Do You Need a Collection Agency or Debt Collector Surety Bond?

Most states require collection agencies to obtain a surety bond before they can receive their business license or registration. A Collection Agency Surety Bond, also known as a Debt Collector Surety Bond, guarantees that collection agencies will appropriately handle the money they receive when pursuing outstanding debts. They also require that these funds be routed to the company with the debt outstanding, minus any agreed-upon collection fees. Anyone who is operating a collection agency or is in the business of collecting or receiving payment for others of any account, bill, or other indebtedness.

• Many states have a license or registration requirement for collection agencies or debt collectors that varies from state to state.
• Applicants will need to either apply directly with the state in which business will be conducted in or with the National Mortgage Licensing System (NMLS).
• In addition to the license or registration, often there is a surety bond requirement. Surety bond amounts differ for each state.

States' Surety Bond Requirements:

1. Alaska Collection Agency requires a $5,000 surety bond. (Apply with the Department of Commerce and Economic Development, Division of Banking and Securities)


2. Arizona Collection Agency requires a $10,000 - $35,000 surety bond based on the gross annual income of business. (Apply with the NMLS)


3. Arkanas Collection Agency requires a $10,000 to $50,000 surety bond for each location. (Apply with the State Board of Collection Agencies)


4. Colorado Collection Agency requires a $12,000 to $20,000 surety bond based on revenue. (Apply with the Attorney General’s Department of Consumer Protection, Collection Agency Regulation Division)


5. Connecticut Consumer Collection Agency requires a $25,000 surety bond. (Apply with the NMLS)


6. Florida Collection Agency requires a $50,000 surety bond. (Apply with the Office of Financial Regulation, Consumer Collection Agencies)


7. Hawaii Collection Agency requires a $25,000 surety bond for the main branch and $15,000 surety bond for any additional branch locations. (Apply with the Department of Commerce and Consumer Affairs, PVL Licensing Branch)


8. Idaho Collection Agency requires a $15,000 surety bond. (Apply with the NMLS)


9. Illinois Collection Agency requires a $25,000 surety bond. (Apply with the Department of Financial and Professional Regulation)


10. Indiana Collection Agency requires a $5,000 surety bond. (Apply with the Secretary of State, Securities Division)


11. Maine Debt Collector requires a $5,000 up to a $50,000 surety bond based on gross collection revenue and debt collector services such as repossessions, letter writing only, and/or direct collections. (Apply with the Department of Professional & Financial Regulation, Consumer Credit Protection)


12. Maryland Collection Agency requires a $5,000 surety bond. (Apply with the State Collection Licensing Board)


13. Massachusetts Debt Collector requires a $25,000 surety bond. (Apply with the NMLS)


14. Michigan Collection Agency requires a $5,000 surety bond the initial year and thereafter the bond amount is based on the average monthly business. (Apply with the Licensing and Regulatory Affairs)


15. Minnesota Collection Agency requires a $50,000 surety bond plus $5,000 for every $100,000 collected from Minnesota debtors in a calendar year up to a maximum surety bond amount of $100,000. (Apply with the Department of Commerce, Collections Licensing)


16. Nebraska Collection Agency requires a $5,000 surety bond for 5 solicitors or less, a $10,000 surety bond for 5 – 15 solicitors and a $15,000 bond for 16 or more solicitors up to a maximum $100,000 surety bond. (Apply with the Secretary of State, Collection Agency Licensing Board)


17. Nevada Collection Agency or Foreign Collection Agency requires a $35,000 surety bond for average money collections of less than $100,000, money collections over $100,000 require up to a maximum surety bond amount of $60,000. (Apply with the Financial Institutions Division, Department of Business and Industry)


18. New Jersey Collection Agency requires a $5,000 surety bond. (Apply with the Division of Revenue)


19. New Mexico Collection Agency requires a $5,000 surety bond. (Apply with the Regulations and Licensing Department)


20. New York City Debt Collection Agency requires a $5,000 surety bond. (Apply with the Department of Consumer Affairs)


21. New York, City of Buffalo Collection Agency requires a $5,000 surety bond. (Apply with the Permit & Inspection Services)


22. North Carolina Collection Agency requires a $10,000 surety bond. (Apply with the Department of Insurance, Agent Services Division)


23. North Dakota Collection Agency requires a $20,000 surety bond. (Apply with the NMLS)


24. Tennessee Collection Service requires a $15,000 surety bond for up to 4 employees, a $20,000 surety bond for 5-9 employees and a $25,000 surety bond for 10 or more employees . (Apply with the Department of Commerce and Insurance, Collection Services Board)


25. Texas Third Party Debt Collector requires a $10,000 surety bond. (Apply with the Secretary of State, Registrations Unit)


26. Utah Collection Agency requires a $10,000 surety bond. (Apply with the Department of Commerce, Division of Corporations and Commercial Code)


27. Washington Collection Agency or Out-of-State Collection Agency requires a $5,000 surety bond. (Apply with the Department of Licensing)


28. West Virginia Collection Agency requires a $5,000 surety bond. (Apply with the State Tax Department, Revenue Division)


29. Wisconsin Collection Agency surety bond amount is determined by the Department. (Apply with the Department of Financial Institutions)


30. Wyoming Collection Agency requires a $10,000 surety bond for each location. (Apply with the NMLS)

Instead of a surety bond, some states will accept another form of security.

What Will a Collection Agency Bond Cost?

The premium you pay for a Collection Agency or Debt Collector surety bond is dependent on credit and the bond amount required. Our rates start as low as $100 with good credit. Surety bond amounts over $50,000 will require business and personal financial statements. The surety bond professionals at SuretyGroup.com are dedicated to finding you the lowest rate available, as quickly as possible.

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