Arizona Collection Agency Bond Overview
- Purpose: To hold collection agencies financially accountable for unethical practices
- Who Needs It: All collection agencies operating in Arizona
- Regulating Body: The Arizona Department of Insurance and Financial Institutions
- Bond Amount: $10,000–$35,000
- Minimum Price: $100 for a one-year term
What Is an Arizona Collection Agency Bond?
An Arizona collection agency bond protects your clients and the state from unfair or misleading debt collection practices.
Anyone who solicits or collects claims owed in Arizona must be licensed and bonded with the Department of Insurance and Financial Institutions (DIFI).
Note: Depending on your operations, you may also need a separate Arizona debt management bond or Arizona telephone solicitation bond for licensing.
Bond Coverage Requirements for Arizona Collection Agencies
The DIFI calculates required bond coverage based on your gross annual income. There is a $10,000 minimum and $35,000 maximum.
| Gross Annual Income | Bond Coverage |
|---|---|
| ≤$250,000 | $10,000 |
| $250,001–$500,000 | $15,000 |
| $500,001–$750,000 | $25,000 |
| $750,001+ | $35,000 |
How Much Do Collection Agency Bonds Cost in Arizona?
In Arizona, the $10,000 collection agency bond costs a flat rate of $100 — no credit check required!
For higher bond amounts, we’ll review your financials to determine your personalized rate. Qualified applications can pay as low as $210 for a $35,000 bond.
Select your bond amount below for a free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Arizona Collection Agency Bond Work?
An Arizona collection agency bond creates a legal contract between these three parties.
| Bond Party | Description |
|---|---|
| Principal | The collection agency owner filing the bond |
| Obligee | The Arizona Department of Insurance and Financial Institutions requiring the bond |
| Surety | The issuing surety provider |
This bond is a financial guarantee to the DIFI that you’ll comply with Arizona Revised Statutes Title 32 Chapter 9. The following acts are prohibited:
- Using advertisements to sell claims as a way to pressure payment
- Failing to remit collected funds to clients within 30 days
- Altering or destroying records
- Improperly handling client funds
If you violate this law, you may cause financial harm to your clients or the state. Harmed parties can file claims against your bond to recover any losses. You’ll need to refund the surety for any claims paid.
How Do I Get a Collection Agency Bond in Arizona?
With SuretyBonds.com, you can start the bonding process online 24/7. Simply enter your information into the form on this page.
- The $10,000 bond is available for instant purchase. You’ll receive your official bond form by email in just minutes.
- Higher bond amounts require a quick credit check before purchase. We’ll send you your exact rate within one business day.
Be sure to include your bond form with your license application.
Can I Get Bonded With Bad Credit?
Yes, the minimum $10,000 bond doesn’t require a credit check! For higher amounts, we approve 99% of applicants through our bad credit bonding options.
How Do I Renew My Collection Agency Bond?
Arizona collection agency bonds expire annually. We’ll send you reminders by phone and email starting 90 days before expiration.
If your gross annual income has changed, you’ll need to contact your surety company to update your bond amount. Otherwise, simply pay the attached invoice to extend your bond for another year.
How Do I Update My Bond Information?
Your surety company can typically make small changes to your bond, such as name or address, through a bond rider. Larger updates may require a new bond form.
Current customers can email [email protected] with the updated information.
How to Get a Collection Agency License in Arizona
The Arizona Department of Insurance and Financial Institutions licenses all collection agencies in the state. To apply, follow these steps:
- Register your business with the state.
- Purchase a surety bond in the required amount.
- Complete the online application through NMLS.
- Schedule a fingerprinting session.
When applying, you’ll need to designate an active manager who will undergo a credit check. The FBI criminal background check is required for all direct owners and officers.
Arizona collection agency licenses expire on December 31 annually. The DIFI recommends completing the renewal process on NMLS by November 1.
How Much Does It Cost to Get an Arizona Collection Agency License?
You can expect to pay at least $1,906.25 to get a collection agency license in Arizona. This includes the following fees:
| Fee | Amount |
|---|---|
| Application Fee | $1,500 |
| NMLS Processing Fee | $120 |
| License Fee | $150+ |
| Background Check | $36.25 per person |
| Surety Bond | $100+ |
Your license fee will be prorated based on when you apply:
| Month Issued | Fee Amount |
|---|---|
| January–March | $600 |
| April–June | $450 |
| July–September | $300 |
| October | $150 |
| November/December | $750 (includes the following year’s renewal fee) |
When Does Debt Become Uncollectible in Arizona?
The statute of limitations in Arizona is six years. For installment accounts, it starts after the final payment date. For open accounts like credit cards, it starts from the first missed payment that isn’t resolved.
