What Are Collection Agency Bonds?

Collection agency bonds guarantee the compliance with regulations in the state in which the agency operates. They are a licensing requirement for collection agencies or third-party debt collectors in most states.

Apart from guaranteeing compliance with state laws, the purpose of the bond is to make sure funds collected by an agency are collected in a proper manner and rightfully distributed to their clients.

These bonds also protect the state and the public from collection agencies that misuse collected funds or make use of illicit means and practices to collect debts.

If an agency is found to be in violation of these conditions, a claim can be filed against their bond to secure compensation for anyone who suffers losses or damages as a result. The surety that backs the bond then investigates the claim and may offer compensation to claimants for as much as the full amount of the bond.

**NEW:** Download our free 50+ pages e-book for an in-depth overview of all the steps you need to take when opening a debt collection agency in your state! thin-nologo

If this is your first time getting bonded, see our ‘What is a surety bond’ guide for a full explanation of how bonds work, and why they are required by law.

For more information about the cost of your bond, and how to get bonded, see the sections below.

Start your surety bond application today! Why us?
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What’s the Cost of a Collection Agency Bond?

A collection agency bond’s cost is equal to a fraction of the total bond amount.

The amount of the bond is set at the state level and varies significantly between states. The cost is determined by the surety you apply with, based on several criteria.

How is bond cost determined?

What percentage or rate you will be offered by a surety depends on a number of financial factors, with personal credit score being the most important one. To determine your rate, sureties may also consider:

  • Your financial statements
  • Your assets and liquidity
  • Your industry experience and resume

Applicants who have a high credit score are offered bonds at so-called standard market rates that vary between 1%-4% of the total bond amount.

Find out more about what determines your bond’s cost and how you can lower it over time through our expert surety bond cost guide!

What if I have a low credit score?

Those who have trouble with their credit score or have no credit at all can still get bonded, even though at higher rates. Rates for such applicants are typically upward of 5% of the bond amount.

Rates for such applicants are usually higher, due to a higher risk involved in bonding applicants with poor credit. Yet by improving your credit score over time, you can get increasingly better rates!

Try our bond calculator below to get an estimate of the cost of your bond.

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Surety Bond Cost Calculator

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How Do I Apply for a Collection Agency Bond?

Get started by completing our online bond application form.

We will soon get back to you with a free quote on your bond, and further details on finalizing your application.

If you have difficulties with your application or need advice and guidance, call us at (866) 450-3412!

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Alaska Collection Agency Alaska Dept. of Commerce Apply Now
Arizona Collection Agency Dept of Financial Institutions Apply Now
Arizona Collection Agency Bond Apply Now
Arkansas Collection Agency State Board of Collection Agencies Apply Now
Colorado Collection Agency Collection Agency Board Apply Now
Connecticut Collection Agency $25K Commissioner of Banking Apply Now
Florida Collection Agency Office of Financial Regulation Apply Now
Hawaii Collection Agency Bond State of Hawaii Apply Now
Idaho Collection Agency Dept of Finance Apply Now
Illinois Collection Agency Dept of Professional Regulation Apply Now
Indiana Collection Agency State Board of Accounts Apply Now
Local Government City of Buffalo Collection Agency Bond City of Buffalo, Dept of Economic Development Apply Now
Local Government DCA Licensing Center Debt Collection Agency NYC - DCA Licensing Center Apply Now
Maine Debt Collector/Repossession (Continuous) Office of Consumer Credit Regulation Apply Now
Maryland Collection Agency Commissioner of Financial Regulation Apply Now
Massachusetts $25,000 Collection Agency Massachusetts Division of Banks Apply Now
Michigan Collection Agency Bureau of Commercial Services, Licensing Division Apply Now
Michigan Non-Depository Sales Finance Company and/or Out-O Department of Insurance and Financial Services Apply Now
Michigan Depository Financial Institution - Sales Finance C Department of Insurance and Financial Services Apply Now
Minnesota Collection Agency (Corp/LLC) Commissioner,Dept of Commerce Apply Now
Minnesota Collection Agency (Partnership) Commissioner,Dept of Commerce Apply Now
Minnesota Collection Agency (Sole Prop.) Commissioner,Dept of Commerce Apply Now
Nebraska Collection Agency License Bond NE Collection Agency Licensing Board Apply Now
Nevada COLLECTION AGENCY State of Nevada Business & Industry Dept Apply Now
Nevada Collection Agency Bond Department of Business and Industry Apply Now
New Jersey Collection Agency Deputy Attorney General Apply Now
New Mexico Collection Agency Corporate Bond Finance Institutions Division Apply Now
New York Collection Agency Bond(City of Buffalo, NY) Office of Licenses Apply Now
New York Collection Agency Bond (New York City) NYC Department of Consumer Affairs Apply Now
North Carolina 2013-2014 New Domestic Collection Agency Bond Dept of Insurance Apply Now
North Dakota Collection Agency Dept of Financial Institutions, Consumer Division Apply Now
Oregon Collection Agency Dept of Consumer & Buisness Services Apply Now
Other (Gryphon Corp.) Client Contract Bond Gryphon Corp. Apply Now
Pennsylvania Credit Services Organization Bond department of state Apply Now
Rhode Island Collection Agency State of Rhode Island Apply Now
State of Hawaii Collection Agency Director, DCCA, PVL, Licensing Branch Apply Now
Tennessee Collection Service License Bond Tennessee Department of commerce and Insurance Apply Now
Tennessee Collection Agency Bond Tennessee Department of Commerce and Insurance Apply Now
Tennessee Collection Service License Tennessee Department of Commerce Apply Now
Tennessee Credit Services Organization Bond Director of Tennessee Division of Consumer Affairs Apply Now
Texas Third Party Debt Collector Secretary of State, Statutory Documents Section Apply Now
Texas Private Child Support Enforcement Agencies Bond Texas Department of Banking Apply Now
Utah Collection Agency Dept of Commerce Apply Now
Washington Collection Agency Business and Professions Division, Collection Agen Apply Now
West Virginia Collection Agency Tax Dept, Internal Auditing Division Apply Now
Wisconsin Collection Agency Dept of Financial Institutions Apply Now
Wyoming Collection Agency Collections Agency Board Apply Now

About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.