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.
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.
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.
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!CACHEFILE: /var/www/vhosts/bryantsuretybonds.com/blog/../bond-form/cache/temp-017fe650370664dc3b7431cb91f6c52c.cache
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|