The Maryland Collection Agency Bond is a type of surety bond and is one of the requirements to obtain a collection agency license in the state. While the bond and license are a state requirement, the issuance and management of the license is performed by the Nationwide Mortgage Licensing System (NMLS). A Collection Agency License is required for any entity or person that engages directly or indirectly in the business of collecting for, or soliciting from another, a consumer claim; or collecting a consumer claim the person owns, if the claim was in default when the person acquired it. A collection agency also gives, sells, attempts to give or sell to another, or uses, for collection of a consumer claim, a series or system of forms or letters that indicates directly or indirectly that a person other than the owner is asserting the consumer claim; or employs the services of an individual or business to solicit or sell a collection system to be used for collection of a consumer claim.
The Collection Agency License authorizes the following activities:
- Active debt buying (undertakes direct collections on accounts)
- Consumer loan servicing
- First mortgage servicing
- First party debt collection
- Judgement Recovery
- Non-mortgage modifications
- Passive debt buying
- Private student loan servicing
- Repossession agency activities
- Repossession agent activities
- Subordinate lien mortgage servicing
- Third party debt collection
Typically, the bond amount is determined by factors such as the number of agency employees, how much revenue is expected, and the population the agency will be serving, among others. The bond premium (the cost to you) is only a small fraction of the bond amount. Surety1 works to get you the lowest possible premium for your bond.
- Required by: Maryland Commissioner of Financial Regulation
- Bond Amount: $5,000
- Renewable unless cancelled (filed electronically with the NMLS)
If this bond is to be cancelled, the obligee must be notified of the bond cancellation at least 60 days before the cancellation date. This bond guarantees that the principle will abide by all Maryland state laws outlined in the Maryland Code, section 7-101. The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Maryland Collection Agency Licensing Requirements
Surety1.com is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
- Maryland Collection Agency Bond
- Online license application
- Supporting documents for application (listed on official page)
- Principle information
- Business and employment history for each principle officer
- $700 license fee
All licensing fees are required by the obligee, not the surety company. For more licensing information, visit the NMLS Checklist .
How to obtain a Maryland 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, the Maryland Collection Agency Bond will be filed electronically by Surety1.com.
(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.
For a list of states that require collection agency bonds, visit our collection agency guide page.
How to Get Your Maryland Collection Agency Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.