New Mexico Collection Agency Bond Overview
- Purpose: To ensure debt collectors conduct business ethically and follow regulations
- Who Needs It: Debt collectors and agencies in New Mexico
- Regulating Body: The New Mexico Regulation and Licensing Department, Financial Institutions Division (FID)
- Bond Amount: $5,000 to $25,000
- Minimum Price: $100
What Is a New Mexico Collection Agency Bond?
The New Mexico Regulation and Licensing Department requires debt collectors and agencies to purchase a collection agency bond. This type of surety bond ensures debt collectors follow state laws and protects debtors from malpractice.
Who Needs a Collection Agency Bond?
New Mexico collection agency bonds hold licensed collection agencies financially responsible. New Mexico classifies collection agencies as individuals or businesses who provide the following services:
- Active debt buying/direct collections
- Consumer loan servicing
- First party debt collection
- Judgment recovery
Who Is Exempt?
Entities that participate in the following activities do not need a collection agency license or surety bond:
- Officers or employees of a creditor collecting debts in the name of and for the creditor
- Person collecting debts for another person with common ownership/corporate affiliation when debt collection is not not their primary business
- Federal or state government officers/employees
- Legal process servers
- Non-profits providing consumer credit counseling and distributing debtor payments
- Attorneys-at-law
Bond Coverage Requirements for New Mexico Collection Agencies
New Mexico collection agencies must purchase a minimum $5,000 surety bond. Bond coverage ranges from $5,000 to $25,000 based on net proceeds from the prior 12 months and number of company branches.
Use the NMRLD Bond Calculation Worksheet to calculate the exact bond coverage you need. With less liquid assets, you’ll typically need a higher bond amount. Additionally, the bond amount must increase by $5,000 for each branch location.
Note: New and renewing license applicants must prove a company net worth of at least $10,000 and liquid operating assets of at least $1,000 through financial statements and balance sheets.
How Much Do Collection Agency Bonds Cost in New Mexico?
New Mexico collection agency bonds cost $100 to $250 for a one-year term. Exact rates vary based on the bond amount you need.
These bonds cost $100 for up to $10,000 coverage. For bond amounts greater than $10,000, your premium will be calculated as $10 for every $1,000 in coverage.
You can also save 25% by selecting a multi-year term. Get your bond today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Mexico Collection Agency Bond Work?
Collection agency bonds create a three-party contract agreeing that you will conduct business lawfully.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the licensed collection agency owner |
| 2. Obligee | The New Mexico Regulation and Licensing Department FID |
| 3. Surety | The issuing surety provider |
If you break contract terms, harmed parties can file a claim on the bond. The surety will pay for valid claims. Then, you must reimburse the surety for the damages.
How Do I Get a Collection Agency Bond in New Mexico?
To get your New Mexico collection agency bond, follow these easy steps:
- Verify the coverage you need
- Pay the premium
- Get your bond via email within minutes
- Submit your bond in NMLS
How Do I File My Bond?
New Mexico requires you to file your bond with your license application in the Nationwide Multistate Licensing System (NMLS).
To file your bond in NMLS, refer to the following resources:
How Do I Renew My Collection Agency Bond?
New Mexico collection agency bonds expire annually. You’ll need to renew your bond to maintain your license.
Starting 90 days before the expiration date, you’ll receive email and text reminders. Follow the instructions provided to renew your bond.
How Do I Update My Bond Information?
If you need to update basic information like name and address, contact our Customer Care team:
- [email protected]
- 1(800)-308-4358
A Suretybonds.com representative will make simple changes by issuing a bond rider. Or, assist you by issuing a new bond form.
How to Get a Collection Agency License in New Mexico
New Mexico collection agency license applications are processed through NMLS. To get your license, submit the following documents in NMLS:
- Completed MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Balance sheet and income financial statements prepared by a Certified Public Accountant from within 90 days of your fiscal year end
- Payment for applicable fees
Use the NMLS Licensing Checklists, Requirements, and Fees resource for more detailed information on the license process.
How Much Does It Cost To Get A New Mexico Collection Agency License?
When applying for your collection agency license, you’ll pay $720 in fees — not including the bond premium. See the chart below for a cost break-down:
| Fee Type | Cost Amount |
|---|---|
| Application Fee | $600 |
| NMLS Processing Fee | $120 |
| Surety Bond Premium* | $100-$250 |
*Surety bond premiums vary based on the required coverage amount.
