Who requires it
Illinois Department of Financial and Professional Regulation — Collection Agencies
License & permit · Illinois
Illinois Collection Agency Bond
Illinois collection agencies licensed under the Collection Agency Act must maintain a twenty-five-thousand-dollar continuous surety bond under 205 ILCS 740/8. The bond may not be cancelled without at least sixty days’ notice. Debt buyers collecting only accounts they own are outside this bond requirement. The Act remains in force after Senate Bill 2457 removed the former sunset; it was not repealed.
Common bond amount
$25,000
Fixed amount that stays in force while licensed; 60-day cancellation notice. Debt buyers collecting owned accounts are outside this bond.
How you file
File the Collection Agency Act bond; stays in force while licensed
Renewal
Keep continuous; 60-day cancellation notice; no coverage gap
Who requires it
Entities that collect debts owed to others and must hold an Illinois collection agency license with IDFPR. Debt buyers that collect only accounts they own are exempt from this particular bond when operating within that exemption. Confirm license class with IDFPR before assuming the exemption applies.
How much is required
Section 8 of the Collection Agency Act fixes a twenty-five-thousand-dollar surety bond that stays in force while licensed. The amount does not scale with portfolio size. The statute’s cancellation rules—including sixty days’ notice—travel with that fixed amount.
How to get and file it
Have an authorized surety issue a twenty-five-thousand-dollar continuous collection agency bond meeting 205 ILCS 740/8 and IDFPR form requirements, then file it with the collection agency license application or renewal package. Keep the bond continuous for the life of the license. Cancellation requires at least sixty days’ notice under the Act; arrange a replacement so coverage never gaps. Update the bond when the licensed legal name changes.
Cost note
Twenty-five thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- $25,000 continuous surety bond
- Cancellation
- At least 60 days’ notice under 205 ILCS 740/8
- Debt buyers
- Exempt from this bond when collecting only owned accounts
- Act status
- Collection Agency Act remains in force after SB 2457 removed the sunset
Official sources
Related resources
Frequently asked questions
Was the Illinois Collection Agency Act repealed?
No. After Senate Bill 2457 removed the former sunset, the Act remains in force. Collection agency licensing and the section 8 bond requirement continue to apply to covered agencies.
Do debt buyers need this $25,000 bond?
Debt buyers that collect only accounts they own are exempt from this collection agency bond. If the firm also collects for others, the license and bond analysis changes—confirm with IDFPR.
Related Illinois bond guides
Credit Services Organization Bond
$100,000
An Illinois credit services organization that charges consumers before completing contracted services must maintain a one-hundred-thousand-dollar surety bond under 815 ILCS 605/10 and register with the Secretary of State under § 605/5. The bond is filed on SOS Form I-220 and must remain in place for two years after the organization ceases to do business in Illinois.
Mortgage Broker & Banker Bond
$25,000–$150,000
Illinois residential mortgage brokers and mortgage bankers file a surety bond on the same volume-based schedule in 38 Ill. Adm. Code 1050.490, ranging from twenty-five thousand to one hundred fifty thousand dollars. Exempt independent loan processing entities use a flat fifty-thousand-dollar amount. Bonds for these company licenses are filed electronically through NMLS as IDFPR Residential Finance instructs.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Illinois application
Illinois 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 2026-08-11. This guide is based on verified educational content and official sources.
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