequently Asked Questions (FAQs)
Q: Who is exempt from this bond requirement?
A: Nonprofit organizations, licensed insurance agents, and certain regulated businesses may be exempt.
Q: Can I get a bond with bad credit?
A: Usually yes but you may pay more for the bond.
Q: How long does it take to get bonded?
A: Typically 1-2 business days if approved.
Q: What happens if my bond is canceled?
A: You must replace it immediately or stop telemarketing in California.
Conclusion
The California Telephonic Seller Bond is a crucial compliance requirement for telemarketers. By securing this bond, businesses demonstrate financial responsibility and protect consumers from fraud.
Disclaimer: This guide is for informational purposes only. Regulations may change; always verify with the California Attorney General’s Office or legal counsel.