By Alexander Flores, Debt Buyer & Triton Financial Solutions, LLC · Level 2: Intermediate · Last updated: November 2, 2026
Most states that license collection agencies also make them post a surety bond before the license is issued. The amount ranges from a flat $5,000 to schedules that pass $100,000 for high-volume shops, and a few states tie the figure to trust balances, collections or headcount.
This reference table lists the bond rule in 20 states plus New York City. Each amount comes from the state statute, the regulator’s own page or the regulator’s bond form, and every link was checked live on November 2, 2026. For license triggers, exemptions and regulator contacts across all 50 states, use our state collection licensing map. This page covers the bond only.
What is a collection agency bond?
A collection agency bond is a license and permit surety bond. A surety guarantees the agency will follow state law and pay over money it collects. If it doesn’t, harmed clients or consumers can claim against the bond.
The Surety & Fidelity Association of America (SFAA) puts license and permit bonds in their own category: bonds required by state law, municipal ordinance or regulation before a business can obtain a license. Three parties are involved:
| Party | Role in a collection agency bond |
|---|---|
| Principal | The collection agency that buys the bond and must follow the law |
| Obligee | The state (or the regulator) that requires the bond, sometimes along with any harmed party |
| Surety | The insurer that pays valid claims, then seeks repayment from the principal |
The bond protects the public, not the agency. In some states it takes the place of a trust account guarantee for client money. The premium is set by the surety company, not the state, so this table lists only the required bond amount.
Which states require a collection agency bond, and how much?
Most of the states below require a bond. The amounts run from $5,000 (Washington) to tiered schedules above $100,000 (Wisconsin). Utah dropped its requirement in 2023, and Florida bonds commercial collectors only.
All sources were checked on November 2, 2026. “Regulator” means the agency that licenses or registers collectors in that state.
| State | Regulator | Bond amount (verified) | Notes | Official source |
|---|---|---|---|---|
| Arizona | Dept. of Insurance and Financial Institutions | $10,000 to $35,000 | Tiered by gross annual Arizona income: up to $250,000 = $10,000; $250,001–$500,000 = $15,000; $500,001–$750,000 = $25,000; over $750,000 = $35,000 | A.R.S. 32-1021 |
| California | Dept. of Financial Protection and Innovation | $25,000 minimum | The Commissioner may require more. The bond is filed through NMLS | Fin. Code 100019; DFPI |
| Colorado | Colorado Dept. of Law (Attorney General) | $12,000 to $20,000 | Adds $2,000 for each $10,000 by which average monthly client remittances exceed $15,000, up to $20,000. A savings account or CD can substitute | AG licensing page; C.R.S. 5-16-124 |
| Connecticut | Dept. of Banking | $50,000 per office | $50,000 for the main office plus $50,000 per branch. Agencies engaged solely in debt buying are exempt | C.G.S. 36a-802 |
| Florida | Office of Financial Regulation | No bond for consumer agencies; $50,000 for commercial | Consumer collection agency registration (§559.555) has a fee but no bond. Commercial collection agencies post $50,000 (§559.545) | §559.555; §559.545 |
| Idaho | Dept. of Finance | $15,000 to $100,000 | $15,000 at first license. At renewal, the greater of $15,000 or twice average monthly net collections, capped at $100,000 | Idaho Code 26-2232 |
| Illinois | Dept. of Financial and Professional Regulation | $25,000 | Debt buyers are exempt from the bond requirement (Sec. 8.6) | 205 ILCS 740/8 |
| Maryland | Office of Financial Regulation / State Collection Agency Licensing Board | $50,000 | The statute sets a range of $50,000 to $1,000,000 set by the Board. The OFR renewal advisory says the Board requires $50,000 for all licensees | Bus. Reg. 7-304; OFR advisory |
| Massachusetts | Division of Banks | $25,000 | The bond runs to the State Treasurer | M.G.L. c.93 §25 |
| Minnesota | Dept. of Commerce | $50,000 to $100,000 | At least $50,000, plus $5,000 for each $100,000 collected from Minnesota debtors (less commissions), capped at $100,000 | Minn. Stat. 332.34 |
| Nevada | Financial Institutions Division | $35,000 to $60,000 | $35,000 at application. Adjusted yearly by average monthly trust balance: $40,000 from $100,000, $50,000 from $150,000, $60,000 at $200,000 or more | NRS 649.105 |
| New York City | Dept. of Consumer and Worker Protection | $5,000 (limited) | Required only for agencies that collect child support payment debts | DCWP checklist |
| North Carolina | Dept. of Insurance | $10,000 to $30,000 | $10,000 at first permit. At renewal, one-sixth of the prior year’s collections less commissions, between $10,000 and $30,000. Nonresident agencies file an additional $10,000 bond | G.S. 58-70-20 |
| North Dakota | Dept. of Financial Institutions | $50,000 | NDCC 13-05-04.1 | |
| Oregon | Division of Financial Regulation | $10,000 or $15,000 | $15,000 for out-of-state agencies with no Oregon location or trust account. Filed as an NMLS electronic surety bond | DFR collection agencies |
| Tennessee | Collection Service Board | $15,000 to $25,000 | By headcount: 1–4 employees = $15,000; 5–9 = $20,000; 10 or more = $25,000 | TN Commerce & Insurance |
| Texas | Secretary of State | $10,000 | Third-party debt collectors and credit bureaus file the bond with the Secretary of State. There is no separate license | Fin. Code 392.101; SOS FAQ |
| Utah | Division of Corporations | No bond | Utah’s collection agency registration and bond ended May 3, 2023 (HB 20) | Utah Commerce |
| Washington | Dept. of Licensing | $5,000 | Out-of-state agencies bonded in their home state may be exempt. A cash deposit is allowed | RCW 19.16.190 |
| Wisconsin | Dept. of Financial Institutions | $25,000 to $290,000 | Scheduled by annual collections (see below). Add outstanding prepaid transmittals, and add $10,000 if Wisconsin records are kept out of state | DFI form LFS420 |
| Wyoming | Collection Agency Board | $10,000 | A $10,000 cash deposit with the State Treasurer can replace the bond | W.S. 33-11-108 |
States not in this table were left out because we did not confirm their bond rule from an official source on the check date. New York State outside New York City is one of them. Do not read a missing state as “no bond required.”
Which states set bond amounts by volume or size?
Arizona, Colorado, Idaho, Minnesota, Nevada, North Carolina, Tennessee and Wisconsin scale the bond. They use income, remittances, net collections, trust balances or employee count, so a growing agency should expect its bond to rise at renewal.
Wisconsin has the most detailed schedule. DFI form LFS420 (revised November 2025) bases the bond on annual collections, net of paid directs:
| Annual collections | Bond |
|---|---|
| Under $150,000 | $25,000 |
| $150,000 – $249,999 | $35,000 |
| $250,000 – $349,999 | $45,000 |
| $350,000 – $499,999 | $50,000 |
| $500,000 – $749,999 | $65,000 |
| $750,000 – $999,999 | $85,000 |
| $1,000,000 – $1,999,999 | $100,000 |
| $2,000,000 – $3,999,999 | $145,000 |
| $4,000,000 – $5,999,999 | $155,000 |
| $6,000,000 – $9,999,999 | $190,000 |
| $10,000,000 – $19,999,999 | $240,000 |
| $20,000,000 – $29,999,999 | $290,000 |
| $30,000,000 and over | Contact DFI |
Wisconsin law also lets DFI require a larger bond (Wis. Stat. 218.04).
Do debt buyers need a collection agency bond?
Sometimes. Illinois exempts debt buyers from its bond, and Connecticut exempts agencies engaged solely in debt buying. Elsewhere, a buyer that must hold a collection license usually posts the same bond. Check each state’s definitions.
This matters to anyone selling a portfolio. A buyer that collects in its own name, or places accounts with agencies, needs the right license in each state where the debtors live. Bonding is one of the easiest items to confirm, because many regulators publish licensee lists and NMLS Consumer Access shows license status for states that use NMLS. For which states license debt buyers at all, see our DebtHub buyer licensing guide.
How do you file a collection agency bond?
Buy the bond from a surety licensed in that state, in the required amount, using the state’s bond form. Then file it the way the regulator specifies: through NMLS, by mail, or with the Secretary of State.
Filing methods we confirmed:
| Filing method | Examples from the table |
|---|---|
| NMLS electronic surety bond (ESB) | California, Oregon, Wisconsin |
| State bond form filed with the regulator | Colorado, Illinois |
| Filed with the Secretary of State | Texas (Form 2901 through the SOS portal) |
| Cash deposit or CD allowed in lieu | Colorado, Idaho, Minnesota, Tennessee, Washington, Wyoming |
In states that use NMLS electronic surety bonds, the surety files the bond in NMLS and the licensee accepts it there. Otherwise, follow the regulator’s bond form and instructions exactly, including the obligee name.
Can a collection agency bond amount change after licensing?
Yes. Several states recalculate the bond at each renewal, and regulators can raise it. Nevada adjusts yearly by trust balance, Idaho and North Carolina recalculate at renewal, and California and Wisconsin may require more than the minimum.
Amounts also change by statute. North Dakota raised its bond from $20,000 to $50,000 in 2019. Connecticut raised its bond amounts in 2022 (P.A. 22-94). Maryland’s Board now requires $50,000, although the OFR’s general requirements page still showed $5,000 when we checked. When pages disagree, the statute and the regulator’s latest notice control, so confirm with the regulator before you buy the bond.
What does a bond not cover?
A bond is not insurance for the agency. It doesn’t cover the agency’s own losses, and the surety seeks repayment of any claim it pays. It also doesn’t replace the license, a trust account or errors-and-omissions coverage.
Some states also require a trust account for client funds, a net worth minimum, or a resident manager. Those rules are separate from the bond. Start with the licensing map for each state’s license posture and regulator link.
Where does a broker like DebtMarket fit?
DebtMarket is the confidential debt brokerage desk of Triton Financial Solutions, LLC. We are a debt marketplace, not a collection agency, so we do not hold collection licenses or bonds for collecting.
We connect sellers with more than 200 qualified buyers. Files are shared NDA-first, with no public auction, and complete files close in 1-14 days. Before a portfolio goes to a buyer, we look at the states in the file and the buyer’s licensing for those states. Sellers can start on our sellers page, and buyers can join the network from the buyers page.
Related reading on DebtMarket
- State collection licensing map: license posture, fees and regulator links for every state
- DebtHub buyer licensing: which states license debt buyers
- How to start a collection agency
- DebtHub: guides, data and tools for debt buyers and sellers
Selling a portfolio or buying accounts in a bonded state? Contact the DebtMarket desk for an NDA-first review.
Sources (each checked live on November 2, 2026)
- SFAA, “What is Surety?”: https://surety.org/surety-fidelity/what-is-surety/
- NMLS Electronic Surety Bonds: https://nationwidelicensingsystem.org/slr/common/esb/Pages/default.aspx
- Arizona DIFI, collection agencies: https://difi.az.gov/collection-agencies-dfi
- California 10 CCR 1850.50: https://www.law.cornell.edu/regulations/california/10-CCR-1850.50
- Colorado AG bond form: https://coag.gov/app/uploads/2026/02/CAR-Surety-Bond-2.26.pdf
- Idaho Department of Finance, collection agencies: https://www.finance.idaho.gov/consumer-finance-bureau/collection-agencies/
- Illinois IDFPR collection agency bond form: https://idfpr.illinois.gov/content/dam/soi/en/web/idfpr/forms/dfi/ccd/bd-col.pdf
- Massachusetts Division of Banks, debt collector license: https://www.mass.gov/how-to/apply-for-a-debt-collector-license-or-loan-servicer-registration
- Nevada FID, collection agency licensing: https://www.fid.nv.gov/licensing/collection-agency-collection-manager/
- North Carolina DOI bond calculation worksheet: https://www.ncdoi.gov/documents/agent-services/collection-agency-bond-calculation-worksheet
- Oregon ORS chapter 697: https://www.oregonlegislature.gov/bills_laws/ors/ors697.html
- Texas SOS Form 2901: https://www.sos.texas.gov/statdoc/forms/2901.pdf
- Utah HB 20 (2023): https://le.utah.gov/~2023/bills/hbillenr/HB0020.pdf
- Washington DOL collection agency forms: https://dol.wa.gov/professional-licenses/collection-agencies/forms-collection-agencies
- Wisconsin DFI collection agency licensing: https://dfi.wi.gov/Pages/FinancialServices/LicensedFinancial/CollectionAgency.aspx
- Wyoming Collection Agency Board: https://wyomingcollectionagencyboard.wyo.gov/home/collection-license-application
- Plus each statute and regulator page linked in the tables above
This article is general industry information for an Intermediate audience. It is not legal advice and is not a determination of whether you need a license or bond. Bond amounts change by statute, rule and regulator discretion, so verify the current requirement with the state regulator, and with counsel, before you apply or buy a bond.