Overview of North Dakota Collection Agency Bond Requirements

When you apply for a collection agency license from the state Department of Financial Institutions, you are required to post a $20,000 collection agency bond.

This bond serves as a guarantee that a licensed collection agency will do business in compliance with Chapter 13-05. This chapter specifies the specific obligations and responsibilities of collection agencies in the state, as well as the prohibited actions and possible penalties for such.

Violating this chapter may lead to a claim against the agency’s bond. Claims can be filed against a bond when such violation has lead to losses or damages to persons that are clients to an agency. The surety investigates claims and determines the amount of compensation to extend to claimants. Depending on the case, compensation can be equal to the full amount of the bond, its so-called penal sum.

Wondering why you need a surety bond? Our ‘What is a surety bond’ guide will provide you with a detailed explanation of how bonds work, and why businesses 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

Would you rather to speak to someone personally? Call us at (866)-450-3412 to speak to one of our experts!

Cost of Getting Bonded as a Collection Agency in the State

The cost of getting bonded is equal to a fraction of the full penal sum of the bond. The surety determines the exact cost, primarily based on applicants’ credit score. Sureties may also consider applicants personal and business financial statements or their assets and liquidity to properly determine the rate they want to offer.

The higher an applicant’s credit score is, the lower the rate they are offered. Applicants with scores above 700 FICO typically get the lowest possible rates on their bonds. For the North Dakota collection agency bond, such applicants can expect to get bonded at a rate between .75% and 1.5% of the total amount.

Try our bond calculator to get an estimate of your bond rate or see the table below. You can also request a free and precise quote by completing our bond application.

Bond Cost Based on Credit Score
Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
North Dakota Collection Agency Bond $20,000 $150-$300 $200-$500 $500-$1,000 $1,000-$1,500

Bad Credit Bond Program

Even if you have a low credit score, thanks to our Bad Credit Program you can still get bonded!

Our program is designed to provide bonds to those applicants who currently have a low credit score. Though rates for such applicants are higher than for applicants with higher scores, these rates are not fixed or final. By improving your credit score, you can get increasingly better bond rates over time, as you renew your bond.

Find out more about getting bonded with a low score through the program page!

Surety Bond Claims

Under Chapter 13-05 of the North Dakota Century Code, collection agencies must comply with various responsibilities and obligations. 13-05-06.3 of the chapter specifies the prohibited acts that would constitute a violation.

These include making false statements or knowingly omit information when a collection agency is communicating with a government agency. They further include charging fees that are prohibited by the chapter, as well as failing to account for collections made on behalf of other persons.

When a collection agency commits such a violation, any person who is damaged by the violation and suffers a financial loss, can make a claim against the agency’s bond. Claims against bonds seek to secure compensation for losses suffered by the claimant. Typically, sureties will investigate bond claims and then extend the necessary amount to cover claimants’ losses, up to the full amount of the bond. But, as with all surety bond agreements, it is the bonded party that is ultimately liable for bond claims. Therefore, after a bond claim is resolved by the surety, the bonded collection agency must repay the surety in full.

Apply for Your Bond Today!

You can get a free quote on your bond without any additional obligations by submitting our bond form. Along with your quote, we will also provide you with all the necessary details about completing the bond application process.

Once we have your final application, it will take up to two working days for the surety to issue your bond. We will then forward the bond to you via standard mail as well as email!

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

You can call us anytime at (866)-450-3412 if you need more information about the bonding requirements for collection agencies in North Dakota!


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.