Utah Telemarketer Bond
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How much does a telemarketing bond cost in Utah?
The cost of a telemarketing bond in Utah starts at 1% of the total bond amount and it depends on the required bond amount and the credit of the applicant applying for the bond. Utah requires telemarketers to have a bond in the amount of $25,000, $50,000, or $75,000. Therefore, a highly qualified applicant applying for a $50,000 telemarketer bond could be approved for just $500.
Why do telemarketers need a surety bond in Utah?
Telemarketers need a surety bond because the Utah Department of Commerce Division of Consumer Protection requires one as a condition of registration. These bonds protect consumers by serving as a guarantee telemarketers will comply with state laws as outlined in Title 13, Chapter 25A of the Utah Code. If consumers are wronged as result of the principal’s (the telemarketer) unlawful business practices, the bond protects them from financial loss up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
What is the amount of my surety bond?
A $25,000 surety bond is required if you and no other affiliated person has violated phone soliciting business rules within the last 3 years preceding the application date, and the telemarketing business has fewer than 10 employees.
A $50,000 surety bond is required if you and no other affiliated person has violated phone soliciting business rules within the last 3 years preceding the application date, and the telemarketing business has 10 or more employees.
A $75,000 surety bond is required if you or an affiliated person has violated phone soliciting business rules within the last 3 years preceding the application date.
If you are still unsure which bond amount is right for you or you need additional assistance, contact the Division of Consumer Protection at 801-530-6601.
Terms of Utah telemarketing bonds
Telemarketer bonds in Utah must be renewed from annually by continuation certificate executed by the surety for as long as the principal wishes to engage in the business of telemarketing. The surety can cancel the bond at any time by giving written notice of cancellation to the Division of Consumer Protection at least 90 days prior to the effective termination date.
How to become a telemarketer in Utah
To become a telemarketer in Utah, the applicant must fill out an application form, complete background checks and fingerprinting for required personnel, post a surety bond, pay the registration fee, and outline business scripts/plans/etc.
The telemarketing applicant should begin the application process by filling out the Telemarketing Application Permit form. As you complete the form, be sure to include all required materials:
- $500.00 annual application fee via check or money order made payable to State of Utah
- Documentation of applicant’s business organization
- Copy of any previous telemarketing permit denial by Utah or another state and copies of any prior permits issued
- Current driver’s license or valid government-issued photo identification card or Certificate of Existence of Registered Agent
- Original documentation of the surety bond obtained in the applicable amount of $25,000, $50,000, or $75,000
- Photocopy of driver’s license or other government-issued identification for owners, officers, directors, and key employees (employees that are responsible for the daily operations of the business)
- Completed fingerprint cards for all owners, officers, directors, and key employees (employees that are responsible for the daily operations of the business); contact your local police department to request to be fingerprinted (they may charge additional fees)
- Completed background check consent form for all owners, officers, directors and key employees (employees that are responsible for the daily operations of the business); the fee is $20.00 per person and must be payable to the Division of Consumer Protection
- A product/service price list of what the telemarketing will be selling including sample copies of materials that will be provided to consumers
- A copy of any rules, regulations, terms, restrictions, or conditions that apply to a prize, bonus, award, or gift that the applicant will be marketing
- A copy of applicant’s written policy for compliance with federal Do-Not-Call rules
- A copy of each sales script/sales presentation that will be used by the applicant
All materials should be mailed to Utah Department of Commerce at the following address:
Utah Department of Commerce
Division of Consumer Protection
160 East 300 South, 2nd Floor
P.O. Box 146704
Salt Lake City, UT 84114-6704
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