Texas Third Party Debt Collector Bond

Why do I need a collection agency bond?

The Texas Secretary of State’s Registrations Unit requires all third party debt collectors to post $10,000 surety bonds. By posting this bond, third party debt collectors pledge to conduct business in accordance with the provisions of 392.001 of the Texas Finance Code. Specifically, this bond protects any person who is affected by a violation from financial loss up to the full amount of the bond.

Details of Texas debt collection bonds

Third party debt collector bonds in Texas remain effective continuously unless canceled. The principal (the collection agency) or the surety may cancel this bond by providing written notice to the Secretary of State at least 60 days prior to the effective date of the cancellation. If the cancellation is at the request of the surety, the surety must also provide the principal with written notification at least 60 days prior to the effective date of cancellation.

How to get a debt collection agency license in Texas

There is no actual license or registration requirement for Texas third-party debt collectors. The surety bond required by the secretary of state is what permits a third-party debt collector or credit bureau to begin engaging in debt collection.

Obtaining your actual bond can done online instantly with Suretybonds.com for $100. The physical bond can then either be mailed or physically turned in.

By Mail:

Registration Unit
P.O. Box 13193
Austin, Texas 78711-3139

In-person delivery:

James Earl Rudder Office Building
1019 Brazos, 1 Floor
Austin, Texas 78701

Ready to get started?

Additional Resources

Form 2901 - General Information (Third Part Debt Collector Surety Bond)

Texas Secretary of State Frequently Asked Questions for Third-Party Debt Collectors & Credit Bureaus

Finance Code Title 5. Protection of Consumers of Financial Services Chapter 392. Debt Collection