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Texas Collection Agency Bond

Complete guide to getting a collection agency bond in Texas

  • Your Texas collection agency bond is a few clicks away
  • Excellent bonding rates
  • Bad credit program

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What Is a Texas Collection Agency Bond?

Collection agencies in Texas are required to post a surety bond in order to operate legally in the state.

Texas collection agency bonds protect the state and the clients of agencies, in case there is a breach of law during their operations. As for agencies, being bonded is a sign that they are a safe company to do business with.

The collection agency bond, just like other surety bonds, works as a contractual agreement between three parties. Your collection agency is the principal that needs to post the bond. The state authority that requires it– in this case the Texas Secretary of State– is the obligee. The surety is the bond underwriter.

Frequently Asked Questions

Who needs to obtain a Texas collection agency bond?

All third party debt collectors in Texas need to post a $10,000 collection agency bond. There is no licensing process, but the bonding requirement is obligatory for running this type of business in the state.

The bond protects the interests of agencies’ clients. It’s in place to guarantee that they will abide by applicable laws and will offer services of highest quality.

How much does a Texas collection agency bond cost?

The required bonding amount for Texas debt collectors is $10,000.

Your bond premium, on the other hand, is only a fraction of this amount. If you qualify for the standard bonding market, the usual bonding rates are between 1% and 5% of the bond amount. For a $10,000 bond, you can expect to pay a premium of $100 to $500, if your credit score is high.

Texas Collection Agency Bond Cost
Bond Type Surety Bond Amount Above 700 Between 650-699 Between 600-649 Below 599
Texas Collection Agency Bond $10,000 $100-$150 $100-$300 $300-$500 $500-$750

Besides the bond amount you are required to post, there are other factors that affect your bond premium as well. When you apply for your bond, your surety needs to examine your overall financial situation, including personal credit score, business finances, and assets and liquidity. If you are deemed a low-risk applicant, your bond premium will be lower.

Learn all about the way in which your Texas collection agency bond price is determined on our surety bond cost page.

Can I get a Texas collection agency bond with bad credit?

Here at Lance Surety Bonds, we know that getting bonded with bad credit can be an uphill battle. Our Bad Credit Surety Bonds program is designed to help collection agency owners with low credit scores, tax liens, bankruptcies, or civil judgements.

You can expect bad credit bonding premiums between 5% and 10%. The cost of bonding thus is higher, but it’s still a golden opportunity to get the bond you need. Plus, we have close connections with a number of A-rated, T-listed surety companies, which means that we can select the best bonding option for your particular case.

How do I get my Texas collection agency bond?

Getting your Texas collection agency bond is an easy and straightforward process. Apply online шtoday for your free bond quote. Once you complete the application and attach all paperwork, we will deliver your exact bond price.

Apply for your surety bond today and lock your rate for 90 days!

For more information about bonding, our How to Get Bonded page is an excellent resource.

You can always reach us at (877) 514-5146 if you need assistance with your bonding application.

How are bond claims handled for collection agencies?

It’s important to learn how Texas collection agency bonds work before you get bonded. Unlike insurance, your bond protects your clients and the state in which you operate. This guarantees your legal compliance with all applicable laws.

In case you transgress the state rules that govern your trade, you can face a claim on your bond. If the claim is proven, your surety will compensate the harmed party up to the penal sum of the bond. Afterwards, you are liable to repay it in full.

Besides the financial burden, claims are also a problem in terms of reputation and future bonding. That’s why the wisest course of action is to avoid them.

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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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