Oregon Collection Agency Bond Overview
- Purpose: To hold debt collection agencies financially responsible and protect debtors
- Who Needs It: Individuals and companies registering as an Oregon collection agency
- Regulating Body: The Oregon Department of Consumer and Business Services
- Bond Amount: $10,000 for in-state, $15,000 for out-of-state
- Minimum Price: $100 or 1%
What Is an Oregon Collection Agency Bond?
Oregon collection agency bonds ensure debt collection agencies follow state laws and rules. This type of surety bond protects debtors from fraud and financial loss if a collection agency’s causes harm.
Who Needs a Collection Agency Bond?
The Oregon Department of Consumer Business Services, Division of Financial Regulation (DFR) requires all collection agency owners to purchase a surety bond to prove financial responsibility.
Oregon recognizes licensed collection agencies as individuals or companies that collect third-party debts or repossess collateral.
Bond Coverage Requirements for Oregon Collection Agencies
There are two coverage amounts for Oregon collection agencies:
- $10,000 Bond: Has location and/or trust account in Oregon
- $15,000 Bond: Does not have location and/or trust account in Oregon
How Much Do Collection Agency Bonds Cost in Oregon?
Oregon collection agency bond prices vary depending on the coverage amount you need. For a $10,000 collection agency bond, you’ll pay a flat rate of $100.
The $15,000 coverage option is credit-based and requires underwriting. With great credit, you can get your bond for just $150!
Get your bond or apply for a quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Oregon Collection Agency Bond Work?
When you purchase an Oregon collection agency bond, you enter a three-party legal agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the collection agency owner |
| 2. Obligee | The Oregon Department of Consumer Business Services DFR |
| 3. Surety | The issuing surety provider |
If you break Oregon law, harmed parties can file a claim on the bond. The surety will investigate and pay for valid claims. Then, you must reimburse the surety for the damages.
How Do I Get a Collection Agency Bond in Oregon?
Follow these four steps to get the bond you need:
- Verify the bond coverage you need
- Apply for a quote, if applicable
- Pay for your bond
You’ll get email confirmation within minutes of completing your purchase.
How Fast Can I Get My Bond?
It depends! You can get a $10,000 collection agency bond instantly for just $100. However, the $15,000 coverage requires underwriting and can take up to one business day to get your bond.
How Do I File My Bond?
You’ll receive your bond digitally via email. Then, the surety provider will upload the bond on your behalf to the Nationwide Multistate Licensing System (NMLS).
You still need to authorize the surety provider in NMLS.
How Do I Renew My Collection Agency Bond?
Collection agency bonds expire annually and must be renewed to maintain your registration. You’ll receive email and text reminders starting 90 days before the expiration date.
Renew your bond by following the instructions in your renewal reminder. Or, call 1(800)-308-4358 and a SuretyBonds.com representative will assist you!
How Do I Update My Bond Information?
If you need to update basic information like name or address, you can do so through a bond rider. Email [email protected] the changes you need and a representative will help you.
How to Become a Registered Collection Agency in Oregon
With a collection agency license, you can perform the following business services:
- First party debt collection
- Third party debt collection
- Repossession agency activities
To register your Oregon collection agency, submit an application through NMLS. Include the following materials to apply:
- Completed MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Proof of business registration with the Oregon Secretary of State
- Financial statements
- A surety bond in the proper amount
- A completed criminal background and credit check form for each business owner, partner or manager
- $350 registration fee
If your company is registered out of Oregon, upload a Request for Waiver to waive both the trust account physical Oregon location requirement.
For more information on collection agency registration, refer to the Oregon DFR and the NMLS Licensing Checklists and Requirements.
How Much Does It Cost?
When registering your Oregon collection agency, you’ll pay $470 in fees — not including the bond premium. See the chart below for a cost breakdown:
| Fee Type | Cost Amount |
|---|---|
| Application Fee | $350 |
| NMLS Processing Fee | $120 |
| Surety Bond Premium* | $100+ |
*Surety bond premiums vary based on the required coverage amount.
What If I Have Multiple Branches?
You’ll need to register your collection agency branches in addition to your company application. Submit the following materials to NMLS for your branch registration:
- Completed MU1 and MU2 forms with all applicable documents attached in the Document Uploads section
- Owner Credit Report(s)
- Branch Manager Designation
There is no application fee for branch registration, however, you’ll pay a $25 NMLS processing fee. Double check the NMLS Licensing Checklists and Requirements for more detailed information.
