Overview of Idaho Collection Agency Bond Requirements

To open a collection agency in Idaho, you will be required to post a $15,000 collection agency surety bond, along with your license application.

The purpose of this bond is to guarantee that licensed collection agencies operate in compliance with Title 26, Chapter 22 of the Idaho Statutes, also known as the state collection agency act. The bond’s conditions concerns the proper accounting and transferring of collections made on behalf of creditors who are an agency’s clients, as well as the fair treatment of debtors. For more information about the conditions of this bond, see the section on bond claims below!

Collectors who violate these conditions and cause losses to either creditors or debtors through dishonesty or malpractice, may give rise to a claim against their bond. The surety that issues and backs the bond may then extend compensation to claimants as high as the full bond amount, also known as its penal sum.

Never applied for a bond before? Our detailed ‘What is a surety bond’ guide will help you understand what bonds are, how they work, and why you need to get bonded.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

Read on for an overview of the cost of your Idaho collection agency bond, what bond claims are, and how to apply for your bond or a free quote. To speak to someone instead, call us at (866)-450-3412 and we’ll address all your bond-related questions!

Bond Cost

Bond cost and bond amount are not the same. The bond amount, which initially is $15,000 for this bond, is the maximum amount of compensation a surety may extend under a bond claims process. The bond cost is only a small fraction of that full amount and is determined by the surety when you apply for the bond.

The most important factor that influences bond cost is personal credit score. The higher an applicant’s score is, the lower their bond rate will be. Further factors that may also influence cost are financial statements, an applicant’s liquidity and assets, and even their work experience and record. Based on those factors, the surety offers an applicant a bond rate.

Applicants with high credit score of 700 FICO or more can expect to get bonded at around .75% to 1.5% of the total bond amount. Applicants with lower scores will be offered somewhat higher rates on their bonds.

When getting a collection agency bond in Idaho for the first time, you will be asked to submit a $15,000 bond. Upon renewing the bond in following years, the bond amount may be higher, depending on the amount of collections you have performed during the preceding year. The maximum amount of your bond when renewing can be as much as $100,000!

Get a cost estimate for your bond through our bond calculator or by checking the table below! For a free quote on your bond, see the section on getting bonded.

Bond Cost Based on Credit Score
Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Idaho collection agency bond $15,000 $112.5-$225 $150-$375 $375-$750 $750-1,125

Bad Credit Bond Program

Want to get a bond but your credit score is low? We’ve got options!

You can apply and be approved through our Bad Credit Program! Rates under this program are higher due to applicants’ lower scores but by improving your score, you can get better rates every time you renew your bond.

Learn more about the various bad credit options on the program page and by contacting us.

Claims Against Your Bond

Section 26-2232, Title 26, Chapter 22 of the Idaho Statutes specifies the conditions of the bond agreement for collection agencies in the state. The section specifies two general situations in which a claim can be made against the bond.

Under the bond agreement, if a collector fails to account for and pay any money they have received or collections they have made on behalf of their clients, this may give rise to a claim against the bond. Similarly, if a collector fails to return to a debtor any sum received which was not applied to the debtor’s debt, then a claim can also be filed against the bond, apart from any other legal remedies that a debtor has a right to.

In either of these cases, a claims process against the collector’s bond can be initiated to secure compensation for any losses that claimants experience. When a claim is filed, the surety will investigate the situation and extend compensation to claimants for as much as the full amount of the bond.

Under the bond agreement, the bonded party is then required to repay the surety in full for any compensation it extends!

Apply for a Bond!

Ready to apply for your bond or would you like to request a free quote? Complete our bond form and we will contact you shortly with an exact quote, along with further details on finalizing your application.

Once your application is finalized and processed, it will take up to two working days for your bond to be issued and mailed to you. We will also provide you with a digital copy.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

Learn more about the bonding requirements for Idaho collection agencies by calling us at (866)-450-3412!


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.