Collection agency bond cost
The Illinois Department of Financial and Professional Regulation mandates that all collection agencies post a surety bond in the amount of $25,000. Your exact surety bond cost will depend on a review of your credit report.
Surety Bonds offers an exclusive bad credit bonding program through which we can approve 99% of applicants.
Why do I need this bond
The Illinois Collection Agency Act requires all collection agencies in the state to post a surety bond to complete the licensing process. A collection agency surety bond ensures that a collection agency adheres to the regulations and standards of the state. Should a collection agency fail to uphold these rules in such a way that causes verifiable financial loss by the people of the state, a claim may be made against the collection agency’s bond.
According to the Illinois Collection Agency Act (225 ILCS 425/8), “the bond shall be for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the agency to remit money collected on account and owed to the creditor.”
All collection agencies must adhere to the Illinois Collection Agency Act, but the law does not apply to debt collectors, including:
- Real estate brokers
- Retail stores collecting debts
- Homeowners’ associations
- Billing companies that only send account notices
Collection agency bond details
The following information must be provided on the bond form:
- FEIN (or SSN if a sole proprietorship)
- Whether the bond is for a renewal or new application
Collection agency bonds in Illinois are continuous until canceled. The state requires surety companies to provide the Department of Financial and Professional Regulation with at least 60 days’ notice before canceling a bond.
Become a collection agency
To register a new collection agency in Illinois, you must submit the following to the Department of Financial and Professional Regulation:
- Application for Registration
- Personal/Employment History
- Financial Statement
- Employee Identity Listing
- Branch Application (if applicable)
- $750 application fee
Apply for your surety bond
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