Colorado Collection Agency Bond Guide
If you are applying for a collection agency license in Colorado, you'll need to purchase a surety bond. Read on to learn all about the Collection Agency Board license and bonding process.
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
- Required Amount: $12,000–$20,000, based on average annual collections
- Premium Rates: $10 per $1,000 of coverage
What is a collection agency bond?
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 $20,000. 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 does a collection agency bond cost in Colorado?
SuretyBonds.com offers Colorado collection agency board bonds for a flat rate of $10 per $1,000 of coverage, starting at $120. That means a $12,000 bond would cost $120 and a $20,000 bond would cost $200. Buy your bond in minutes now.
Why do I need this bond?
Colorado debt collector bonds protect clients who placed debts with the collection agency for collection but did not receive remittances of money collected. Specifically, the bond ensures that the agency:
- accounts for and pays the proceeds of all collections less the charges for collection in accordance with the terms of the agreements made between the licensee and all of its clients
- turns over to its clients any notes, valuable papers, or evidence of indebtedness which might have been deposited with the licensee by its clients as required by law
- faithfully complies with all requirements of the Colorado Fair Debt Collection Practices Act and the rules and regulations of the Administrator
What’s the fine print?
Colorado collection agency board surety bonds remain continuous until canceled. If the surety decides to terminate the bond, the cancellation will go into effect 30 days after the receipt of notice by the administrator or on a later date stated in the notice.
How to become a collection agency in Colorado
To become a licensed collection agency in Colorado, applicants must submit the following materials:
- collection agency license application
- $500 investigation fee
- collections manager application
- notarized affidavit of citizenship/residency
- ID and/or completed waiver form
- financial statement for either individual, corporation, limited liability company or partnership
Full licensing information can be accessed via the "Additional Resources" section of this page.
Let us help you get the surety bond you need quickly, easily, and accurately. Connect with a surety specialist now!
Collection Agency Bonds Nationwide
Many collection agencies operate in multiple states, meaning they may be required to have multiple surety bonds. Get more information about other states’ collection agency bond requirements by selecting a state on the map below.
