Collection Agency Surety Bond
A Collection Agency Bond is a type of surety bond required for debt collection agencies to operate legally. This bond protects consumers and state regulators by ensuring collection agencies comply with applicable debt collection laws and ethical business practices.
Apply below, call our Commercial Department at 407-786-7770 or email us at [email protected]
Why You Need a Collection Agency Surety Bond
A Collection Agency Bond is required to:
- Protect consumers from unfair or abusive practices
- Ensure compliance with debt collection laws
- Meet state licensing and registration requirements
- Provide financial recourse for harmed consumers
- Build trust with regulators and clients
Operating without a required bond may result in fines, license suspension, or business closure.
Collection Agency Surety Bond FAQs
These are some of the most common questions asked about Collection Agency Surety Bond and how they work.
A Collection Agency Bond guarantees that a licensed collection agency will follow state and federal regulations, including fair debt collection standards. If an agency engages in unlawful practices, misappropriates funds, or violates licensing requirements, a claim may be filed against the bond.
These bonds are commonly required as part of the licensing or registration process for collection agencies.
Collection Agency Bond premiums typically range from $100 to $2,500 per year, depending on:
Required bond amount
State regulations
Agency financial strength
Claims history
Most bonds are low-cost and easy to obtain for qualified applicants.
Collection Agency Bonds involve three parties:
Principal: The collection agency
Obligee: The state licensing or regulatory authority
Surety: The bonding company issuing the bond
If the agency violates debt collection laws or licensing rules, a claim may be filed. The surety pays valid claims, and the agency must reimburse the surety.
Collection Agency Bonds are typically required for:
- Third-party debt collection agencies
- Accounts receivable management firms
- Businesses collecting debts on behalf of others
- Licensed collection agencies operating across state lines
Bond requirements vary by state and licensing authority.
Call us at 407-786-7770 or email us at [email protected]
What does a Collection Agency Bond cover?
It covers violations of debt collection laws, misrepresentation, and mishandling of collected funds.
Is a Collection Agency Bond required in every state?
Many states require them, but bond amounts and rules vary.
Is this the same as an FDCPA requirement?
No. The bond supports compliance but does not replace federal law requirements.
How long does a Collection Agency Bond last?
Most bonds are issued for one year and must be renewed annually.
Can one bond cover multiple states?
Usually no. Most states require state-specific bonds.