Colorado Collection Agency Bond Overview
- Purpose: To protect collection agency clients from theft or financial loss
- Who Needs It: All licensed collection agencies, except for debt buyers, in Colorado
- Regulating Body: The Colorado Collection Agency Board
- Bond Amount: $12,000–$25,000, based on average annual collections
- Premium Price: $120–$250, 1% flat rate
What Is a Colorado Collection Agency Bond?
Colorado debt collector bonds protect clients who placed debts for collection but did not receive the money collected. It also protects Colorado debtors from harassment.
Specifically, the bond ensures that agencies:
- Account for and pay the proceeds of all collections based on agreement terms
- Turn over any notes, valuable papers, or evidence of indebtedness to its clients
- Comply with the Colorado Fair Debt Collection Practices Act and the rules and regulations of the Administrator
Who Needs a Collection Agency Bond?
The following entities need a Colorado debt collection bond:
- Collection agencies located in Colorado
- Collection agencies that collect or attempt to collect from Colorado residents or businesses
- Collection agencies that solicit debts from creditors in Colorado
- Creditors that collect their own debts using another name
You can open additional branch offices without increasing your bond coverage.
Collection agencies that collect debt for commercial, business, investment or agricultural purposes do not need a bond or license.
Bond Coverage Requirements for Colorado Debt Collectors
Debt collectors and collection agencies licensed in Colorado, other than debt buyers, must file a surety bond or assign a cash deposit in an amount between $12,000 and $25,000.
The bond amount varies depending on the average annual amount collected by the agency. Verify the amount of coverage you need with the state.
How Much Do Collection Agency Bonds Cost in Colorado?
A Colorado debt collection agency bond costs a flat rate of 1%. You’ll pay between $120 and $250 for a one year term based on your bond amount.
There is no application or credit check requirement. Simply checkout online and we’ll mail the physical bond form.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Colorado Collection Agency Bond Work?
By purchasing a Colorado collection agency bond, you enter a three-party legal agreement.
- Principal: The collection agency owner filing the bond
- Obligee: The Colorado Collection Agency Board
- Surety: The issuing surety provider
As the principal, you promise to uphold the Colorado Fair Debt Collection Practices Act (CFDCPA).
If you break any regulations, harmed parties can file claims on the bond. The surety will pay out claims up to the bond amount. You have to then repay the surety.
How Do I Get a Collection Agency Bond in Colorado?
Submit the quick, online application form. You’ll receive your personalized quote invoice within one business day or less.
You can checkout online at your convenience. We offer 1–3 day shipping options for the original bond form.
How Do I File My Bond?
You’ll sign and submit the original, physical bond form with your license application. Mail it to the Department of Banking at the address listed.
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 phone and email reminders starting 90 days out.
If you close the business, you can request to cancel the bond or simply let it expire.
Can I Make Changes to My Bond?
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 Colorado
The Colorado Department of Law manages collection agency licenses. You’ll need to gather and complete several documents to mail in your license application:
- Application form
- Personal Affidavit for every collection owner, partner, member or officer
- Collections Manager form
- Signed surety bond form
- Financial statement for the previous year
- Bank Account Information form
- Validation/First Notice sample document
- List of all debt collectors/solicitors
- Branch office list, if applicable
- License Verification form, if licensed in another state
- Debt Purchaser Agreement, if only buying debt
- Trade name documentation, if applicable
- Company formation documents
Attach all materials in a packet and mail to this address:
Colorado Department of Law
Consumer Credit Unit – Debt Collection
Ralph L. Carr Colorado Judicial Center
1300 Broadway, 6th Floor
Denver, CO 80203
Once your license is approved, you’ll pay a $1,100 license fee. Make both checks payable to: “Colorado Fair Debt Collection Practices Act.”
