Michigan Collection Agency Bond

How much does a collection agency bond cost in Michigan?

The amount of bond coverage needed for a collection agency in Michigan is based on the balance of all debts the principal (collection agency) collected in the previous year. Applicants entering their first year of business must post a surety bond in the amount of $5,000 since they have no previous collection balances.

The cost of this specific bond is typically credit based; however, collection agencies in their first year can purchase their bond for just $100 when they work with SuretyBonds.com. The amount an established collection agency will pay for their surety bond is subject to underwriting. Fill out a bond request to get a free surety bond quote by the end of the business day!

If you’re ready to get bonded, call SuretyBonds.com at 1 (800) 308-4358 or submit your request now!

What do I need to do first?

Depending upon the structure of the collection agency, you will need to furnish the following documentation.

For in-state agencies:

• proof of being the agency owner/sole proprietor
• certificate of assumed name
  • if the collection agency will be doing business under a name other than the owner’s, sole proprietors may obtain an assumed name certificate (known as a “D.B.A.”) from their local county clerk’s office

For partnerships:

• certificate of co-partnership
  • the certificate must include names, addresses and signatures of all partners
  • the certificate may be obtained from your local county clerk’s office
• the partnership’s assumed name certificate (if applicable)

For corporations and limited liability companies:

• Michigan corporation identification number
• assumed name certificate, if applicable

Our experts understand the nuances of Michigan collection agency surety bonds and are ready to answer any questions you might have. Fill out our online bond request form, and one of our specialists will get in touch with you right away to get you a free surety bond quote in 24 hours or less!

How to become a collection agency in Michigan

According to Article 9, section 911 of the Occupational Code, Act 299 of 1980, all applicants must meet the following minimum criteria:

• have a high school diploma, G.E.D or demonstrate to the satisfaction of the department that the applicant possesses the equivalent of a high school education
• have had at least 6 months of full-time experience in the business of account collection
• have passed the examination approved by the department
• is at least 18 years of age
• is of good moral character, to be determined by the department

Each branch must furnish its own license for each separate physical location. All applicants must pass the aforementioned exam consisting of 50 multiple choice questions and proctored by PSI Exams. Additional information on the exam may be found on the PSI Exams website.

Are you ready to get the bond you need? Our experts are on call and ready to answer all of your questions. Submit a bond request to speak with a live expert right away!

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.

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Additional Resources

Michigan Department of Licensing and Regulatory Affairs: Collection Agencies

Michigan Collection Agency License Application

Michigan Occupational Code: Act 299 of 1980, Article 9