North Carolina Collection Agency Bond Overview
- Purpose: To ensure collection agencies uphold state regulations
- Who Needs It: All collection agencies operating in North Carolina
- Regulating Body: The North Carolina Department of Insurance
- Bond Amount: $10,000 for initial licensing
- Minimum Price: $100
What Is a North Carolina Collection Agency Bond?
A North Carolina collection agency bond protects the public from harmful debt collection practices. The North Carolina Department of Insurance (NCDOI) requires all collection agencies doing business in the state to file a surety bond as financial security.
Bond Coverage Requirements for North Carolina Collection Agencies
All resident and non-resident collection agencies operating in North Carolina need a $10,000 bond for initial licensing. Nonresident agencies also need a second $10,000 bond form.
Your specific bond needs depend on where your company is incorporated, regardless of where you primarily do business.
| Incorporation Location | Bond(s) Required |
|---|---|
| North Carolina | Form CA-D1 ($10,000) |
| Nonresident U.S. State or Territory (Foreign) | Form CA-A1 ($10,000) and Form CA-A2 ($10,000) |
At renewal, your new bond amount will be calculated based on your total collections. Out-of-state applicants need to maintain the initial $10,000 bond plus a second bond based on total collections. Your maximum single bond amount will not exceed $30,000.
Note: Entities incorporated outside of the U.S. need two $20,000 bonds for initial licensing. At this time, we are unable to issue bonds for non-U.S. entities.
How Much Do Collection Agency Bonds Cost in North Carolina?
A $10,000 North Carolina collection agency bond costs a flat rate of $100 with no credit check required. Click below to buy your bond in minutes!
Higher bond amounts require a quick credit check to determine your exact rate. Select your bond below for a free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a North Carolina Collection Agency Bond Work?
A North Carolina collection agency bond is a legal contract between these three parties.
| Bond Party | Description |
|---|---|
| Principal | The collection agency owner purchasing the bond |
| Obligee | The North Carolina Department of Insurance requiring the bond |
| Surety | The issuing surety provider |
What is the Debt Collection Law in North Carolina?
In North Carolina, all collection agencies must comply with N.C. Gen. Stat. § 58-70-20. The following acts are prohibited:
- Adding extra fees, interest or charges
- Suing on debts past the legal time limit
- Lying about a debt’s amount or legal status
- Harassing or threatening debtors
If you violate this law, harmed parties can file claims to recover financial damages. The surety will pay valid claims up to the full bond amount. However, you ultimately need to refund the surety.
How Do I Get a Collection Agency Bond in North Carolina?
With SuretyBonds.com, you can start the bonding process online 24/7. The $10,000 bonds are available for instant purchase. For higher bond amounts, we’ll send you a personalized quote within one business day.
How Fast Can I Get My Bond?
For foreign bond forms, you’ll receive an electronic surety bond via email right after payment. For all other bonds, you can select overnight, 2-day or 3-day shipping for the physical bond form.
How Do I File My Bond?
The NCDOI no longer requires you to mail in your bond. Email your bond form to either [email protected] or [email protected]. You can also upload the form to your application in CLARUS.
Can I Get Bonded With Bad Credit?
Yes, the $10,000 collection agency bonds do not require a credit check! For higher amounts, we approve 99% of applicants through our bad credit bonding options.
How Do I Renew My Collection Agency Bond?
North Carolina collection agency bonds expire annually. We’ll send you renewal reminders starting 90 days before expiration. Once you pay the attached invoice, we’ll issue a continuation certificate to extend your bond for another term.
How Do I Update My Bond Information?
You can typically make small changes to your bond form, such as name or address, by contacting your surety company. You cannot update the bond form yourself.
Current customers: Email [email protected] with the new information.
How to Get a Collection Agency License in North Carolina
Complete the application online through CLARUS. You’ll need to upload the following documents:
- Personal questionnaire form
- Formation documents
- Certificate of Authority (foreign/alien only)
- Detailed method of collections
- Trust account bank statement
- Samples of correspondence to debtors
- Corporate financial statement
- Surety bond form(s)
- Payment for the $1,048 fee
Once you submit all the required information, the NC Licensing Office of PearsonVUE will conduct a preliminary review and notify you of any missing documents. The NCDOI will then conduct a regulatory review. Allow up to eight weeks for the entire process.
Can I Open Collection Agency Branch Locations?
Yes, but each must have its own individual license and surety bond. Complete a separate application for every location you plan to operate.
