Oregon Collection Agency Bond

The Oregon Collection Agency Bond is a type of surety bond required to register as a collection agency in the state. the registration is managed by the Nationwide Mortgage Licensing System (NMLS)

The Oregon Division of Financial Regulation registers individuals or companies that collect third-party debts or repossess collateral, such as a vehicle. Specifically, ORS 697.005 defines a collection agency as a person (or entity) that:

• Directly or indirectly solicits a claim for collection;
• Collects or attempts to collects a claim owed or asserted to be owed to a third party;
• Sells, offers to sell or furnishes forms represented to be a collection system, even if the creditor uses its own name in collecting the debt using the collection system;
• Uses a fictitious name or name other than their own to collect their own debt;
• Repossesses or attempts to repossess collateral due or asserted to be due to another person; or
• Collects claims from another person while using a name other than the usual business name of the party owed the debt and that tends to convey that a third-party has been engaged to collect the claim.

Oregon has a separate license for debt buyers. Passive debt buyers (not performing collections) need to be licensed but do not need to register as a collection agency. Active debt buys may need to register as a collection agency. There is no bond requirement for the debt buyers license.

How to Get an Oregon Collection Agency Bond

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, Surety1.com will file the electronic Oregon Collection Agency Bond directly with the NMLS.
^{1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the registration.} 

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.

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Surety Bond

• Required by: Director of the Department of Consumer and Business Services
• Bond Amount: $15,000 for a company located out of state that has no location or trust account in Oregon
• Bond Amount all others: $10,000
• Valid: Renewable – Renewable
• 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.

The Oregon Collection Agency Bond guarantees that the principle will abide by all Oregon state laws outlined in the Oregon Revised Statutes Chapter 697.  Since this bond is continuous, it is in full force and effect until cancelled. If it is cancelled, the obligee must be notified of the cancellation at least 30 days before the date of cancellation. The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.

Oregon Collection Agency Registration Requirements

Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.

State registration fees and requirements:

• Oregon Collection Agency Bond
• License application
• Supporting documents for application (listed on official page)
• $350 application fee
• List of branches
• Criminal background check
• Credit check
• Proof of business registration

All licensing fees are required by the obligee, not the surety company. Click here for a complete check list of the registration requirements. 

Here are the steps on how to start a collection agency business in Oregon:

1. Register with the Oregon Department of Consumer and Business Services.
2. Obtain a surety bond in the amount of $10,000 if you are located in Oregon, or $15,000 if you are located outside of Oregon.
3. Comply with the Fair Debt Collection Practices Act (FDCPA), the Oregon Collection Agency Act, and the Oregon Consumer Credit Protection Act.
4. Obtain a business license from the city or county where you will be operating your business.
5. Obtain insurance, such as errors and omissions insurance and liability insurance.
6. Hire and train employees, if necessary.
7. Market your business and start collecting debts.