Collection agency bond cost
Collection agencies licensed in Colorado , other than debt buyers, must file a surety bond or assign a cash deposit in an amount between $12,000 and $20,000. The amount of the bond varies depending on the average annual amount collected by the agency. Applicants should verify the amount of bond coverage they need with the state.
Surety Bonds offers Colorado collection agency board bonds for different costs depending on underwriting criteria. Since both the amount and price of this bond vary, connecting with a surety specialist is the best way to get a free quote for the collection agency bond you need.
Why this bond
Colorado debt collector bonds protect clients who placed debts with the collection agency for collection but did not receive remittances of money collected. Specifically, the bond ensures that the agency:
- Accounts for and pays the proceeds of all collections less the charges for collection in accordance with the terms of the agreements made between the licensee and all of its clients
- Turns over to its clients any notes, valuable papers or evidence of indebtedness which might have been deposited with the licensee by its clients as required by law
- Faithfully complies with all requirements of the Colorado Fair Debt Collection Practices Act and the rules and regulations of the Administrator
Collection agency board bond details
Colorado collection agency board surety bonds remain continuous until canceled. If the surety decides to terminate the bond, the cancellation will go into effect 30 days after the receipt of notice by the administrator or on a later date stated in the notice.
Become a collection agency
To become a licensed collection agency in Colorado , applicants must submit the following materials:
- Collection agency license application
- $500 investigation fee
- Collections manager application
- Notarized affidavit of citizenship/residency
- ID and/or completed waiver form
- Financial statement for either individual, corporation, limited liability company or partnership
- And more
Full licensing information can be accessed via the Additional information section of this page. Let us help you get the surety bond you need quickly, easily and accurately.
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