This $25,000 bond is required to obtain and maintain a collection agency license in Illinois. It protects creditors (clients of the collection agency) if the agency fails to remit money it collected on their behalf. If the agency doesn't pay what they owe, creditors can file a claim against the bond to recover their f…
Overview
What it is.
This $25,000 bond is required to obtain and maintain a collection agency license in Illinois. It protects creditors (clients of the collection agency) if the agency fails to remit money it collected on their behalf. If the agency doesn't pay what they owe, creditors can file a claim against the bond to recover their f…
Who usually needs it
Collection agencies operating in Illinois that collect debts on behalf of creditors. Debt buyers are exempt from this requirement under Section 8.6 of the Illinois Collection Agency Act.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$25,000ObligeeIllinois Department of Financial and Professional Regulation (IDFPR)Bond classLicense BondCategoryFinancial ServicesBondIllinois Collection Agency BondPlain descriptionThis $25,000 bond is required to obtain and maintain a collection agency license in Illinois. It protects creditors (clients of the collection agency) if the agency fails to remit money it collected on their behalf. If …Who needs this bondCollection agencies operating in Illinois that collect debts on behalf of creditors. Debt buyers are exempt from this requirement under Section 8.6 of the Illinois Collection Agency Act.
FAQ
Common questions.
What is the Illinois Collection Agency Bond amount?
The Illinois Collection Agency Bond amount is $25,000. This bond is required under Chapter 225, Section 8 of the Illinois Compiled Statutes (ILCS) and must be submitted with your Collection Agency License Application to the Illinois Department of Financial and Professional Regulation (IDFPR). The bond must remain active for the entire term of your license.
Who is protected by the Illinois Collection Agency Bond?
The bond protects creditors who are clients of the collection agency. If a collection agency collects money on behalf of a creditor but fails to remit those funds to the creditor, the creditor can obtain a court judgment and file a claim against the bond to recover up to $25,000. The surety company backing the bond will compensate valid claimants, and the agency must then reimburse the surety.
Are debt buyers required to have an Illinois Collection Agency Bond?
No, debt buyers are exempt from the Illinois Collection Agency Bond requirement. If your company qualifies as a debt buyer under Section 8.6 of the Illinois Collection Agency Act, you do not need to post this bond. However, traditional collection agencies that collect debts on behalf of creditors must maintain the $25,000 bond as part of their licensing requirements.
