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North Carolina Collection Agency Bond

  • Get your North Carolina collection agency bond online
  • Great bond rates
  • Bad credit bonding options

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What Is a North Carolina Collection Agency Bond?

In order to run a collection agency in North Carolina, you have to get licensed with the state Department of Insurance. Posting a collection agency bond is one of the main requirements for getting your North Carolina collection agency license.

Your bond protects the state and your customers from any fraud or misuse you may commit in your collection agency’s operations. A bond claim can be used to seek a financial compensation if a party has suffered damages as a result of your actions.

This North Carolina surety bond works like a contract between three parties. The principal is your collection agency that needs the bond. The Department of Insurance is the obligee, requiring the bond. The third party which backs your business financially is the surety.

Frequently Asked Questions

Who needs to obtain a bond?

Any entity in North Carolina that wants to operate as a collection agency needs a license from the state Department of Insurance. You have to submit a completed licensing application form. One of the criteria you need to meet, so that you are granted the right to run your activities, is to post a collection agency bond.

The bond protects your customers by ensuring your compliance with all applicable laws, including Article 70, Chapter 58 of the North Carolina Statutes. The bond should be active at all times during your licensing. The licensing period runes from July 1st to June 30th of every year.

How much do you have to pay to get bonded?

The bond amount that North Carolina collection agencies have to post is $10,000 for the first year of licensure. When renewing, you will have to post a different amount. It is equal to your yearly collections after subtracting any commissions, and multiplied by one-sixth. The maximum bond amount is $30,000. Collection agencies which are not based in North Carolina have to post bonds in amounts twice as large as those for in-state agencies.

Your bond premium is only a fraction of the amount that you have to obtain. For collection agency bonds, it is often between 1%-5%.

Surety Bond Cost Based on Credit Score
Surety bond name Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Domestic collection agency bond (first year) $10,000 $100-$150 $100-$250 $250-$500 $500-$1,000
Domestic collection agency bond (renewal) Up to $30,000 $225-$$459 $300-$$750 $750-$1,500 $1,500-$3,000
Alien collection agency bond (first year) $20,000 $150-$300 $200-$500 $500-$1,000 $1,000-$2,000
Alien collection agency bond (renewal) Up to $60,000 $450-$900 $600-$1,500 $1,500-$3,000 $3,000-$6,000

How is your surety bond cost determined? The main factors that play a role in setting your bond price are your personal credit score, business finances, and assets and liquidity. Your surety needs to examine them in order to assess the level of bonding risk. You can expect a lower bond premium if your overall profile is strong.

Can I get bonded with bad credit?

Even if your finances are far from stellar, you can get the bond you need with Lance Surety Bonds. We have designed our Bad Credit Surety Bonds program for applicants struggling with low credit score, tax liens, bankruptcies, and civil judgements.

The bond rates for bad credit bonding are usually between 5% and 10% to compensate for the increased risk. We work with a number of A-rated, T-listed surety companies, which means we can select the best matching bond option for your particular case.

How do I get a North Carolina collection agency bond?

Do you have more questions about the bonding process? You can refer to our How to Get Bonded page for an in-depth overview.

If you would like to consult with our bonding specialists, don’t hesitate to call us at (877) 514-5146.

What happens if I get a bond claim?

Your surety bond is a security instrument that protects the interests of your customers. If you fail to duly pass on any collected finances, or engage in other illegal activities, you can end up with a bond claim. The harmed party can ask for a reimbursement up to the maximum amount of your bond.

If the claim is proven, you will be liable to cover all costs related to the case. Your surety may at first step in to repay the claimant. However, you have to fully compensate it afterwards. This means that bond claims can cause a long list of problems for your agency, and thus should be avoided.

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About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

What Our Clients Have To Say?




Kimberlee Ables
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew Poincot
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie Martinez
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!

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