Arizona Collection Agency Surety Bond

What is an Arizona Collection Agency Surety Bond?

A Collection Agency Surety Bond is a legal financial guarantee required by the state of Arizona Dept of Insurance and Financial Institutions for  collection agencies to ensure ethical business conduct according to the state regulations. This bond acts as a safeguard for consumers against potential misconduct or fraudulent activities of collection agencies. It creates an environment of trust and accountability, fostering a sense of belonging among the consumers that their rights and interests are protected.

This surety bond functions as a binding agreement among three parties: the obligee (the state of Arizona), the principal (the collection agency), and the surety (the bond company). The principal purchases the bond from the surety, promising to comply with the standards and regulations set by the obligee. In case of any violation, the obligee can file a claim against the bond. As a result, the surety company is obligated to repay the obligee for any financial losses. It's important to note, however, that the principal is ultimately responsible for reimbursing the surety company.

How much does a Collection Agency Surety Bond cost in Arizona?

A bond in the form provided in section 32-1022 of the Arizona Revised Statutes, computed on a base consisting of the gross annual income of the licensee generated from all business transacted in this state by the licensee during the preceding year, in the minimum amount as follows:

Gross Annual IncomeMinimum Bond RequiredAnnual Bond Cost
Not over $250,000$10,000$100 (Instant Issue)
$250,001 - $500,000$15,000$150 (Instant Issue)
$500,001 - $750,000$25,000$250 (Instant Issue)
$750,001 and higher$35,000$350 (requires underwriting)


Who needs an Arizona Collection Agency Surety Bond?

The Arizona Collection Agency Surety Bond is required of “any person who directly or indirectly solicits claims for collection or collects claims owed, due or asserted to be owed or due to a third party.” (as stated by the Arizona Department of Insurance and Financial Institutions)

It is critical for these entities to understand their obligations under this bond, as failure to comply with its terms can result in potential claims and penalties. 

How do I get my Collection Agency Surety Bond for the State of Arizona?

Simply complete our online application for an AZ Collection Agency Bond, if your bond amount is $25,000 or less, your bond will be instantly approved and you will be taken to our payment page.  Once payment is made, out staff will issue your bond and email you a copy prior to sending out the original for you to sign and submit for your license.

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