Tennessee Collection Service License Bond Overview
- Purpose: To protect the public from fraud or contract breaches
- Who Needs It: All debt collection service owners registered in Tennessee
- Regulating Body: The Department of Commerce & Insurance – Collection Service Board
- Bond Amount: $15,000, $20,000 or $25,000 — based on employee count
- Premium Price: $150, $200 or $250 — based on amount
What Is a Tennessee Collection Service License Bond?
A Tennessee collection service license bond, or collection agency bond, is mandatory to register under the Collection Service Board.
This type of surety bond creates a financial guarantee to protect the state and the public if debt collectors are fraudulent, engage in malpractice, or break laws.
Who Needs a Collection Service License Bond?
In Tennessee, any person or business entity providing collection services in the state must be licensed with the Collection Service Board. All licensees need a minimum $15,000 bond, or larger if you have several employees.
This applies to anyone offering to collect debts or purchase debts for collection in exchange for compensation.
Bond Coverage Requirements for Tennessee Collection Agencies
Your bond amount will be $15,000–$25,000 based on the number of employees.
| Number of Employees | Bond Coverage | Bond Price |
|---|---|---|
1–4 | $15,000 | $150 |
5–9 | $20,000 | $200 |
10+ | $25,000 | $250 |
How Much Do Collection Service License Bonds Cost in Tennessee?
These bonds cost a flat rate of 1% for all applicants. The $15,000 bond costs $150, the $20,000 bond costs $200, and the $25,000 bond costs $200.
Buy your bond instantly online today. No application or credit check is required.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a TN Collection Service License Bond Work?
When you sign and file a Tennessee collection agency bond, you enter a legal contract between you, the surety and the Collection Service Board.
| Bond Party | Description |
|---|---|
| Principal | The collection service licensee filing the bond |
| Obligee | The Tennessee Department of Commerce & Insurance – Collection Service Board |
| Surety | The issuing surety provider |
Generally, the bond ensures that principals conduct business in accordance with the provisions of Title 62, Chapter 20 of the Tennessee Code Annotated.
If the principal conducts unlawful or unethical business, the bond protects consumers from financial loss up to the full amount of the bond.
How Fast Can I Get My Collection Service Bond?
You can purchase and receive your Tennessee collection service bond all in under five minutes. Complete the online checkout, then you’ll get your bond email almost instantly. Be sure to then file the bond form with your license application packet.
Don’t see your bond email right away? Please check your spam or junk folder.
How Do I File My Bond?
You’ll submit the signed, digital bond form with your online collection service license application.
How to Renew Your Bond
Tennessee collection service license bonds expire after one calendar year. To extend your bond for another one-year term:
- Pay your renewal invoice before the bond expires
- File the continuation certificate with the Board
When you work with SuretyBonds.com, we’ll send you email and text renewal reminders. The continuation certificate proves to the Board that you have an active bond for another year.
Can I Make Changes to My Bond?
If simple information on your bond needs to be updated, such as the business name, contact your surety provider.
Email [email protected] with the change request. We will issue you a free bond rider amendment document if possible.
How to Get a Tennessee Collection Service License
You can apply for a license from the Tennessee Collection Services Board online. Follow these six steps:
- Prepare financial statements with a CPA/PA
- Purchase a surety bond in the required amount
- Create a CORE account to apply online
- Start a new a collection service license application
- Upload required documents including the surety bond and financial statements
- Pay the $750 application fee
Find more information in the linked resources below.
