You hold consumers' money to fix their debt. The bond protects them.
A licensing bond for debt settlement and management firms
Many states require debt settlement, debt management, debt adjusting, or credit-services companies to post a bond to be licensed. Because these firms often hold consumers' funds, the bond's purpose is to protect those consumers — guaranteeing honest handling of their money and compliance with the state's debt-services law.
What a debt settlement bond guarantees
The bond protects consumers and the state — guaranteeing the proper handling of consumer funds, delivery of the services promised, and compliance with debt-services licensing law. It is a consumer-protection guarantee, not insurance for your firm, and you reimburse the surety for any valid claim it pays. (A debt collection agency has its own separate collection agency bond.)
How much a debt settlement bond costs
The bond amount is set by the licensing authority. The premium you pay is a small percentage of that amount — typically around 1%–3% for applicants with reasonable credit, more for weaker credit — so a modest bond often costs a few hundred dollars a year. We market it to multiple surety companies to get you the best rate.
Requirements vary by state
Whether a bond is required, the amount, and the exact activity regulated (debt settlement, debt management, debt adjusting, credit services) vary by state — and amounts can scale with the number of consumers you serve or funds you hold. We confirm your exact requirement before quoting.
Debt Settlement & Collection Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. We are licensed in all 50 states; request a quote and we will confirm the exact requirement that applies to you.
Frequently Asked Questions
What does a debt settlement bond cover?
It covers consumers' losses from a debt-services firm's mishandling of their funds, failure to deliver services, or violation of the state's debt law. You reimburse the surety for any claim paid.
Is this the same as a collection agency bond?
No — a collection agency bond is for firms collecting debts owed to others. A debt settlement/management bond is for firms that help consumers resolve their own debts and often hold consumer funds. Some firms need one; some need the other.
How much does a debt settlement bond cost?
A premium that's a small percentage of the required bond amount, based on your credit.
How do I get a debt settlement & collection 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.