# Debt Collection and Accounts Receivable: compliance 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. ## License: Third Party Collection Agency License Third-party collection agency licensing in every state that conditions collecting for others on a license. Provided by Cornerstone Licensing: https://cornerstonelicensing.com/third-party-collection-agency-license ## License: Debt Settlement Company Licensing Debt settlement and debt management company licensing where a state conditions the license on registration. Provided by Cornerstone Licensing: https://cornerstonelicensing.com/debt-settlement-company-licensing ## Surety bond: Debt Collector Bonds Collection agency surety bonds posted to satisfy a state collection license condition. Debt collector surety bonds guarantee that a licensed commercial collection agency will follow state collection law and remit collected funds to clients. Provided by Cornerstone Surety Bonds: https://cornerstonesuretybonds.com/bonds/additional/debt-collector ## Surety bond: Debt Settlement Bonds Debt settlement and debt management bonds where a state conditions the license on a posted bond. A debt settlement bond is the surety bond states require of debt settlement and debt management companies. It guarantees the company will follow state debt adjusting law and handle consumer money honestly, and it returns prepaid fees to consumers if the company fails to perform. Provided by Cornerstone Surety Bonds: https://cornerstonesuretybonds.com/bonds/additional/debt-settlement ## Insurance: Insurance for Financial Services & Lenders Professional liability (E and O), cyber, and crime coverage tuned to the consumer financial data and client funds a collection operator handles. A coverage stack built for licensed lenders, mortgage originators, MSBs, and the firms supporting them. Provided by Covered by Cornerstone: https://coveredbycornerstone.com/insurance/industries/financial-services Requirements vary by state and activity. The license and bond pieces apply where your activity and jurisdiction require them.