If a state licensing board told you to get a collection agency bond, send us the requirement. We’ll identify the bond, check the amount and form, and tell you what the surety needs for a quote.
A collection agency bond is a surety bond that many states require as part of licensing collection agencies and debt collectors. It guarantees that the agency will follow the state’s collection licensing laws.
It depends on the state. Some states license collection agencies and require a bond, and others do not. Some also have rules for individual collectors or branch offices.
Check your state’s collection licensing requirements, or send us the paperwork from the board.
No. The bond is a financial guarantee tied to your license. It does not replace your obligation to follow federal and state debt collection laws. A compliance professional or attorney can help with those.
What the bond covers is set by the bond form and state law.
A lapse can create a licensing problem. What happens depends on the board and the bond wording.
Watch for renewal and cancellation notices, and ask us about renewals before the deadline.
You normally pay a premium for the bond, not the full bond amount.
Price usually depends on the bond amount your state sets, your credit, your financial and business history, and the surety company. Different surety companies can view the same agency differently.
It depends on the bond and the surety company. Many collection agency bonds are credit-based, and credit can affect both approval and price. If credit is an issue, tell us up front. Options can differ from one surety company to another.
Send the dealer licensing paperwork or the state’s bond instructions. The most useful items are:
It depends on the bond. Straightforward collection agency bonds can often be issued quickly when the form and applicant information are complete. Larger bonds or credit issues can take longer.
If you have a licensing deadline, tell us when you apply.
If this is not the bond you were asked for, these pages may help.
Yes. States differ on whether a bond is required, the amount, the form, and who the bond protects. Do not assume a bond for one state satisfies another state’s requirement.
Tell us what you’re applying for or send us the paperwork from the licensing board. We’ll take it from there.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208