If you wish to conduct debt collection activities in Indiana, you will need to provide an Indiana collection agency bond and file for the appropriate license from the regulatory authority. The term “collection agency” includes all persons engaging directly or indirectly in the business of soliciting claims for collection, or in the collection of claims owed or due or asserted to be owed or due to another, including child support arrearages. The term “collection agency” also means and includes, but shall not be limited to, any person who sells, furnishes, or maintains a letter or written demand service, including stickers or coupon books, designed for the purpose of making demand on any debtor on behalf of any creditor for the payment of any claim wherein the person furnishing or maintaining such letter or written demand service, including stickers or coupon books, shall sell such services for a stated amount or for a percentage of money collected, pursuant to Indiana Code 25-11-1-1. The Indiana collection agency bond must be writtten in the sum of five thousand dollars ($5,000) for each office the applicant operates in the State of Indiana. All bonds shall run to the people of the state of Indiana and shall be furnished by a surety company authorized to do business in this state. Indiana collection agency bonds must be conditioned upon the faithful accounting of all money collected upon accounts entrusted to such person. The Indiana collection agency bond must guarantee that within sixty (60) days from the date of the collection of any claim, render an account of and pay to the client, for whom collection has been made, the proceeds of such collection less the charges for collection agreed upon by and between the applicant and the client. Any party injured or damaged by the collection agency while operating under the license, may bring a direct action against the Indiana collection agency bond. Indiana surety leader, Surety One, Inc., specializes in the bonding needs of the financial services sector. We offer this type of surety bond to all applicants in every state where bonds are required of collection agencies. We also offer fidelity bond coverages especially for colletions agencies to protect against internal dishonesty losses. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Indiana collection agency bond application or information about surety.
