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How much does a collection agency bond cost in Connecticut?
The Connecticut Banking Commissioner requires collection agencies to post $25,000 surety bonds to be licensed to operate within the state.
These bonds are subject to underwriting, so the amount you’ll pay for your bond depends on a review of your personal credit history. Applicants with strong financial credentials could qualify to pay a rate as low as $150! Don’t let poor credit stop you from getting the bond you need. SuretyBonds.com approves 99% of applicants for their surety bonds, regardless of their financial credentials. Request a free bond quote now!
Call 1 (800) 308-4358 or submit a bond request to get started. Our experts make the bonding process fast and easy.
Why do I need a Connecticut collection agency bond?
Connecticut consumer collection agency bonds ensure that the principal (collection agency) truly accounts for all funds entrusted to it, as well as collected and received by it, during business conducted as a licensed collection agency. If the principal fails to conduct business ethically and lawfully, the bond protects any person who is damaged by the wrongful conversion of any creditor, consumer debtor, or property tax debtor funds held by the principal, up to the full amount of the bond ($25,000). The collection agency must reimburse the surety for all damages paid out.
Considerations for Connecticut collection agency bonds
Collection agency bonds in Connecticut are continuous until canceled. The surety can cancel the bond at any time by giving written notice of cancellation to the Commissioner of Banking via certified mail at least 30 days prior to the date of cancellation.
How to obtain a Connecticut collection agency license
To become a licensed collection agency in Connecticut, applicants must do the following:
- Review the jurisdiction-specific regulations for consumer collection agencies in Connecticut, as well as the state’s consumer collection licensing statutes.
- File your company record (Form MU1) for Connecticut through the NMLS.
- Provide financial statements prepared by a CPA.
- Submit your control persons record (Form MU2) and any relevant branch records (Form MU3) through the NMLS.
- Upload a business plan via NMLS noting the company’s fee schedule, marketing strategies, operating structure that you intend to employ, products, and target markets.
- Submit a Certificate of Authority/Good Standing Certificate from the Connecticut Secretary of the State as applicable.
- Provide document samples and formation documents, as well as a management chart.
- Post a surety bond.
The bond must cover the main office; each additional branch office location must be listed on the addendum. The name of the principal insured on the bond must match exactly the Full Legal Name of applicant, including Other Trade Names.
Mail the bond to Connecticut Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, CT 06103-1800.
- Submit a Connecticut Consumer Collection Agency License.
Email the license to the Connecticut Department of Banking at [email protected].
- Pay the associated licensing fees.
Connecticut license fee: $500
NMLS initial processing fee: $100
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.
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.