How much does a collection agency bond cost in Michigan?
Michigan collection agencies in their first year or those structured as a repossession company can purchase their surety bond for just $100. The amount an established collection agency in Michigan will pay for their surety bond is based on the balance of all debts collected the previous year and is subject to underwriting. Fill out a bond request to get a free surety bond quote.
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.
|Bond Type||Bond Amount||Cost|
|$5,000 Collection Agency Bond First-year companies||$5,000||$100|
|$10,000 Collection Agency Bond Reposession Companies||$10,000||$100|
|$10,001+ Collection Agency Bond Established companies||$10,001+||Starts at $100||GET A QUOTE|
If you’re ready to get bonded, call SuretyBonds.com at 1 (800) 308-4358 or submit your request now!
What is a collection agency surety bond?
According to Section 339.901 of the State of Michigan Legislature, a collection agency includes a person representing himself or herself as a collection agent or a person acting on behalf of a collection agency.
Michigan collection agency surety bonds hold the principal (collection agency) accountable for the reporting of accurate records of the accounts that he or she is collecting on. This specific bond also guarantees that collection agencies will not divert collected debt payments to unauthorized accounts or misuse any monies they have acquired for their clients. This bond also ensures that collection agencies will not engage in any activities associated with debt management companies or real estate brokers.
Michigan collection agency surety bonds are continuous in nature. The surety company must provide the Department of Licensing and Regulatory Affairs with 30 days’ notice prior to cancellation.
If you’re ready to get bonded, fill out our online bond request form.
How to become a licensed collection agency in Michigan
According to Article 9, 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
- is at least 18 years of age
- is of good moral character, to be determined by the department
Applicants trying to get licensed as a collection agency are required to take the following steps:
- establish if you are a owner manager or a non-owner manager
- promise to operate your business fairly and lawfully
- provide proof of purchase of surety bond
- complete the Collection Agency Manager Application
- pay mandatory fees
- upon approval of your application, you will be required to take the Collection Agency Manager Written State Examination proctored by PSI Exams
Each branch must furnish its own license for each separate physical location.
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.
Or, choose your state from the list below:
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia