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The current Division of Banks regulations identify a $25,000 debt collector bond and allow the Commissioner to require a further bond in an amount the Commissioner determines. Bring the actual request, including any additional security requirement; do not assume one base bond satisfies every applicant's financial-responsibility requirements.

The collection-proceeds condition depends on written demand and the terms of the agreement under which the account was received. Retain the collection agreement, receipt and remittance records, and any demand relating to unpaid proceeds. Compliance with the wider collection laws remains the agency's responsibility.

The statutory bond covers an indeterminate period, while the license has its own annual renewal. Section 26 requires approval by the State Treasurer after examination and approval by the Commissioner. It permits cancellation by the principal, surety or Treasurer through registered-mail notice to each of the others, with an effective date no sooner than 30 days after mailing.

Debt collector and loan servicer applications use NMLS, but the license categories are not interchangeable. A third-party loan servicer registration is exempt from the statutory sections governing this collection bond. A student loan servicer has separate licensing and bond requirements, even though its base bond amount may also be $25,000.

Purchase Now opens Propeller's Massachusetts debt collector/collection agency application in a new tab. Have the legal applicant name, NMLS company ID and Division request ready. Confirm the prescribed document, required execution and current submission instructions before completing delivery. NMLS application entry and payment for the bond do not establish Commissioner or Treasurer approval.