Overview of North Carolina Collection Agency Bond Requirements

To open a collection agency in the state of North Carolina, you will need to get licensed, and bonded with a collection agency bond. The amount of this bond varies depending on whether you are an in-state (called “domestic”) collection agency and applicant, out-of-state (“foreign”) or from outside of the U.S. (“alien”). The first type requires a $10,000 bond, the second - a $20,000 bond, and the third - a $40,000 bond. The bond, as well as the license expire yearly on July 1, and must be renewed prior to that date.

The function of this bond is to guarantee that licensed collection agencies will comply with the legal provisions outlined in Chapter 58, Article 70 of the NCGS. In particular, the Article states that the bond is for the benefit of clients of collection agencies. If an agency violates the provisions of the Article, thereby causing losses to their clients, the latter can file a claim against the agency’s bond.

When a claim is filed against a bond, the surety will extend compensation to claimants up to the full amount of the bond, also known as its penal sum.

If you are new to surety bonds and want to know more before proceeding, see our detailed ‘What is a surety bond’ guide!

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To find out more about the cost of getting a North Carolina collection agency bond, what a bond claim is, and how you can get bonded - read on!

To speak to someone about the bonding requirements in the state, call us at (866)-450-3412!

Cost of Your Collection Agency Bond

The cost of getting bonded is a fraction of the full bond amount. The amounts for this bond in North Carolina are $10,000, $20,000, and $40,000.

Your bond rate will be based on the amount that applies to you. Your rate is determined by the surety you apply with on the basis of your personal credit score. The higher your credit score is, the cheaper it will be for you to get bonded. Sometimes, the surety may also require applicants to provide further financial information such as their financial statements or information about their assets and liquidity.

For those applicants who have a perfect score, one of 700 FICO and more, sureties typically extend the lowest rates. For this type of bond, high-credit applicants can expect to be offered a rate between 1% and 1.5% of the total amount of their bond.

Our bond calculator can provide you with a quick estimate of your bond cost. You can also see the table below for a tentative range of your bond cost based on your credit score.

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The ballpark estimate on your premium is: $100 - $167

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Bond Cost Based on Credit Score
North Carolina Collection Agency Bond Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Domestic $10,000 $100-$150 $100-$250 $250-$500 $500-$1,000
Foreign $20,000 $150-$300 $200-$500 $500-$1,000 $1,000-$1,500
Alien $40,000 $300-$600 $400-$1,000 $1,000-$2,000 $2,000-$3,000

* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.

Bad Credit Bond Program

Even with a bad credit score, you can get bonded fast and easy!

Our Bad Credit Program is tailored to allow applicants who currently have a low score to get bonded, and develop their business. Rates under this program are higher because sureties perceive applicants with lower scores as a higher risk. But your bond cost is not fixed, and as you improve your credit score, you can expect this to be mirrored in the bond rate you get when you renew your bond.

Find out more about the program, request a quote or get in touch with us through the program page!

Claims Against Your Bond

The North Carolina collection agency bond is intended to provide a guarantee to clients of collection agencies that the latter will conduct business in compliance with the Chapter 58, Article 70 of the NCGS. This Article includes the specific legal provisions which collection agencies in the state must comply with as well a what constitutes a violation of the Article. It also explicitly states that this bond is “for the benefit of any person, firm or corporation for whom the collection agency engages in the collection of accounts.”

If, for example, the bonded agency makes collections on behalf of a client but then fails to account for these collections or transfer them to its client that is considered a violation of the bond agreement. The client may then have cause to file a claim against the agency’s bond.

When this happens, the surety must take action and may need to compensate claimants for their losses. Such compensation may be as high as the full amount of the bond. In return, the bonded agency must then reimburse the surety in full for any compensation it extends to claimants.

Because of the complexity of claims as well as the financial burden they may cause to bonded persons, the best course of action is to always comply with all legal provisions and conditions. In this way, businesses only assume the minimal cost of getting bonded.

Apply for Your NC Collection Agency Bond!

Get started with the bonding process by completing our bond form. We will provide you with an exact quote shortly after we receive the completed form.

Once you finalize the bond application process, it will take about two working days for your bond to be issued and mailed. You will also receive a digital copy via email.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

To speak to our bond professionals and find out more about getting a North Carolina collection agency bond, call us at (866)-450-3412! We look forward to hearing from you!


About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.