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California Collection Agency Bond

Price Varies / 1 year term


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What Is a California Collection Agency Bond? 

A California collection agency bond is a type of license surety bond that ensures debt collectors follow industry rules and regulations. These bonds are required by the California Department of Financial Protection and Innovation (DFPI) to protect the public from financial loss due to unethical debt collection practices. 

How Do California Collection Agency Bonds Work?

California debt collector bonds create a legally-binding contract between three parties: 

  1. Principal: The bonded debt collector/collection agency (you)
  2. Surety: The surety provider (us)
  3. Obligee: The California Department of Financial Protection and Innovation

If a collection agency breaks industry laws and regulations, harmed parties can file a claim against the bond to recover damages. The surety provider will reimburse valid claims, but the principal is then liable for repaying the surety. 

Who Needs a Collection Agency Bond? 

Under the Debt Collection Licensing Act, all debt collectors and debt buyers in the state of California must apply for a debt collector license through the NMLS. There are some exemptions for certain depository institutions, including FDIC-insured banks and credit unions. 

How Much Do California Collection Agency Bonds Cost?

California debt collectors need to file a $25,000 surety bond. Most qualified individuals who apply on can expect to pay a premium of just 1%, or $250, for their bond policy.

If a low credit score increases your rate, don’t worry — you may be eligible for premium financing to help lower the upfront cost. 

How Do I Get a Collection Agency Bond in California? 

Bonding your collection agency is easy with Simply apply in two minutes using the form above. Our surety experts will provide the best available bond quote. 

Once you pay your invoice, we’ll electronically upload your bond to the NMLS on your behalf and email you a copy of the bond. 

Who Regulates Licensing for Debt Collection Agencies in California? 

The Department of Financial Protection and Innovation (DFPI) regulates collection agencies in California. The Debt Collection Licensing Program launched in 2021 to protect consumers and promote ethical debt collection practices. 

Use the CA-DFPI Collection Agency Application Checklist to prepare and submit all application materials through the NMLS. Submit any license-related questions to [email protected] or call (916) 327-7585.  

How Do I Renew My California Collection Agency Bond? 

You must maintain an active bond policy as long as you are operating a debt collection agency in California. The surety bond requires renewal every one to three years. 

We’ll contact you at the beginning of the renewal period to ensure you maintain your bonded status. Save time and money by requesting a multi-year bond term when you apply. 

Call 1 (800) 308-4358 to talk with a Surety Expert