Pursuant to state law, a Colorado collection agency bond must be posted and a state license issued before the agency may begin operations. The Colorado Fair Debt Collection Practices Act (CFDCPA) regulates debe collection in the State. Out of state agencies are subject the same requirements as in-state agencies. The Act defines “Collection agency” as any: (I) Person who engages in a business the principal purpose of which is the collection of debts; or (II) Person who: (A) Regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another; (B) Takes assignment of debts for collection purposes; (C) Directly or indirectly solicits for collection debts owed or due or asserted to be owed or due another (CO 12-14-103). The Colorado collection agency bond must be a minium of $12,000, however the penal sum of the surety bond is adjusted based on annual collections. Pursuant to (CO 12-14-142)The increase adjustment must be an additional two thousand dollars for each ten thousand dollars or part thereof by which the average monthly sums remitted or owed to all of its clients during the previous year exceed fifteen thousand dollars. The Colorado collection agency bond runs to the Attorney General for payment of amounts due to anyone or any party that has entrusted the agency with a collection matter, compliance with the CFDCPA, and the delivery on demand of a client’s files when requested. A careful reading of the bond section of the law is important to understanding this obligation. National surety leader, Surety One, Inc., specializes in the bond needs of the insurance and financial services sector. We offer this class of surety bond to all applicants in every state that requires bonds of collection agencies. We also offer broad fidelity bond coverages to protect against losses due to employee dishonesty. Visit our site SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Colorado collection agency bond application or information about surety and fidelity bonding.
