The Indiana Collection Agency Bond is a type of surety bond required by the Indiana Secretary of State to obtain a collection agency license. The license application and license management, including the surety bond, are managed the Nationwide Mortgage Licensing System (NMLS) The term “collection agency” means and includes:
- All entities engaging directly or indirectly and as a primary or secondary object, business, or pursuit, in soliciting claims for collection, or in the collection of claims owed or due or asserted to be owed or due to another, including child support arrearages under IC 31-25-4.
- Any entity who sells, furnishes, or maintains a letter or written demand service, including stickers or coupon books, designed for the purpose of making demand on any debtor on behalf of any creditor for the payment of any claim wherein the person furnishing or maintaining such letter or written demand service, including stickers or coupon books, shall sell such services for a stated amount or for a percentage of money collected whether paid to the creditor or to the collection agency, or where such services may be rendered as a part of a membership in such collection agency regardless of whether or not a separate fee or percentage is charged.
- Any individual, firm, partnership, limited liability company, or corporation who uses a fictitious name, or any name other than the individual’s or entity’s name, in the collection of accounts receivable with the intention of conveying to the debtor that a third person has been employed.
Out of State Licensing
The secretary of state will usually issue a license to any person who holds a valid license to operate a collection agency issued by another state or state agency if that state has a reciprocal license agreement. An Indiana Collection Agency Bond must still be provided to obtain the non-resident license. A nonresident collection agency that has only incidental contact with a debtor is not required to be licensed under this chapter. Incidental Contact means contact on behalf of nonresident creditors using interstate communications, including telephone, mail service, or fax transmissions.
- Required by: Indiana Secretary of State, Filed electronically with the NMLS.
- Bond Amount: $5,000 per office registered in Indiana
- Valid: Continuous – Renewable
This bond guarantees that the principle will abide by all Indiana state laws and regulations outlined in the Indiana Code #25-11. Since this bond is continuous, it is in full force and effect until cancelled. If the bond is cancelled, the obligee must be notified of the cancellation at least 60 days before the cancellation date.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Indiana Collection Agency Licensing Requirements
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
- Surety bond
- Online license application filed through NMLS
- NMLS registration
- Supporting documents for application (listed on official page)
- $100 main office filing fee +$30 for each branch office
All licensing fees are required by the obligee, not the surety company. Licenses must be filed with the obligee through the Nationwide Mortgage Licensing System (NMLS). License/registration applications mailed to the obligee are not accepted.
How to obtain a Indiana Collection Agency Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, Surety1 will file the Indiana Collection Agency Bond electronically with the NMLS. Surety1.com offers 1 application for multiple state collection agency surety bonds. For a list of states that require collection agency bonds, visit our collection agency guide page.
(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.