California — Debt Collection - NMLS Bond
California debt collector licensees must maintain at least $25,000 in security payable to the Commissioner of Financial Protection and Innovation. This bond recovers regulatory expenses, fines and fees under the Debt Collection Licensing Act. It is not the client-remittance protection used in many other states.
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- Recorded state
- California
- Bond type
- Collection Agency Bond
- Category
- Financial services
What this bond does
Financial Code section 100019(e) identifies recovery of expenses, fines and fees levied by the commissioner as the bond's use. Filing and continued security are license duties. Do not describe it as guaranteeing a debt buyer's recoveries, repaying every consumer loss or insuring the collector's business.
- Who needs it
- Debt collectors and debt buyers subject to California's licensing Act, including covered affiliate operations. DFPI's current programme distinguishes the principal-place license from branch offices registered in NMLS. Confirm the actual licensed entity and affiliates rather than assuming every branch needs a separate license or identical bond.
- Who it protects
- The statutory bond is payable to the commissioner and issued by an insurer authorized in California. Its regulatory-recovery purpose differs from a direct client-funds promise. The commissioner may require a higher sum based on affiliates under the license and the dollar amount of consumer debt collection; $25,000 is a minimum, not a ceiling.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- California Financial Code 100019 — licensee duties and security (opens in a new tab)Checked October 27, 2026
- California DFPI — debt collector licensing and FAQs (opens in a new tab)Checked October 27, 2026
Have these ready
- Confirm the licensed company, NMLS identifier, affiliates and registered branches.
- Bring the commissioner's required sum, at least $25,000, and effective date.
- Match the regulatory-expense/fine/fee undertaking rather than a remittance model.
- Coordinate electronic filing of the bond and later riders within the statutory deadline.
- Track replacement after an action or recovery and separate DFPI annual reporting.
Questions about this bond
Is this a bond guaranteeing payment to collection clients?
Section 100019(e) specifies recovery of expenses, fines and fees levied by the commissioner. Do not replace that regulatory purpose with a generic client-remittance or consumer-loss guarantee.
Is $25,000 the maximum required security?
No. It is the statutory minimum. The commissioner may require a higher amount based on affiliates under the license and the dollar amount of consumer debt collection. Use the actual instruction for the licensed group.
Does a branch need its own California debt collector license?
DFPI's current programme says a separate license is not required for each branch, but branches must be registered in NMLS. Confirm the actual company and affiliate structure and any higher bond requirement rather than adding a separate bond automatically.