Effective January 1, 2022 the state of California will require that all collection agencies in the state obtain a CA-DFPI Debt Collection License and be bonded. The California Collection Agency Bond in the amount of $25,000 is required as part of the application process. The application as well as the surety bond will be processed through the Nationwide Mortgage Licensing System (NMLS).
The following persons are required to obtain a license to engage in the business of debt collection in California pursuant to the Debt Collection Licensing Act :
If you are a licensed collection agency in another state, you will still be required to become licensed in California and obtain a California Collection Agency Bond.
The license allows the following activities on the state:
This is a type of Surety Bond. Debt collectors must submit with the license application and maintain a surety bond in a minimum amount of twenty-five thousand dollars ($25,000), payable to the Commissioner of the California Department of Financial Protection and Innovation (CA-DFPI) and issued by an insurer authorized to do business in California. Surety1.com only represents insurers authorized to do business in the state. The bond guarantees compliance with terms of the license. It is not insurance for the principal (collection agency) but is protection for the state and/or the people of the state of California.
At surety1.com we make it easy to apply for your California Collection Agency Bond:
Once these 3 simple steps have been completed, your California Collection Agency Bond will be filed electronically with the NMLS.
Surety1.com is located in the Sacramento area and is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Since 2003, Surety1 is the premier online provider of surety bonds nationwide and maintains an A+ rating from the Better Business Bureau.