Massachusetts Collection Agency Bond Overview
- Purpose: To protect clients from potential collection agency fraud or illegal activity
- Who Needs It: Licensed debt collectors and agencies in Massachusetts
- Regulating Body: The Massachusetts Division of Banks
- Bond Amount: $25,000
- Minimum Price: $150; credit-based
What Is a Massachusetts Collection Agency Bond?
The Massachusetts Division of Banks (DOB) requires individual debt collectors and collection agencies to be bonded. Collection agency bonds ensure that debts are collected per Massachusetts Law and protect clients from fraud.
Who Needs a Collection Agency Bond?
Anyone who collects consumer debt as a third party must be licensed and bonded. Collectors and agencies must purchase a $25,000 surety bond to prove financial liability and maintain their license through the DOB.
How Much Do Collection Agency Bonds Cost in Massachusetts?
These bonds require underwriting, meaning factors like credit score, industry experience and financial statements impact the cost of the bond.
For applicants with good credit, Massachusetts collection agency bond premiums start at $150. Get a personalized quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Massachusetts Collection Agency Bond Work?
When you purchase a collection agency bond, you enter a three-party legal agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | The licensed debt collector |
| 2. Obligee | The Massachusetts Division of Banks |
| 3. Surety | The issuing surety provider |
If the principal fails to comply with laws and regulations, harmed parties can file a claim on the bond. The surety pays valid claims and the principal must then reimburse the surety.
How Do I Get a Collection Agency Bond in Massachusetts?
To get your Massachusetts collection agency bond complete the following steps:
- Apply for a free quote online
- Receive your quote within one business day
- Pay the premium through our secure portal
The surety will upload your bond to NMLS for you. Follow the instructions provided to authorize the surety in NMLS and become officially bonded.
Can I Get Bonded With Bad Credit?
SuretyBonds.com works hard to approve 99% of applicants. If you’re worried about having a lower credit score, read about our Bad Credit Bonding Program.
How Do I Renew My Collection Agency Bond?
Massachusetts collection agency bonds expire annually and are easy to renew. If you plan on maintaining your license, you’ll need to renew your bond as well.
A SuretyBonds.com representative will contact you within 90 days of the expiration date. Follow the instructions and pay your renewal invoice to extend your bond term.
How Do I Update My Bond Information?
We can update basic information on your surety bond, with a bond rider. Just email the necessary changes to [email protected] and a representative will assist with simple fixes. Or, they can issue a new bond form if needed.
How to Get a Debt Collector License in Massachusetts
To become a debt collector in Massachusetts, apply via the National Multi-State Licensing System (NMLS). Complete the following steps to get your debt collector license:
- Purchase a $25,000 surety bond
- Submit an application via NMLS
- Pay required fees
*Note: The DOB no longer accepts paper license/registration applications
If you are associated with a company, they may have different licensing instructions, so, check with your company before completing registration in NMLS.
Use the NMLS Licensing Checklist resource for more detailed information.
How Much Does It Cost to Get Licensed?
To get your Massachusetts debt collector license, you’ll pay at least $2,200 in fees. The total cost is outlined below.
| Fee Type | Fee Amount |
|---|---|
| License Fee | $1,000 |
| Application Fee | $300 |
| FBI Background Check | $36.25 |
| Investigation Fee | $300 |
| Credit Report Fee | $15 |
| NMLS Processing Fee | $120 |
| Surety Bond | $150+ |
*Note: Fees collected through NMLS are non-refundable.
