Collection Agency Surety Bonds

What is a collection agency surety bond?

A collection agency bond protects the public against harm resulting from illegal or unethical practices. The bond communicates that your collection agency is under obligation to operate in an ethical and professional manner when collecting a debt from an individual or company. If your business operates in the state of Maryland, you’ll know this type of bond as a “collection agency licensee surety bond."

Why do I need a collection agency surety bond?

Most states require collection agencies to be properly bonded before they can receive their business license. As a debt collector, you are operating a high-risk business; a surety bond helps you establish credibility and assists in ensuring compliance with industry regulations.

Your debt collector bond also protects consumers by allowing claims against the bond in the event that you are unable to pay a claim directly yourself. The bonding company will seek reimbursement for any claims paid by the bond.

Get Your Collection Agency Surety Bond


How much does a collection agency bond cost?

The cost to get a bond for a collection agency varies from state to state and can also vary based on your credit rating. In general, premiums for most states range from $100 to $500, which covers bond amounts ranging from $5,000 to as much as $50,000.

Cost of Collection Agency Surety Bonds
State Bond Amount Cost
(Annual Premium)
Alaska $5,000 $100
Arizona $10,000-$30,000 $100-$350*
Arkansas $10,000/$20,000/$25,000 $100/$200/$250*
Colorado $12,000–$20,000 Varies*
Connecticut $25,000 per location $250*
Florida $50,000 $500
Idaho $15,000 $150
Indiana $5,000 $100
Maryland $5,000 $100
Massachusetts $25,000 $250*
Michigan $5,000-$50,000 $100-$500*
Nevada $10,000-$50,000 $100-$500*
New Jersey $5,000 $100
New Mexico $5,000 $100*
North Carolina $10,000 $100
North Dakota $50,000 $500*
Oregon $10,000-$15,000 $100-$150*
Tennessee $15,000-$25,000 $150-$250*
Utah $10,000 $100
West Virginia $5,000 $100
Wisconsin $25,000/$35,000 $250/$350*
Wyoming $10,000 $100

* Cost can vary depending on the bond amount required and your credit rating

How can I qualify for a collection agency surety bond?

In general, collection agency bond requirements are fairly straightforward. If you’re in the process of becoming a licensed collection agent and need a surety bond, follow these steps:

  1. Fulfill all state licensing requirements and obtain necessary documents, such as a business certificate and financial statements.
  2. Contact a credible bonding agency like NNA Surety Bonds.
  3. Apply for a free surety bond quote.
  4. Sign the contract and pay the premium.
  5. Receive your collection agent bond.

Get bonded in your state

To learn more about getting the surety bond required in your state, contact us! Just fill out our short contact form or call 855-215-2160.

What else should I know about starting a debt collection business?

Some states handle licensing directly, while others allow you to register via the National Mortgage Licensing System. Regardless of how your state handles debt collector licensing, we encourage you to visit the NMLS site when taking your first steps toward starting a collection agency.

Questions? Call NNA Surety Bonds at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)

Providing Bonds and Insurance Since 1957