Nevada Collection Agency Bond

Enter the business name to obtain a quote:

Nevada Collection Agency Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain Nevada Collection Agency Bonds

At a Glance:

  • Lowest Cost: $175 per year or $18 per month based on the applicant’s credit
  • Bond Amount: Based on the average monthly balance of the company’s trust account used to store funds collected

Table 1.1

Average Monthly Balance Bond Amount
Less than $100,000 $35,000
$100,000 to less than $150,000 $40,000
$150,000 to less than $200,000 $50,000
$200,000 or more $60,000

  • Who Needs it: All collection agencies operating in Nevada
  • Purpose: To ensure the public will receive compensation for any damages should the collection agency violate licensing law
  • Who Regulates Collection Agencies in Nevada: The Nevada Department of Business and Industry
Nevada Collection Agency Bond Form
Nevada Collection Agency Bond Form


Nevada statute 649.075 requires all collection agencies operating in the state to obtain a license with the Department of Business and Industry. The Nevada legislature enacted the licensing laws and regulations to ensure that collection agencies engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, collection agencies must purchase and maintain a surety bond to be eligible for licensure.

What is the Purpose of the Nevada Collection Agency Bond?

Nevada requires collection agencies to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the collection agency fails to comply with the regulations set forth in Nevada revised statutes 649. Specifically, the bond protects the public in the event the collection agency engages in any acts of fraud or fails to pay funds collected to the appropriate creditors. In short, the bond is a type of insurance that protects the public if the collection agency breaks licensing laws.

How Can an Insurance Agent Obtain a Nevada Collection Agency Bond?

BondExchange makes obtaining a Nevada Collection Agency Bond easy. Simply login to your account and use our keyword search to find the “collection” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

Not an agent? Then let us pair you with one!

BX Agent Finder Link

Click the above image to find a BX Agent near you

Is a Credit Check Required for the Nevada Collection Agency Bond?

Surety companies will run a credit check on the owners of the collection agency to determine eligibility and pricing for the Nevada Collection Agency bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.

How Much Does the Nevada Collection Agency Bond Cost?

The Nevada Collection Agency Bond can cost anywhere between 0.5% to 5% of the bond amount per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on a $35,000 bond requirement.

$35,000 Collection Agency Bond Cost

Table 1.2

Credit Score Bond Cost (1 year) Bond Cost (1 month)
700+ $175 $18
650 – 699 $350 $35
625 – 649 $438 $44
600 – 624 $658 $66
550 – 599 $1,400 $140
500 – 549 $1,750 $175

How Does Nevada Define “Collection Agency?”

Nevada statute 649.020 defines a collection agency as any business entity that collects debts on behalf of a creditor.

Exemptions to this definition include:

  • Credit men employed for companies that are not collection agencies
  • Nonprofit cooperative associations
  • Unit owners’ associations
  • Abstract companies doing escrow business
  • Licensed real estate brokers
  • Licensed attorneys

Nevada Collection Agency Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How do Collection Agencies Apply For a License in Nevada?

Collection agencies in Nevada must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the application checklist for details on the process.

License Period – The Nevada Collection Agency License expires on June 30 of each year and must be renewed before the expiration date

Step 1 – Determine the License Type

Nevada requires collection agencies to obtain a specific license/certification corresponding to the nature in which the agency’s business operates. Below are the different types of the Nevada Collection Agency License/Certification.

    • Collection Agency License: Required for Nevada collection agencies that are not licensed in other states
    • Foreign Collection Agency Certification: Required for collection agencies that are licensed in other states and wish to conduct business with Nevada consumers

Step 2 – Purchase a Surety Bond

Collection agencies must purchase and maintain a surety bond (limits outlined in Table 1.1)

Step 3 – Hire a Qualified Manager

Each collection agency office must be managed by a qualified individual capable of handling the day to operations of the business. To become a qualified manager, individuals must have a minimum of two years of industry experience, pass the required exam, and submit the collection manager license application. Collection managers must pay a $305 fee when submitting their applications.

Step 3 – Request an NMLS Account

The Nevada Collection Agency License application is submitted electronically through the Nationwide Multistate Licensing System (NMLS). To submit a license application, applicants must first request to obtain an NMLS account.

Step 4 – Complete the Application

All Nevada Collection Agency License applications can be completed online through the NMLS. Applicants must complete the entire application, and submit the following items:

    • Personal history and fingerprints of all company owners/officers authorized to initiate transactions to the company’s trust account
    • Nevada state business license
    • Lease agreement for the company’s business address
    • Copy of the company’s municipal business license
    • Company financial statements
    • Company business plan
    • Copies all collection forms and letters to be used with Nevada consumers
    • List of all Nevada clients
    • List of all employee aliases
    • Company formation documents
    • Organizational chart detailing the company’s ownership structure

Collection agencies must pay the following fees when submitting their license application:

    • $375 application fee
    • $300 licensing fee

Foreign collection agencies must pay a $500 fee when submitting their application.

How Do Nevada Collection Agencies Renew Their License?

Collection agencies can renew their license online through the NMLS. License holders need to simply login to their account to access their renewal application. The Nevada Collection Agency License expires on June 30 of each year and must be renewed before the expiration date.

What Are the Insurance Requirements for the Nevada Collection Agency License?

Nevada does not require collection agencies to purchase any form of liability insurance as a prerequisite to obtaining a license. Collection agencies must purchase and maintain a surety bond (limits outlined in Table 1.1).

How Do Nevada Collection Agencies File Their Bond?

Collection agencies should submit the completed bond form, including the power of attorney, electronically through the NMLS. The surety bond requires signatures from both the surety company that issues the bond and a representative from the collection agency. The surety company should include the following information on the bond form:

  • Legal name and address of entity/individual(s) buying the bond
  • Surety company’s name and address
  • Bond amount
  • Date the bond is signed
  • Date the bond goes into effect

What Can Nevada Collection Agencies Do to Avoid Claims Against Their Bond?

To avoid claims on their bond, collection agencies in Nevada must follow all license regulations in the state, including some of the most important issues below that tend to cause claim

  • Do not engage in any acts of fraud
  • Do not breach any contracts made with consumers
  • Pay all funds owed to creditors

What Other Insurance Products Can Agents Offer Collection Agencies in Nevada?

Nevada does not require collection agencies to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Nevada Collection Agency Customers?

The NMLS conveniently provides a public database to search for active collection agencies in Wyoming. The database can be accessed here. Contact BondExchange for help developing a marketing piece. Agents can also leverage our print-mail relationships for discounted mailing services.

Nevada Collection Agency Bond