How to Open a Collection Agency in Texas
This guide is for informational purposes only. SuretyBonds.com does not regulate or manage collection agency bonds in Texas. Contact the Texas Secretary of State for the latest official requirements.
How to Open a Debt Collection Agency in Texas
In Texas, debt collection agencies and credit bureaus don’t require a license or registration to operate. However, under Texas Finance Code Section 392.101, you must file a $10,000 surety bond with the Texas Secretary of State (SOS)—Registrations Unit.
Learn how to file your surety bond and maintain compliance with Texas debt laws in this complete guide.
Does Texas Require a Collection Agency License?
No, Texas only requires surety bond filing for collection agencies and credit bureaus. You don’t have to submit any other forms or pay a registration fee. However, you’ll still need to properly register your business, depending on its legal structure.
Attorneys collecting debt on behalf of a client are exempt from the bond requirement, unless they have non-attorney employees who perform either of the following actions:
- Regularly solicit debts for collection
- Regularly contact debtors for the collection or adjustment of debts
How Do I Open a Collection Agency in Texas?
To open a debt collection agency in Texas, follow these three steps:
Step 1: Register your business
First, determine your business’s legal structure. For sole proprietorships and partnerships, you’ll need to register with your local county clerk’s office. For corporations, file with the Secretary of State.
Step 2: Purchase a surety bond
Next, file a $10,000 surety bond. This bond protects debtors from fraudulent or negligent debt collection practices.
Purchase your Texas third-party debt collector bond online instantly for just $100 from SuretyBonds.com.
Step 3: File your bond
Lastly, submit the official bond form to the Texas SOS. You can mail it to the following address:
Registrations Unit
P.O. Box 13193
Austin, Texas 78711-3193
Or, you can deliver it in person to the following address:
James Earl Rudder Office Building
1019 Brazos St., 1 Floor
Austin, Texas 78701
If you need evidence of filing, submit two copies of the bond. The Texas SOS will return a file-stamped copy.
How to Renew Your Third-Party Debt Collector Bond
There is no license or registration renewal requirement, but your bond must remain active. Be sure to submit updated proof of your surety bond upon renewal, depending on your bond term.
If you purchased your bond from SuretyBonds.com, simply pay your renewal invoice when prompted.
How Much Does It Cost to Open a Texas Collection Agency?
You can expect to pay at least $400 to open a debt collection agency or credit reporting agency in Texas. This includes the following fees:
- Business entity registration: Varies by business type, typically $300 ($750 for professional associations and LPs)
- Bond premium: $100*
Be sure to also factor in business expenses such as rent, staff, marketing and other overhead costs.
*This reflects SuretyBonds.com debt collector bond rates for a one-year term. Purchase a multi-year term to save up to 25%.
Understanding the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) is the federal law governing debt collection practices. It prevents abusive, unfair, threatening and deceptive collection acts.
The FDCPA primarily controls communication between collectors and debtors. It regulates the following activities:
- Who you can talk to
- What your communication includes
- When you can contact a consumer
- Where you can contact them
- How you can communicate with them
Ensure that you’re compliant with the FDCPA at all times. Understanding the rules is important for protecting your business from costly violations and legal risks.
How Much Do Debt Collectors Make in Texas?
Debt collection agencies usually earn a percentage of the money they successfully recover for creditors. In Texas, the average salary for a full-time debt collector ranges from $35,000 to $50,000 per year. However, this can vary depending on location and experience.
Debt collectors are typically paid hourly, and many also earn commissions or bonuses based on performance. As an agency owner, your earnings have the potential to grow exponentially with the business.
Last Updated: December 19, 2025
