Overview of Indiana Collection Agency Bond Requirements

Opening a collection agency in Indiana will require you to get licensed at the state Securities Division. There, as part of the licensing process, you will need to post a collection agency bond in the amount of $5,000.

The bond is required as a form of financial security for clients to the collector. It guarantees that collection agencies comply with the relevant provisions of the Indiana Code as well as the conditions of the agreements they have with their clients. The bond further guarantees you will account for any collections you make and pay such collections to the client within a certain amount of time.

If a collector violates these requirements, clients who suffer a loss due to such violation can file a claim against their bond to request compensation. Under the bond agreement the surety then investigates the issue and may extend compensation to claimants up to the full amount of the bond, also known as the penal sum of the bond.

Learn more about bonds, how they work and why you need one from our ‘What is a surety bond’ guide!

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

Keep reading for more information regarding the cost of this bond, what a bond claim is, and how to apply for an Indiana collection agency bond or call us at (866)-450-3412!

Bond Cost

To get bonded, you need to pay a bond rate. This rate, or cost, is determined by the surety as a percentage of the total amount of your bond. In determining your rate, the surety will primarily look at your personal credit score. In certain cases, to make a better decision, sureties may also request to review business or personal financial statements or other applicant financial information.

Typically, credit score has the highest influence on the bond cost, and the higher an applicant’s score, the lower their bond rate. Applicants with a score of 700 FICO or more usually get the lowest possible rate on their bond.

To get an estimate of your bond cost, try our bond calculator or check the table below! You can also request a free and exact cost by following the application link!

Bond Cost Based on Credit Score
Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Indiana Collection Agency Bond $5,000 $100 $100-$125 $125-$250 $250-$500

Bad Credit Bond Program

Is your credit score far-from-perfect? You can still get bonded without complication!

To get bonded, we offer our applicants with lower scores the possibility to apply through our Bad Credit Program. While rates under the program are higher than for applicants with better scores, these rates are not fixed! Once you improve your credit score, you can get bonded at increasingly better rates when renewing your bond down the road!

To learn more about getting bonded with bad credit - see the program page!

Claims Against Your Bond

Title 25, Article 11, Chapter 3 of the Indiana Code defines the bond requirements for collection agencies in the state. The chapter specifically states that under such bond agreement collectors are required to a) account for all collections they make on behalf of their clients in a faithful manner, and b) pay any collections they have made on behalf of their clients within 60 days of making such collections, less charges.

If a collector violates either of these two conditions, leading to a loss or damage to a client, the latter can file a claim against the former’s bond. This will then usually lead to the surety investigating the issue and probably extending compensation to the claimant(s) to cover for their losses. Such compensation can be as high as the full amount of the bond. Once a surety compensates a claimant, the bonded collector is bound to reimburse the surety in full.

Apply for Your Bond Here!

Ready to get your Indiana collection agency bond?

Complete and submit our bond application form and we will contact you shortly with your free bond quote and further details on finalizing your application. It will take up to two working days for your bond to be issued, once we have your application. We will then mail it to you, as well as 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

Feel free to call us at (866)-450-3412 anytime to learn more about this or other bonds!


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.