Collect what’s owed — and remit what you collect.
The license bond for the debt-collection business
Many states require a surety bond before licensing a collection agency. It guarantees that you will remit the funds you collect to your creditor clients and follow state collection law — protecting both the creditors who hire you and the consumers you contact.
What a collection agency bond guarantees
The bond protects two groups: creditors, who are owed the funds you collect on their behalf, and consumers, who are entitled to lawful treatment under state collection law. If you fail to remit collected funds or violate the licensing statute, a claim can be made against the bond. It is separate from federal FDCPA compliance, which is not bonded.
Requirements and amounts vary by state
Roughly a third to half of states license and bond collection agencies, and the rules are inconsistent nationally. Amounts commonly range from about $5,000 to $50,000, sometimes scaled by in-state collection volume or the number of collectors. Small bonds are frequently flat-rated. We confirm whether your state requires one and the current amount.
Collection Agency Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. Select your state below for the specifics, or request a quote and we will confirm the exact requirement that applies to you.
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Hawaii
- Idaho
- Illinois
Frequently Asked Questions
Does my state require a collection agency bond?
It depends — roughly a third to half of states license and bond collection agencies, and requirements vary widely. Tell us where you operate and we’ll confirm whether a bond is required and the amount.
How much does a collection agency bond cost?
Amounts commonly run $5,000–$50,000. Smaller bonds are often flat-rated at a low minimum premium; larger amounts are priced as a small percentage of the bond, based on your credit.
Is this the same as FDCPA compliance?
No. The bond is a state licensing requirement that protects creditors and consumers. Federal FDCPA compliance is a separate legal obligation that isn’t bonded.
How do I get a collection agency bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.