A collection agency in the State of Michigan must be licensed and provide a Michigan collection agency bond. The state agency regulating debt collection activity, the Department of Licensing and Regulatory Affairs is the regulating agency. It defines a “collection agency” as a person directly or indirectly engaged in soliciting a claim for collection, or collecting or attempting to collect a claim owed or due, or asserted to be owed or due another, or repossessing or attempting to repossess a thing of value owed or due, or asserted to be owed or due another arising out of an expressed or implied agreement. The Michigan collection agency bond must be issued in the amount of $5,000 for the agency’s first year of business, and adjusted thereafter based on the agency’s average monthly business. The bond guarantees that the licensed agency will account for all moneys collected upon accounts entrusted to him/her and remit proceeds of collections made to the entitled party(ies). The nation’s surety leader, Surety One, Inc., is a specialist in the bonding needs of the financial services sector. We will issue these surety bonds for ALL applicants in every state that requires bonding of collection agencies. We also offer superlative fidelity bond coverages to protect against losses due to employee dishonesty. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Michigan collection agency bond application or information about any bond product.
