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Massachusetts Collection Agency Bond

How much does a debt collection bond cost in Massachusetts?

The treasurer and receiver-general of the Commonwealth of Massachusetts requires debt collection agencies to post $25,000 surety bonds prior to conducting business.

These bonds are subject to underwriting, so the price you’ll pay depends on a review of your personal credit history. Qualified applicants could pay as low as $150 for their bonds. Request your free surety bond quote now!

Bond Type Bond Amount Cost*
$25,000 Collection Agency Bond $25,000 Starts at $150 GET A QUOTE

We can typically provide your free bond quote within 1 business day of submitting your application! Call 1 (800) 308-4358 or click here to get started.

Why do Massachusetts collection agencies/debt collectors need to be bonded?

Massachusetts collection agency bonds are put in place to ensure that principals (collection agencies) account for all funds collected for the person, partnership, association, or corporation firm to which the funds are due. Specifically, these bonds ensure that principals comply with all requirements of Sections 24 to 28 of Chapter 93 of the General Laws.

If the principal fails to comply with these terms, the bond covers any financial losses that occur as a result of the principal’s actions, up to the full bond amount. The principal must reimburse the surety for all damages paid out.

Examples of terms that the principal may fail to comply with include:

  • Fraud
  • Theft
  • Discrimination
  • Overcharging customers or misusing their money in any way

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Considerations for the Massachusetts debt collector bond

Collection agency bonds in Massachusetts remain in full force as long as the principal remains in compliance with the terms of the surety bond contract.

These bonds must be acknowledged by a notary public.

How to start a collection agency in Massachusetts

Applications for company or branch licenses or company registrations of collection agencies in Massachusetts must be filed with the Massachusetts Division of Banks through the Nationwide Multi-State Licensing System and Registry (NMLS).

*Please note that paper license/registration applications are no longer accepted.

Steps to take:

  1. Register with the NMLS.
  2. Check the licensing and registration exemptions linked on the website.
  3. Pay all applicable fees listed on the Massachusetts commonwealth website when registering.
  4. Apply online or by mail.
    • Online submission may be done through NMLS
    • Mail submissions may be sent to the following address:

      Massachusetts Division of Banks
      Loan Originator Licensing
      1000 Washington Street, 10th Floor
      Boston, MA 02118
      

Take the first step toward becoming licensed in Massachusetts by purchasing the collection agency bond you need quickly and easily!

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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.

NH VT RI NJ DE MD DC MA CT HI AK FL ME NY PA VA WV OH IN IL WI NC TN AR MO GA SC KY AL LA MS IA MN OK TX NM KS NE SD ND WY MT CO UT AZ NV OR ID CA MI

Or, choose your state from the list below:

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Additional Resources

Debt Collectors and Loan Servicers

Conduct of the business of debt collectors and loan servicers