What Is a Collection Agency Bond?
A collection agency bond is a state‑required surety bond that guarantees collection agencies operate ethically, follow all debt‑collection laws, and protect consumers from financial harm.
This bond protects the public and the state from:
- Misrepresentation or abusive collection practices
- Mishandling of client funds
- Failure to remit collected payments
- Violations of state or federal collection laws
- Fraud or misconduct
If you’re applying for or renewing a collection agency license, your state requires this bond before issuing the license.
Collection Agency Bond Amount & Cost
Bond amounts vary by state and typically range from $5,000 to $50,000, though some states require higher limits.
Your cost depends on:
- Bond amount
- Credit score
- Business financials
- State regulations
Most applicants qualify instantly with competitive rates.
Who Needs a Collection Agency Bond?
You may need a collection agency bond if you are:
- A third‑party debt collector
- A debt buyer
- A repossession company (in some states)
- A loan servicing company
- A skip‑tracing or recovery agency
- A medical or financial collections firm
Any business collecting debts on behalf of others may be required to file this bond.
Requirements & Eligibility
States typically require:
- Completed collection agency license application
- State‑mandated bond amount
- Credit review
- Background checks
- Annual renewal
Some states require separate bonds for branch locations.
How the process works in three easy steps
1
Complete the App
Complete the 60‑second application
2
Secure the low rates
We secure the lowest rate available
3
Receive your bond
You receive your same day bond issuance for state filing
Why Choose Us?
Lowest rates from A‑rated sureties
Fast approvals
Digital delivery
- Collection agency bond specialists
- 100% state compliance guaranteed
Top questions answered
Our most common questions answered efficiently.
Pricing depends on the bond amount and your credit. Most bonds are affordable and approved quickly.
Most applicants receive same‑day approval.
It guarantees compliance with state and federal debt‑collection laws and protects consumers and clients from financial harm.
Bonds are generally non‑refundable once issued.
Yes — your bond must remain active for your license to stay valid.
