Connecticut Collection Agency Bond Overview
- Purpose: To protect people from harm if a collection agency breaks licensing regulations
- Who Needs It: All debt collectors and consumer collection agencies in Connecticut
- Regulating Body: The Department of Banking, Consumer Credit Division
- Bond Amount: $50,000
- Minimum Price: $300–$500, credit-based
What Is a Connecticut Collection Agency Bond?
A Connecticut consumer collection agency bond is a $50,000 financial guarantee required by the Department of Banking.
It protects consumers by ensuring agencies operate legally, adhere to the Fair Debt Collection Practices Act, and properly handle funds.
Bond Coverage Requirements for Connecticut Debt Collectors
In Connecticut, you need $50,000 surety bond coverage for every consumer collection agency branch location.
This includes any person or entity engaging in the following activities:
- Third party debt collection
- Judgment recovery
- Passive debt buying
- Active debt buying (undertakes direct collections on accounts)
If you are only buying debt, you do not need a surety bond.
How Much Do CT Consumer Collection Agency Bonds Cost?
The $50,000 collection agency bond costs $300–$500 for most qualified applicants. Your application will be underwritten to determine your exact rate. Submit a quote request now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Connecticut Collection Agency Bond Work?
By purchasing a Connecticut consumer collection agency bond, you enter a three-party legal agreement.
| Bond Party | Description |
|---|---|
| 1) Principal | The collection agency owner filing the bond |
| 2) Obligee | The Connecticut Department of Banking, Consumer Credit Division |
| 3) Surety | The issuing surety provider |
These bonds ensure that collection agencies honestly account for all funds while doing business. The bond protects any person who is damaged up to the full bond amount.
As the principal, you must repay the surety in full for any paid claims up to the bond amount.
How Do I Get a Collection Agency Bond in Connecticut?
You can apply for your Connecticut collection agency bond in minutes.
- Start the online application
- Enter your NMLS license number and county location
- Receive your free quote
- Sign and pay online
Once your payment has been processed, the surrey will upload the electronic surety bond (ESB) to NMLS. You’ll get an email with instructions on how to authorize the surety.
How Do I File My Bond?
The surety will upload your bond directly to NMLS. After purchasing, you’ll need to go into your account and authorize the surety to file. Don’t overlook this step!
We’ll provide a post-purchase email with more instructions or you can read this NMLS Filing FAQ for more information.
How Do I Renew My Collection Agency Bond?
Connecticut collection agency bonds expire annually. You’ll get reminders to renew via email and text. Pay the renewal invoice before your bond expires if you plan to maintain your license for another year.
How Can I Update My Bond?
If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change. The most common changes requested are updating the following information to match your licensing paperwork:
- Name
- Business address
- NMLS license number
How to Get a Consumer Collection Agency in Connecticut
To become a licensed collection agency you must be able to document:
- $50,000 minimum net worth, proved with CPA-prepared financial statements
- $50,000 bond coverage per branch location
You’ll complete the license application in the Nationwide Multistate Licensing System (NMLS). Any control persons will need to complete a criminal background check and submit a credit report.
There are also several document upload requirements, including:
- Financial statements
- Document samples
- Organization chart
- Formation documents
- Management chart
- Disclosure question form, if applicable
How Much Does It Cost to Get Licensed?
You’ll pay $620 licensing and processing fees. There are also fees for the credit report and background check for all control persons.
- Application fee: $100
- License fee: $400
- NMLS initial processing fee: $120
- MU2 credit report: $15 per individual
- MU2 FBI background check: $36.25 per individual
Licenses expire at the close of business on September 30 of every odd year, unless renewed.
