Wisconsin Collection Agency Bond Guide
All agencies soliciting payment for debt in Wisconsin must file a minimum $25,000 surety bond for licensing.
Bond Overview
- Purpose: To ensure collection agencies uphold state regulations
- Who Needs It: All collection agencies operating in Wisconsin
- Regulating Body: The Wisconsin Department of Financial Institutions
- Required Coverage: $25,000–$35,000
- Premium Rate: Credit-based, starting at 0.6%
Keep scrolling to learn more about the bonding process.
What Is a Wisconsin Collection Agency Bond?
A Wisconsin collection agency bond protects clients from harm due to fraudulent or negligent debt collection practices.
The Wisconsin Department of Financial Institutions (DFI) requires this type of license and permit bond for licensure.
How Much Do Collection Agency Bonds Cost in Wisconsin?
Wisconsin collection agency bond premiums start at 0.6% and vary based on credit score. Qualified applicants could pay just $150 for $25,000 coverage.
Select your bond amount below for your free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Wisconsin Collection Agency Bond Work?
A Wisconsin collection agency bond is a legal contract between three parties:
- Principal: The collection agency purchasing the bond
- Obligee: The Department of Financial Institutions requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold the provisions of WI Statute 218.04 and WI Act 267.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Collection Agency Bond?
in Wisconsin must file a surety bond for state licensure. This includes nonresidents who physically do business in the state.
You must file a $25,000 surety bond if all records are kept in Wisconsin. If any records are maintained out-of-state, you need a $35,000 bond.
How Do I Get a Collection Agency Bond in Wisconsin?
SuretyBonds.com provides the fastest and easiest way to get a collection agency bond. Follow these simple steps:
- Apply Online: Select your coverage amount and request a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
We’ll upload the bond directly to the NMLS on your behalf and email you a copy for your records.
How Fast Can I Get My Bond?
SuretyBonds.com issues collection agency bonds faster than any other provider. We process most bond applications same-day. Apply now to receive your free quote.
How Do I Renew My Collection Agency Bond?
Collection agency bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
To renew your bond, just pay the premium — we’ll do the rest!
How to Open a Collection Agency in Wisconsin
The Wisconsin Department of Financial Institutions requires collection agencies to hold a separate license for each place of business.
To apply for a license, submit the following forms via NMLS:
- Company Form (MU1)
- A personal balance sheet and income statement (for sole proprietors)
- Financial statements proving at least $15,000 in tangible net worth and $7,500 in net working capital (for businesses)
- Bank account information for Trust and Operating accounts
- Control Person Attestation (MU2) for executive officers and owners
- Identity Verification (IDV) and fingerprinting for all control persons
- Credit report for all direct owners
- Proof of the required surety bond
- Certificate of Status/Good Standing (if company was not formed in Wisconsin)
- Copies of third party contracts
- Flow of Funds Diagram/Description
- Management and Organizational Chart/Description
- Certificate of Authority from the Wisconsin DFI’s Division of Corporate and Consumer Services
- Business plan outlining management, marketing, services and fees
- Separate Location (Branch) Form (MU3)
Pay the following fees:
- Application fee: $1,000
- License registration fee: $200
- NMLS processing fee: $100 + $20 per branch
Once approved, you can view and print your license directly from NMLS. You will be responsible for renewing your license annually by December 31.
