Who requires it
Wisconsin Department of Financial Institutions — Division of Banking
License & permit · Wisconsin
Wisconsin Collection Agency Bond
Wisconsin collection agencies licensed under Wis. Stat. § 218.04 must maintain a surety bond sized from the Department of Financial Institutions’ annual volume schedule. The Division of Banking’s Collection Agency Annual Report (Form LFS420) translates annual collections (net of paid directs) into required amounts that begin at $25,000 and step up with volume. Bonds are maintained as electronic surety bonds in NMLS. The Division reserves the right under Wis. Stat. § 218.04(3)(d) to require a higher amount when needed to protect the public.
Common bond amount
Volume-based from $25,000
Use current DFI Form LFS420 schedule; Division may require a higher amount under Wis. Stat. § 218.04(3)(d).
How you file
File electronically through NMLS; recalculate annually from volume
Renewal
Recalculate on annual report; rider ESB in NMLS; renew license by year-end
Who requires it
Entities that collect claims owed or asserted to be owed to others and that must hold a Wisconsin collection agency license through DFI / NMLS. Non-residents that contact Wisconsin residents only by interstate mail or telecommunications may fall outside licensing in some cases—confirm the physical-presence and solicitation rules with DFI before deciding you are exempt.
How much is required
Complete the surety bond calculation on the current Collection Agency Annual Report. Form LFS420 publishes a schedule keyed to annual collections net of paid directs: less than $150,000 → $25,000; then stepped faces through $290,000 for $20 million to under $30 million; collections of $30 million or more require contacting the Division of Banking. The form also distinguishes calculation paths based on whether operations are physically located in Wisconsin. Use the Division’s current form—not an outdated commercial summary—when sizing the bond.
How to get and file it
Have a Wisconsin-authorized surety issue an electronic surety bond in NMLS for the amount produced by the current LFS420 calculation (or the Division’s directed amount). Match the name on the bond to the licensed entity and associate the bond with the company license record. Licenses renew through NMLS (typically on the December 31 cycle). Recalculate the required face each year on the annual report, then request an NMLS rider to increase or decrease the electronic surety by the Division’s stated effective dates. Keep coverage continuous; a lapse can jeopardize the license.
Cost note
The schedule amounts are required bond amounts, not premiums. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Minimum published face
- $25,000 on the LFS420 schedule for the lowest collection tier
- Sizing method
- Annual collections net of paid directs per current DFI Form LFS420
- Filing
- Electronic surety bond through NMLS
- Authority to increase
- Division may require a higher bond to safeguard the public
Official sources
Related resources
Frequently asked questions
Why do some summaries still say $25,000 or $35,000 only?
Older guidance sometimes tied faces to where records are kept. The Division’s current annual report uses a collections-volume schedule that starts at $25,000 and increases with volume. Rely on the latest LFS420 form and any Division instruction for your license year.
When must I increase the bond after the annual report?
Follow the dates printed on the current LFS420. The Division’s recent form directs amount increases to be submitted in NMLS by early April with an effective date on or before May 1 of that cycle.
Related Wisconsin bond guides
Credit Services Organization Bond
$25,000
A person may not act as a credit services organization in Wisconsin unless registered with the administrator and compliant with the security requirement in Wis. Stat. § 422.502. The statute requires a $25,000 surety bond issued by a surety admitted in Wisconsin or an irrevocable letter of credit from a federally insured bank or savings and loan association located in Wisconsin. Security runs in favor of the state for the benefit of persons damaged by a subchapter V violation. The Department of Financial Institutions publishes Form BCA301 as a continuous $25,000 bond that the surety may cancel with sixty days’ notice to the Division.
Sales Finance Company Bond
$25,000 minimum
A sales finance company or applicant for a Wisconsin sales finance company license must provide and maintain a bond or irrevocable letter of credit of not less than $25,000 under Wis. Stat. § 218.0114(5)(b). The security must be in a form acceptable to the Division of Banking, issued by a surety licensed to do business in Wisconsin, and payable to the state of Wisconsin for the use of the state and of any person who sustains a loss because of an act that constitutes grounds for suspension or revocation under chapter 218. DFI manages these licenses and electronic surety bonds through NMLS.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Wisconsin application
Wisconsin 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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