Overview
A debt collector bond guarantees that a licensed collection agency will follow state collection law and remit collected funds to its clients. States require it as a condition of the collection agency license so consumers and creditors have a recovery path if the agency mishandles money or violates the rules.
State regulators set the required amount, which varies by state. Because the bond guarantees compliant conduct and proper handling of client funds, underwriting reviews the agency's financials and the owners' credit.
It is a surety bond that protects consumers and the agency's clients, not the agency. A paid claim is reimbursed to the surety under the indemnity agreement.
Who needs this bond
Licensed collection agencies in every state that conditions the agency license on a posted surety bond.
Typical amount and term
Bond amount set by state, commonly 5,000 to 100,000 dollars. Premium 1 to 3 percent of bond amount.
What this bond costs
Your premium is a small percentage of the bond amount, set by underwriting. The biggest drivers:
- The state-set bond amount
- The agency's two-year financials
- The owners' personal credit
- The states in which the agency is licensed
| Scenario | Bond amount | Estimated premium |
|---|---|---|
| Strong financials | $10,000 bond | around 1 to 2 percent per year |
| Average profile | $25,000 bond | around 2 to 3 percent per year |
| Higher state amount | $100,000 bond | priced as a percentage of the bond amount |
Figures are illustrative premium ranges, not quotes or statutory amounts. Your rate depends on the bond amount your obligee requires and your underwriting profile.
What you will need
- State of license and license number
- Two years of business financials
- Owner credit authorization
How to apply
- Send state and license details
- Receive a per-state quote within one business day
- Bond signed and filed with the regulator
How a surety bond differs from insurance
A debt collector bond is a surety guarantee that protects consumers and creditors, not the agency. It is not insurance on the agency's own losses. The bond backstops compliant collection practices and proper remittance of client funds.
Frequently asked questions
Who needs a debt collector bond?
Licensed collection agencies in states that condition the agency license on a posted surety bond.
How is the bond amount set?
By each state's regulator, so the required amount varies by state and the agency posts a bond in each licensed state.
What does the bond cover?
It gives consumers and creditors a way to recover up to the bond amount if the agency violates collection law or fails to remit funds.
What does the premium depend on?
Mainly the bond amount, the agency's financials, and owner credit. Stronger files earn lower rates.
Debt Collector bond by state
State-specific debt collector bond amounts, regulators, and requirements.
- Alabama →
- Alaska →
- Arizona →
- Arkansas →
- California →
- Colorado →
- Connecticut →
- Delaware →
- District of Columbia →
- Florida →
- Georgia →
- Hawaii →
- Idaho →
- Illinois →
- Indiana →
- Iowa →
- Kansas →
- Kentucky →
- Louisiana →
- Maine →
- Maryland →
- Massachusetts →
- Michigan →
- Minnesota →
- Mississippi →
- Missouri →
- Montana →
- Nebraska →
- Nevada →
- New Hampshire →
- New Jersey →
- New Mexico →
- New York →
- North Carolina →
- North Dakota →
- Ohio →
- Oklahoma →
- Oregon →
- Pennsylvania →
- Puerto Rico →
- Rhode Island →
- South Carolina →
- South Dakota →
- Tennessee →
- Texas →
- Utah →
- Vermont →
- Virginia →
- Washington →
- West Virginia →
- Wisconsin →
- Wyoming →
More additional bonds
Reviewed by the Cornerstone Surety bond team. Last reviewed 2026-06-17.