California now requires that all collection agencies be bonded in the amount of $25,000. This new bond requirement began on January 1, 2022. If the collection agency is also licensed and bonded in another state, this does not exempt them from the requirement, and they will need to obtain a bond in California to operate in the state. Our experienced and knowledgeable surety agents can help collection agencies navigate the bonding process. With The ProSure Group, obtaining a bond is quick and simple! Contact us today to learn more about CA Collection Agency bonds and obtain a free bond quote!
This surety bond aims to ensure collection agencies comply with the terms of their state license. Collection agencies must properly handle the money they receive and route it to outstanding debts appropriately. If an agency misappropriates funds, a claim can be filed against the bond. If the bond is paid out, the collection agency must reimburse the bond agency.
Pursuant to the Debt Collection Licensing Act of California, any person or persons engaged in debt collection on behalf of others or is a debt buyer must be licensed and therefore bonded.
California requires a collection agency bond amount of $25,000. For qualified applicants, this bond is relatively affordable and typically costs about one percent of the total bond amount. Collection agencies may require bonds in multiple states if they operate as such, therefore their total bond premium will vary based on the requirements of each state.
Contact The ProSure Group! Our team of trusted surety bond experts has over 23 years of experience and has partnerships with more than 30 different surety companies. We can answer your questions on CA Collection Agency bonds and work hard to get you the most competitive premium rate available. Contact The ProSure Group today or fill out our bond request form online, and one of our specialists will be happy to guide you through applying for a CA Collection Agency bond.
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|License||California Collection Agency bond||The Department of Financial Protection and Innovation
||$25,000||Get Bonded Now|