An Illinois collection agency bond is one of several instruments required by the Department of Financial and Professional Regulation (DFPR) in order for a candidate to obtain a license. Because of pervasive abuses in the industry, collection agencies came under state regulation in 1975. The law instituted formal licensing requirements and established a regulatory board of seven members appointed by the Secretary of the DFPR made up of consisting of five employed in collection agencies and two public members.
Pursuant to 225 ILCS 425/8, each collection agency must file a surety bond issued by an insurance company authorized to transact fidelity and surety business in the State of Illinois. The bond indemnifies creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the agency to remit money collected on account and owed to the creditor. The collection agency bond must be issued on the state-approved form in the amount of twenty five thousand dollars, ($25,000), be continuous in form and run concurrently with the license period. The surety bond is The Illinois collection agency surety bond and application materials must be submitted to:
Department of Financial and Professional Regulation
Attn.: Division of Professional Regulation
320 West Washington Street, 3rd Floor
Springfield, IL 62786
The Illinois regulations do not exempt collectors from compliance with the federal laws that regulate debt collection practices. The Fair Debt Collection Practices Act (FDCPA) is the federal code which governs debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair or deceptive practices to collect debts and requires collection agencies to comply with local licensing and ethical standards.
Illinois surety bond leader, SuretyOne.com is a specialist in the bonding needs of commercial collection agencies. We offer both the surety and fidelity bonds needed by debt collection professionals nationwide, in Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. An Illinois collection agency bond is quick, easy and issued same-day.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.