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.

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.

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).