The Indiana Collection Agency Bond is a $5,000 surety bond required for each office location operated by a collection agency in Indiana. It protects consumers and creditors by ensuring the agency faithfully accounts for all money collected and remits payment to clients within 60 days (minus agreed-upon charges). If th…
Overview
What it is.
The Indiana Collection Agency Bond is a $5,000 surety bond required for each office location operated by a collection agency in Indiana. It protects consumers and creditors by ensuring the agency faithfully accounts for all money collected and remits payment to clients within 60 days (minus agreed-upon charges). If th…
Who usually needs it
Collection agencies operating in Indiana that collect debts on behalf of creditors must obtain this bond for each office location they operate in the state. This includes debt collection companies, collection agencies, and businesses engaged in collecting overdue accounts receivable.
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.
StateINBond amount$5,000ObligeeIndiana Secretary of State Securities DivisionBond classLicense BondCategoryFinancial ServicesBondIndiana Collection Agency BondPlain descriptionThe Indiana Collection Agency Bond is a $5,000 surety bond required for each office location operated by a collection agency in Indiana. It protects consumers and creditors by ensuring the agency faithfully accounts for…Who needs this bondCollection agencies operating in Indiana that collect debts on behalf of creditors must obtain this bond for each office location they operate in the state. This includes debt collection companies, collection agencies, …
FAQ
Common questions.
Who needs an Indiana Collection Agency Bond?
Any business operating as a collection agency in Indiana must obtain a $5,000 surety bond for each office location in the state. This includes debt collection companies that collect overdue accounts, unpaid debts, or delinquent obligations on behalf of creditors. The bond is required as part of the licensing process through the Indiana Secretary of State Securities Division and must be filed via the NMLS (Nationwide Multistate Licensing System).
What does the Indiana Collection Agency Bond cover?
The bond protects consumers and creditors by guaranteeing that the collection agency will faithfully account for all money collected and remit payment to clients within 60 days of collection (minus any agreed-upon fees or charges). If the agency misappropriates funds, fails to remit payments, or violates Indiana Code 25-11-1-4 requirements, damaged parties can file a claim against the $5,000 bond to recover their losses.
What happens if I cancel my Indiana Collection Agency Bond?
If you or your surety company cancel the bond, 30 days' written notice must be provided to both the collection agency and the Indiana Secretary of State. If the bond is not replaced within this 30-day period, your collection agency license will be automatically revoked. The bond must remain active continuously for as long as your license is in effect, so it's critical to maintain coverage or file a replacement bond before cancellation takes effect.
