Michigan Collection Agency Bond

Michigan Collection Agency Bond Form

The Michigan Collection Agency Bond is a type of surety bond required to obtain a collection agency license in the state. The bond is a requirement of the Michigan Bureau of Professional Licensing. The minimum bond amount is $5,000 (initial licensing amount) with a maximum of $50,000. 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 Michigan Collection Agency Bond

Only one Collection Agency Bond application for all 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 Michigan Collection Agency Bond will be shipped to the applicant for the required original signature.
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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For a list of states that require collection agency bonds, visit our collection agency guide page.

Surety Bond Amount

In Michigan, the bond amount for collection agencies increases after the first year of operation and is based on the agency’s average monthly business. Here’s a breakdown of how it works:

  • First Year: All new collection agencies must obtain a bond of $5,000. This is regardless of their projected business volume.
  • Second Year and Beyond: The bond amount is determined by the Department of Licensing and Regulatory Affairs (DLRA) based on the agency’s average monthly business from the previous year. This information is reported on the agency’s annual report which they must file with the department.

There’s no specific formula laid out publicly, but the DLRA has the authority to set the bond amount within a range:

  • Minimum: $5,000 (same as the first year)
  • Maximum: $500,000

Here’s a hypothetical example:

  • Let’s say a collection agency in its second year reports an average monthly business of $20,000 on their annual report.
  • The DLRA might then set their bond amount at something like $25,000, which reflects the agency’s increased business volume compared to the first year.

Important Points:

  • The DLRA has discretion in setting the exact bond amount based on individual circumstances.
  • There’s no guarantee a specific agency’s bond amount will be directly proportional to their average monthly business.


If you’re unsure about the bond amount for your collection agency after the first year, it’s best to contact the Michigan Department of Licensing and Regulatory Affairs directly. They can provide guidance based on your specific situation. You can find their contact information on the Michigan government website https://www.michigan.gov/lara/bureau-list/bpl/occ/prof/collection.

Who Needs This Surety Bond?

Article 9 of Public Act 299 of 1980, as amended was created, to license and regulate collection agencies operating in Michigan. Article 9 defines a collection agency as a person that is directly engaged in collecting or attempting to collect a claim owed or due or asserted to be owed or due another, or, subject to subsection (2), repossessing or attempting to repossess a thing of value owed or due or asserted to be owed or due another arising out of an expressed or implied agreement. Collection agency does not include a person whose collection activities are confined and are directly related to the operation of a business other than that of a collection agency.

Michigan Collection Agency License 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:

  • Michigan Collection Agency Bond
  • License application
  • Supporting documents for application (listed on official page)
  • High school diploma or G.E.D.
  • At least 18 years of age
  • Passing score of PSI license exam
  • Licensing fees

All licensing fees are required by the obligee, not the surety company. For more licensing information, visit: Michigan’s government website.

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.

Collection Agency Bond Application

How to Get Your Michigan Collection Agency Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. 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.

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

Surety Bond Experts

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.

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