Colorado Collection Agency Bond

A Colorado Collection Agency Bond is a type of surety bond required by the Colorado Attorney General’s Office for collection agencies operating in the state. The bond amount varies from typically ranges from $12,000 to a maximum amount of $20,000. The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Colorado Collection Agency Bond

Only 1 collection agency application required for multiple states. At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Colorado Collection Agency Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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How to get a Collection Agency License

Acquiring a Colorado Collection Agency license involves several steps overseen by the Colorado Attorney General’s Office. Here’s a breakdown of the process:

1. Review Requirements:
   • Ensure your business meets the qualifications outlined in the Colorado Fair Debt Collection Practices Act (CFDCPA) https://coag.gov/office-sections/consumer-protection/consumer-credit-unit/collection-agency-regulation/.
   • At least one owner, manager, or executive officer must have experience in collections (minimum 2 years) as specified by § 5-16-119(1)(2)(I) and (II), C.R.S. https://coag.gov/office-sections/consumer-protection/consumer-credit-unit/collection-agency-regulation/general-information/.
2. Obtain Application Materials:
   • Download the “Collection Agency License Application Packet” from the Colorado Attorney General’s website https://coag.gov/licensing/collection-agency-regulation/. This packet includes instructions and necessary forms.
3. Complete the Application:
   • Carefully fill out the application forms, providing accurate information about your business structure, ownership, and personnel.
4. Secure a Colorado Collection Agency Bond:
   • The bond amount varies based on your projected annual collections (typically between $12,000 and $20,000). Refer to § 5-16-124(1), C.R.S. for details https://law.justia.com/codes/colorado/2022/title-5/article-16/section-5-16-124/.
5. Prepare Supporting Documents:
   • Gather required documents as listed in the application packet, such as financial statements, business formation documents, and fingerprints of key personnel.
6. Submit Application and Fees:
   • Submit the completed application package along with the following fees:
     • Non-refundable investigation fee of $500 (check payable to “Colorado Fair Debt Collection Practices Act”).
     • Licensing fee of $1,300 (check payable to “Colorado Department of Law”). Don’t send this until requested after your application is deemed complete.
7. Await Processing and Investigation:
   • The Attorney General’s Office will review your application and conduct a background investigation. You may be contacted for additional information.
8. License Issuance (if approved):

Upon successful completion of the process, you will receive your Colorado Collection Agency license.

Important Resources:

• Colorado Attorney General’s Office – Collection Agency Regulation: https://coag.gov/office-sections/consumer-protection/consumer-credit-unit/collection-agency-regulation/
• Colorado Collection Agency License Application Instructions: https://coag.gov/licensing/collection-agency-regulation/

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.