Illinois — Collection Agency Bond
Illinois collection agencies must file and maintain a $25,000 surety bond for licensing. Use the agency's legal name and IDFPR registration details when ordering. The bond protects qualifying creditors when collected money is not remitted; it does not pay off the debts your agency is trying to collect.
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- Recorded state
- Illinois
- Category
- Financial services
What this bond does
The bond secures the agency's compliance with the Collection Agency Act and lawful remittance rules, regulations and directions. The published form also backs money due to the State and other persons under the Act.
- Who needs it
- Collection agencies applying for or renewing an Illinois license with the Department of Financial and Professional Regulation. Match the licensed agency and office, rather than an individual employee or a creditor using its services.
- Who it protects
- The principal and surety are jointly and severally bound to the People of Illinois for the use of the State and qualifying creditors, with a $25,000 aggregate limit. Section 8 protects a creditor that obtains a court judgment for the agency's failure to remit collected money owed to that creditor. A bond action must begin no more than one year after that judgment.
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
- Illinois Collection Agency Act section 8 (opens in a new tab)Checked October 27, 2026
- IDFPR BD-COL collection agency bond, April 2024 (opens in a new tab)Checked October 27, 2026
Have these ready
- Have the agency's legal name, office address and FEIN or other identifier requested by the accepted form.
- Bring the existing Illinois collection agency registration number if applicable and identify a new application or renewal.
- Check the required $25,000 amount, effective date and completed principal/surety execution on BD-COL.
- For a replacement, arrange filing and an effective date that meet the prior bond's termination date.
Questions about this bond
Who can claim the creditor protection?
Section 8 protects a creditor with a court judgment based on the agency's failure to remit collected money owed to it. An action on the bond must start within one year after that judgment. The published form also addresses the agency's obligations to the State under the Act.
Does every license renewal need a completely new bond?
The Act calls for a continuous bond running with the original and renewal license periods unless terminated by the insurer. Keep the required bond and license current rather than assuming a new annual aggregate limit or a fixed purchase term.
Can a replacement bond restore a cancelled license?
Not automatically. File a replacement effective when the previous bond terminates to avoid cancellation. If the license has already been cancelled under section 8, the agency must file a new application and is treated as a new applicant.