Hawaii Collection Agency Bond Overview
- Purpose: To hold debt collectors financially responsible for upholding state laws
- Who Needs It: All collection agency owners in Hawaii
- Regulating Body: The Hawaii Department of Commerce and Consumer Affairs, PVL Licensing Branch
- Bond Amount: $25,000 for initial location, $15,000 for branch locations
- Minimum Price: $150, varies based on credit score
What Is a Hawaii Collection Agency Bond?
A Hawaii collection agency bond, or debt collector bond, is a license requirement for debt collection agencies under the Hawaii Department of Commerce and Consumer Affairs (DCCA).
This type of surety bond protects the state and the public if debt collectors break laws or regulations. This includes the federal Fair Debt Collection Practices Act (FDCPA) as well as state regulations. It provides financial security for any harm caused by a bonded debt collector.
How Much Do Collection Agency Bonds Cost in Hawaii?
You need a $20,000 surety bond plus a separate $15,000 bond for any additional branch locations. Hawaii collection agency bond premiums start at $150 for both coverage amounts.
Your exact rate may vary between 0.6% and 10% based on credit score. Select your bond amount below to request a free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Hawaii Collection Agency Bond Work?
Collection agency surety bonds are legally-binding contracts involving three parties: the principal, obligee and surety. In this contract, you, as the agency owner, are the bond principal.
| Bond Party | Description |
|---|---|
| Principal | The collection agency owner(s) filing the bond |
| Obligee | The Hawaii Department of Commerce and Consumer Affairs requiring the bond |
| Surety | The issuing surety provider |
As the principal, you promise to uphold Chapter 443B of the Hawaii Revised Statutes. This includes promptly accounting for and paying all net proceeds due on collections.
If you don’t, harmed parties can file claims on the bond for reimbursement. The surety pays those claims but you must repay the surety up to the full bond amount.
How Do I Get a Collection Agency Bond in Hawaii?
Follow these quick steps to get your Hawaii collection agency bond:
- Submit an online quote request
- Receive your free quote within one business day
- Complete the bond purchase online
- Select your shipping method
- File the bond with the DCCA
Lastly, mail the original bond form to the DCCA as instructed.
How Fast Can I Get My Bond?
You’ll receive your quote in one business day or less. Then, you can pay for the bond anytime and select your shipping speed. We offer overnight, two-day and three-business-day FedEx shipping options ($20–$40).
Can I Get Bonded With Bad Credit?
You can often still get a collection agency bond without excellent credit. However, if approved, you will likely pay a higher premium. Learn more about how credit score impacts bond prices here.
How Do I Renew My Collection Agency Bond?
Hawaii collection agency bonds expire annually after one full year. To renew, just pay your renewal invoice when prompted. You don’t need to file any new forms with the DCCA.
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 Start a Collection Agency in Hawaii
To conduct collection agency business in Hawaii, an agency must:
- Maintain an active business office in Hawaii
- Designate a principal collector to assume the responsibility for the direct management and control of the operation of the office
Complete these steps to legally register your collection agency:
- File a $25,000 bond for the first office and $15,000 for each branch
- Pay appropriate fees
- Submit the application with all supporting documents
Use the DCCA licensing resources below for more information.
