Who requires it
Colorado Department of Law — Collection agency administrator
License & permit · Colorado
Colorado Collection Agency Bond
Collection agencies licensed under Colorado’s Fair Debt Collection Practices Act must keep a surety bond—or a qualifying deposit—computed from average monthly client remittances. The required amount starts at $12,000 and rises by volume to a $20,000 ceiling. File it with the Attorney General.
Common bond amount
$12,000–$20,000 by remittance volume
Starts at $12,000 and rises with monthly remittances, up to $20,000.
How you file
File with the Department of Law. A surety bond or qualifying deposit both work.
Renewal
Keep the bond active while licensed. Licenses renew each July 1.
Who requires it
Applicants and licensees acting as a collection agency under C.R.S. §§ 5-16-118 and 5-16-119. Section 5-16-124(12) says a bond is not required of a debt buyer as long as the debt buyer does not also provide third-party debt collection. Creditors collecting their own debts in their own name, and agencies collecting only commercial, business, investment, or agricultural debts, fall outside CFDCPA licensing per the Attorney General’s licensing page—confirm your activity with the administrator before treating surety as optional.
How much is required
C.R.S. § 5-16-124(1) sets a bond of $12,000 plus an additional $2,000 for each $10,000—or part thereof—by which the average monthly sums remitted or owed to all clients during the previous year exceed $15,000. The total may not exceed $20,000. A qualifying savings account, deposit, or certificate of deposit under § 11-35-101 may substitute for the surety. Subsection (10) lets the administrator authorize a $2,000,000 blanket bond for qualifying licensees who pay a share fee instead of posting an individual bond.
How to get and file it
Have a surety licensed by the Colorado commissioner of insurance to write fidelity and surety execute a bond meeting § 5-16-124, naming the Attorney General, or arrange a qualifying deposit. File with the administrator through the Department of Law collection-agency licensing portal with the application or renewal package. Follow any administrator guidance on electronic seals and signatures. Keep the required amount in place at all times while licensed. If the surety cancels or reduces the bond, they must notify the administrator immediately. Replace the bond within thirty days after the administrator receives that notice (or by a later date in the surety’s notice), or the license expires. Licenses run from issuance to the following July 1 and renew through the licensing portal; notify the administrator within thirty days of surety-bond changes under § 5-16-122.
Cost note
Those figures are the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Base amount
- $12,000 before volume increments (§ 5-16-124(1))
- Volume increments
- +$2,000 for each $10,000 or fraction of average monthly remittances above $15,000
- Ceiling
- Total may not exceed $20,000
- Who requires it
- Filed with the Attorney General
- Debt buyers
- No bond required under § 5-16-124(12) if the debt buyer does not also provide third-party debt collection
Official sources
Related resources
Frequently asked questions
How do I calculate the amount above $12,000?
Start at $12,000. If last year’s average monthly sums remitted or owed to clients exceeded $15,000, add $2,000 for each full or partial $10,000 of that excess. Stop at $20,000. New applicants without a prior year should confirm the administrator’s starting amount when they apply.
Does every debt buyer need this bond?
No. Section 5-16-124(12) exempts debt buyers from the bond as long as they do not also provide third-party debt collection. If you buy debt and collect for others, treat the bond as required.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Colorado application
Colorado will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-10. This guide is based on verified educational content and official sources.
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