What does a Massachusetts debt collection bond cost?
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!
Why do I need a collection agency/debt collector bond?
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
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 become 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:
- Register with the NMLS.
- Check the licensing and registration exemptions linked on the website.
- Pay all applicable fees listed on the Massachusetts state website when registering.
- 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
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.
