Collection Agency Bonds

Most states require an original signed and sealed bond to be posted; however, some states have begun to accept an electronic surety bond or an ESB in the Nationwide Multi-State Licensing System, otherwise known as NMLS. The states that will accept an ESB are Idaho, Indiana, Maryland, Massachusetts, North Dakota, Oregon, and Wyoming.

The bond amount vary from state to state depending on a variety of factors. Collection agencies are required to post a bond in the following states:

• Alaska – $5,000
• Arizona – Varies; $10,000 – $35,000
• Arkansas – $10,000 – $25,000
• Connecticut – $25,000
• Florida – $50,000
• Hawaii – $25,000
• Idaho – Varies; $15,000 – $100,000
• Indiana – $5,000
• Kansas (Supervised Lender)- $100,000
• Maine – $20,000
• Maryland – Varies; $5,000+
• Massachusetts – $25,000
• Michigan – Varies; $5,000 – $50,000
• Minnesota – Varies; $50,000 – $100,000
• Nebraska – Varies; $5,000 – $15,000
• Nevada – Varies; $35,000 – $60,000
• New Jersey – $5,000
• New Mexico – Varies; $5,000+
• Buffalo, New York – $5,000
• North Carolina – Varies; $10,000-$30,000
• North Carolina Department of Insurance – $10,000
• North Dakota – $50,000
• Oregon – Varies; $10,000 – $15,000
• The Commonwealth of Puerto Rico – $5,000
• Tennessee – Varies; $15,000 – $25,000
• Texas – $10,000
• Utah – $10,000
• Washington – $5,000
• West Virginia – $5,000
• Wisconsin – Varies; $25,000+
• Wyoming – Varies; $10,000+

The cost of the bonds vary depending on a variety of factors, such as the owners’ credit score, home ownership, and years in business. Sometimes, when individual indemnity is not provided, we may be able to get the bonds approved based on company financials. The premium is usually on an annual basis, but we also offer 2-year and 3-year term options. Some states require a specific expiration date, such as North Carolina expiring on June 30 of each year and Nebraska expiring on December 31 each year.

We also handle collection agency contract bonds, which are bonds that are required in a contract between a collection agency and a specific client.