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M. BURR KEIM AGENCY · License & Permit Surety Bonds · Reviewed November 2026

Collection Agency Bond

A collection agency bond is a surety bond required by many states before a collection agency can be licensed. It gives consumers and the state a way to recover certain losses caused by a collection agency’s failure to follow state collection laws or account for money collected on behalf of creditors.

Apply for This Bond Online How to Apply Questions

At a glance

Product
Collection Agency Bond
Category
License & Permit Surety Bonds
Required amount
State collection agency licensing laws set the bond amount, and common amounts range from $10,000 to $25,000. Some states use a higher amount or a schedule based on the agency’s volume or the number of offices. Confirm the amount and obligee with the state regulator.
Online issue
Instant issue up to $25,000. With acceptable credit, instant issue is available above $25,000 up to $100,000. If the state requires a specialized bond form, the application may need underwriting review.
Term
Collection agency bonds are usually written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period or a continuous term. Follow the state regulator’s licensing instructions for the required term.

Who needs a collection Agency Bond?

  • Collection agencies applying for a state collection agency license that requires a surety bond.
  • Debt buyers and collection businesses adding a new state license or renewing an existing license.
  • Owners or compliance officers confirming the bond amount and obligee required by a state regulator.

Why is a collection Agency Bond required?

States license collection agencies to protect consumers from abusive or unlawful collection practices. The bond gives consumers and the state a recovery source when an agency violates the licensing law or fails to remit money collected for a creditor.

The bond is required as a condition of licensure and does not replace errors and omissions insurance, a fidelity bond, or the agency’s own compliance program.

How much bond do I need?

State collection agency licensing laws set the bond amount, and common amounts range from $10,000 to $25,000. Some states use a higher amount or a schedule based on the agency’s volume or the number of offices. Confirm the amount and obligee with the state regulator.

Instant issue up to $25,000. With acceptable credit, instant issue is available above $25,000 up to $100,000. If the state requires a specialized bond form, the application may need underwriting review.

Bond amount is not the premium. The required amount is the maximum the surety could pay under the bond. The premium you pay is a separate charge based on the bond amount, the risk, the term, and your credit. The online application shows the premium before you bind coverage.

How much does a collection Agency Bond cost?

Premium depends on the bond amount, the state, the license term, and the applicant’s credit. Collection agency bonds are typically inexpensive relative to the bond amount. Apply online for the current premium and the required term.

How to apply online

  1. Confirm the bond amount and obligee. Use the amount and legal name of the agency, court, client, or government entity that requires the bond. The obligee name must match the requiring party’s records.
  2. Gather the application information. Have the legal business or entity name, address, license or case number, ownership information, and the required bond amount ready.
  3. Start the CNA Surety application. Use the online application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency.
  4. Pay the premium and bind coverage. If the bond is eligible for instant issue, the application will show the premium and let you complete the purchase online. Otherwise, the surety will review the application and contact you if additional information is needed.
  5. File the bond. Provide the issued bond to the agency, court, client, or government entity that requires it, and keep a copy for your records.
Apply for This Bond Online All Bonds

Collection Agency Bond term and renewal

Collection agency bonds are usually written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period or a continuous term. Follow the state regulator’s licensing instructions for the required term.

Good to know

  • Some states require the bond to be filed with the regulator, while others require the agency to keep the bond and provide proof. Check the licensing instructions before applying.
  • If you are licensed in multiple states, you may need a separate bond for each state. The online application can be used for each requirement.

Collection Agency Bond questions

A collection agency bond is a surety bond required by many states before a collection agency can be licensed. It gives consumers and the state a way to recover certain losses caused by a collection agency’s failure to follow state collection laws or account for money collected on behalf of creditors.

Collection agencies applying for a state collection agency license that requires a surety bond. Debt buyers and collection businesses adding a new state license or renewing an existing license. Owners or compliance officers confirming the bond amount and obligee required by a state regulator.

Premium depends on the bond amount, the state, the license term, and the applicant’s credit. Collection agency bonds are typically inexpensive relative to the bond amount. Apply online for the current premium and the required term.

State collection agency licensing laws set the bond amount, and common amounts range from $10,000 to $25,000. Some states use a higher amount or a schedule based on the agency’s volume or the number of offices. Confirm the amount and obligee with the state regulator. Instant issue up to $25,000. With acceptable credit, instant issue is available above $25,000 up to $100,000. If the state requires a specialized bond form, the application may need underwriting review.

Apply online through CNA Surety using the application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency. Complete the application, pay the premium online if the bond is eligible for instant issue, and then file the bond with the agency, court, or client that requires it.

No. The license is the state’s authorization to operate as a collection agency. The bond is a separate financial guarantee required as part of the licensing process. Most states require both, and the bond must usually be in force before the license is issued.

The surety can generally cancel the bond by giving notice to the obligee, but the agency must usually replace the bond before cancellation to keep the license in force. Review the cancellation terms and the state’s requirements before requesting cancellation.

Online application and important note

Bond requirements, forms, amounts, and fees are set by the requiring agency, court, or carrier and can change. This page is general information, not legal advice. Confirm the current requirement with the agency, court, client, or your attorney before applying. M. BURR KEIM AGENCY is an insurance and surety bond agency; the bond or policy is issued by the carrier named on the document.