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 commercial 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.
Debt Collector bond by the numbers
- US jurisdictions we track require a debt collector bond
- 38 of 52US jurisdictions we track require a debt collector bondSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Debt Collector bond cost index
- statutory bond amounts across the 38 states that publish one
- $5,000 to $50,000statutory bond amounts across the 38 states that publish oneSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Debt Collector bond cost index
- median statutory bond amount across those states
- $10,000median statutory bond amount across those statesSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Debt Collector bond cost index
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 requirements by state
The figures below are the ones that actually differ from state to state. Everything else about this bond, who needs it, what underwriting looks at, and how it is filed, is the same everywhere and is covered above.
In every state that requires the bond, it renews annually alongside the underlying license.
| State | Bond amount | Renewal fee | Regulator |
|---|---|---|---|
| Alabama | $5,000 | $250 | Alabama Department of Revenue |
| Alaska | $10,000 | $500 | Alaska Division of Banking & Securities |
| Arizona | $10,000 | $350 | Arizona Department of Financial Institutions |
| Arkansas | $10,000 | Not published | Arkansas Department of Financial Regulation |
| California | $25,000 | $275 | California DFPI |
| Colorado | $15,000 | $175 | Colorado Attorney General |
| Connecticut | $25,000 | $400 | Connecticut Department of Banking |
| Delaware | $25,000 | $500 | Delaware Office of the State Bank Commissioner |
| District of Columbia | $25,000 | $300 | DC Department of Insurance, Securities and Banking |
| Florida | $50,000 | $200 | Florida Office of Financial Regulation |
| Georgia | Not required | Not published | Georgia Attorney General (consumer protection) |
| Hawaii | $25,000 | $250 | Hawaii DCCA |
| Idaho | $10,000 | $250 | Idaho Department of Finance |
| Illinois | $25,000 | $300 | Illinois DFPR |
| Indiana | $10,000 | Not published | Indiana Department of Financial Regulation |
| Iowa | $10,000 | $100 | Iowa Attorney General |
| Kansas | Not required | Not published | Kansas Attorney General (consumer protection) |
| Kentucky | Not required | Not published | Kentucky Attorney General (consumer protection) |
| Louisiana | $10,000 | Not published | Louisiana Department of Financial Regulation |
| Maine | $10,000 | $200 | Maine Bureau of Consumer Credit Protection |
| Maryland | $5,000 | $200 | Maryland DLLR |
| Massachusetts | $25,000 | $350 | Massachusetts Division of Banks |
| Michigan | $10,000 | $300 | Michigan DIFS |
| Minnesota | $20,000 | $300 | Minnesota Department of Commerce |
| Mississippi | Not required | $250 | Mississippi Attorney General (consumer protection) |
| Missouri | Not required | Not published | Missouri Attorney General (consumer protection) |
| Montana | Not required | Not published | Montana Attorney General (consumer protection) |
| Nebraska | $10,000 | $100 | Nebraska Secretary of State |
| Nevada | $10,000 | $200 | Nevada Financial Institutions Division |
| New Hampshire | Not required | $200 | New Hampshire Attorney General (consumer protection) |
| New Jersey | $25,000 | $300 | New Jersey Department of Banking and Insurance |
| New Mexico | $5,000 | $150 | New Mexico Regulation and Licensing |
| New York | $25,000 | $500 | New York City DCA / NYS DFS |
| North Carolina | $10,000 | $400 | North Carolina Department of Insurance |
| North Dakota | $5,000 | $200 | North Dakota Department of Financial Institutions |
| Ohio | Not required | $500 | Ohio Attorney General (consumer protection) |
| Oklahoma | Not required | Not published | Oklahoma Attorney General (consumer protection) |
| Oregon | $25,000 | $300 | Oregon Division of Financial Regulation |
| Pennsylvania | $10,000 | Not published | Pennsylvania Department of Financial Regulation |
| Puerto Rico | $10,000 | Not published | Puerto Rico Department of Financial Regulation |
| Rhode Island | $5,000 | $200 | Rhode Island Department of Business Regulation |
| South Carolina | Not required | $200 | South Carolina Attorney General (consumer protection) |
| South Dakota | Not required | Not published | South Dakota Attorney General (consumer protection) |
| Tennessee | $10,000 | $300 | Tennessee Collection Service Board |
| Texas | $10,000 | $100 | Texas Secretary of State |
| Utah | Not required | $200 | Utah Attorney General (consumer protection) |
| Vermont | Not required | $200 | Vermont Attorney General (consumer protection) |
| Virginia | Not required | Not published | Virginia Attorney General (consumer protection) |
| Washington | $20,000 | $275 | Washington DFI |
| West Virginia | $10,000 | Not published | West Virginia Department of Financial Regulation |
| Wisconsin | $5,000 | $200 | Wisconsin Department of Financial Institutions |
| Wyoming | $5,000 | $150 | Wyoming Secretary of State |
State figures last verified August 3, 2026.
More additional bonds
The complete compliance picture
The debt collection and accounts receivable stack
Collection agencies, debt buyers, and accounts receivable operators carry three layers of compliance at once: the state collection agency license that lets them collect, the surety bond a regulator requires to hold that license, and the insurance program that covers the operation. Here is how the three fit together.
Reviewed by the Cornerstone Surety bond team. Last reviewed 2026-06-17. Last verified June 17, 2026.