Arkansas Collection Agency Bond Overview
- Purpose: To ensure collection agencies report and pay their net proceeds and collections
- Who Needs It: All collection agency owners in Arkansas
- Regulating Body: The Arkansas Collections Agency Board
- Bond Amount: $15,000, $20,000 or $25,000 — based on amount of collectors
- Premium Price: $100, $200, or $250, respectively
What Is an Arkansas Collection Agency Bond?
An Arkansas collection agency bond, or debt collector bond, is a license requirement under the Collections Agency Board. This type of surety bond creates a financial guarantee to protect the state and the public if debt collectors are fraudulent or break laws.
Who Needs a Collection Agency Bond?
Any individual or business entity that collects debt on behalf of another party in Arkansas needs a collection agency license and bond. If you are collecting your own debts under your name, you don’t need a bond.
Bond Coverage Requirements for Arkansas Debt Collectors
The required Arkansas collection agency bond amount is based on the number of debt collectors the agency employs.
| Licensed Solicitors | Bond Amount |
|---|---|
| 1–5 | $10,000 |
| 6–12 | $20,000 |
| More than 13 | $25,000 |
How Much Do Collection Agency Bonds Cost in Arkansas?
Arkansas collection agency bonds cost a flat rate of 1%. You’ll pay $100 for the $10,000 bond, $200 for the $20,000 bond, or $250 for the $25,000 bond.
Select the bond amount you need to buy online in minutes.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Arkansas Collection Agency Bond Work?
By purchasing an Arkansas collection agency bond, you become the “principal” in a three-party legal agreement.
| Bond Party | Description |
|---|---|
| 1) Principal | The debt collection agency owner filing the bond |
| 2) Obligee | The Arkansas Collections Agency Board |
| 3) Surety | The issuing surety provider |
Under the bond, you are financially responsible for complying with the Fair Debt Collection Practices Act. If you harass consumers, or otherwise break these regulations, they can file bond claims.
The surety will validate and pay claims up to the bond amount. Then you must repay the surety provider.
How Do I Get a Collection Agency Bond in Arkansas?
Getting your Arkansas collection agency bond is simple. To buy your bond, complete the following steps:
- Apply for a free quote online
- Receive your quote within one business day
- Pay the premium and e-sign documents
- Upload the bond form with your license application
Find more details on how to submit your license application and bond form at the bottom of this page.
How Fast Can I Get My Bond?
You can purchase and receive your Arkansas debt collector bond all in under five minutes. Complete the online checkout then you’ll get your bond email almost instantly. Then, be sure to upload the digital bond form with your license application.
Don’t see your bond email right away? Please check your spam or junk folder.
How Do I Renew My Collection Agency Bond?
Simply pay your renewal invoice when prompted to extend your bond for another term. When you work with SuretyBonds.com, we’ll send you text and email reminders starting 90 days out.
If you close the business, you can request to cancel the bond or simply let it expire.
How Do I Update My Bond Information?
If minor information on your bond needs to be updated, such as the business name, contact your surety provider.
For current clients: Email [email protected] with the change request and we will issue you a bond rider amendment document if possible.
How to Get a Collection Agency License in Arkansas
You’ll apply for your Arkansas collection agency license online through the Enterprise Licensing & Permitting (ELP) portal. Follow these general steps:
- Create an ELP account
- Submit the Proposed Manager Information form
- Purchase a surety bond in the correct amount
- Fill out the online application. Attach the bond form, proposed manager info form, your org chart, and a list of corporate officers and shareholders.
- Pay the $125 license fee and $20 fee per registered collector.
Once you’re licensed, regularly update and pay the fee for any new solicitors or collectors.
How Much Does It Cost to Get Licensed?
There is a $125 Arkansas collection agency licensing fee. You’ll also pay $20 to register your proposed manager and $20 per collector or solicitor.
- Manager Registration Fee: $20
- Surety Bond Premium: $100–$250
- License Fee: $125
- Registration Fee: $20 per collector
You can expect to pay at least $165 for your license process.
