Washington Collection Agency Bond Overview
- Purpose: To hold debt collectors financially responsible for upholding state laws
- Who Needs It: All debt collection agency owners in Washington state
- Regulating Body: The Washington Department of Licensing, Collection Agency Section
- Bond Amount: $5,000
- Premium Price: $100 for a 1-year term
What Is a Washington Collection Agency Bond?
A Washington collection agency bond, or debt collector bond, is a license requirement for debt collection agencies under the Department of Licensing.
This type of surety bond creates a financial guarantee to protect the state and the public if debt collectors are fraudulent or break laws.
Who Needs a Debt Collector Bond?
Any business that collects debt on behalf of another party or purchases debt needs a $5,000 bond to operate in Washington. If you, the owner of the debt, or the debtor are located in Washington, you must have a collection agency license and bond.
Alternatively, you can make a $5,000 cash deposit. However, the state must hold that cash as collateral for your whole license term. With the surety bond, you just pay the $100 annual premium.
If you have no clients or offices in the state, you don’t need financial security to collect from Washington debtors.
How Much Do Collection Agency Bonds Cost in Washington State?
The $5,000 Washington debt collection agency bond costs a flat rate of $100 for a one year term. You can also save 25% and select a two-year term for $250.
There is no application or credit check requirement. Simply checkout online now and get your bond via email in minutes.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Washington Collection Agency Bond Work?
All surety bonds are legally-binding contracts involving three parties: the principal, obligee and surety. In this contract, you, as the debt collector, are the bond principal.
| Bond Party | Description |
|---|---|
| 1) Principal | The debt collection agency owner filing the bond |
| 2) Obligee | The Washington Department of Licensing |
| 3) Surety | The issuing surety provider |
By filing the bond, you agree to fulfill client agreements per state law. If you or other employed debt collectors engage in harassment, deception, and unfair practices, people can file bond claims.
Your issuing surety company will pay valid claims to harmed individuals up to your full bond amount, which you must reimburse
How Fast Can I Get My Bond?
You can purchase and receive your Washington state debt collector 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 Renew My Collection Agency Bond?
Simply pay your renewal invoice when prompted to extend your bond for another term. When you work with SuretyBonds.com, we’ll send you phone and email reminders starting 90 days out.
Depending on the term you select, you’ll need to renew every one, two, or three years for as long as you maintain your collection agency license.
If you close the business, you can request to cancel the bond or simply let it expire.
How Do I Update My Bond Information?
If minor information on your bond needs to be updated, such as the business name, contact your surety provider.
For current clients: Email [email protected] with the change request and we will issue you a bond rider amendment document if possible.
How to Open a Debt Collection Agency in Washington
You can apply for a Washington collection agency endorsement with the Business Licensing Service. Follow these basic steps:
- Complete the business license application with endorsements and fees.
- Complete the collection agency addendum form.
- Attach fee payment, surety bond form or cash deposit.
You can apply online or by mail. Find all the forms and instructions on the Department of Revenue’s website.
How Long Does It Take for Debt to Become Uncollectible in Washington?
There is a six year statute of limitations on debt in Washington state. This period starts on the date of the last payment or account activity. Partial payments can restart the timeline.
Once a debt expires, you can no longer legally sue for the debt. However, you can still contact the debtor to request payment.
