How to Get a Collection Agency License in Oregon

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Oregon collection agency license bond needs. Learn how to get a collection agency license in Oregon, below.

What Collection Agency Licenses Are Issued in Oregon?

The Oregon Division of Financial Regulation (DFR) has jurisdiction over individuals and businesses operating as collection agencies throughout the state. It requires both home offices and branch locations to be properly licensed. License applications are submitted through and processed by the Nationwide Mortgage Licensing System (NMLS).

What Are the Steps in the Licensing Process?

You’ll find all of the necessary application materials on the Oregon NMLS page. There are separate forms for collection agency and branch licenses, and no branch license application can be submitted until the collection agency license has been approved.

Prior to beginning the application process through NMLS, you must already have registered the business with the Secretary of State. You must also have certified copies of all business formation documents available to upload as part of your collection agency license application. The Oregon NMLS page lists all of the other documents you may be required to submit in support of your license application, such as a business plan, Oregon Certificate of Authority or Certificate of Good Standing, and so on.

You’ll also need to pay the application fee (currently $350) and upload an Oregon collection agency license bond in the proper amount:

  • $10,000 for debt collection businesses domiciled in Oregon
  • $15,000 for out-of-state and certain other applicants

Why is an Oregon Collection Agency License Bond Required?

The license bond serves as your guarantee to conduct debt collection operations in compliance with the Oregon Revised Statutes, Chapter 697. Any violation of those statutes that causes another party a financial loss can be litigated in court and result in a judgment, which is satisfied by filing a claim against the collection agency’s license bond.

The surety bond agreement is a legally binding contract involving three parties:

  • DFR is the “obligee” requiring the bond.
  • The collection agency is the “principal.”
  • The bonding company authorizing the bond is the “surety.”

The terms of the surety bond agreement indemnify the state and the surety and obligate the principal to pay all valid claims.

How Are Oregon Collection Agency License Bond Claims Paid?

Although the principal bears full responsibility for paying claims, if a claim is not paid promptly, the surety will pay it on behalf of the principal. This creates a debt that the principal must then reimburse to the surety within a certain period of time.

How Much Does an Oregon Collection Agency License Bond Cost?

The surety sets the annual premium rate for an Oregon debt collection agency license bond as a small percentage of the $10,000 or $15,000 required bond amount. The surety’s underwriters will base that premium rate largely on the principal’s personal credit score. This is a good indicator of the credit risk the surety would take on in paying claims on behalf of the principal. With good credit, your premium rate could be as low as 1-2%.

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Our surety bond professionals will get you the Oregon collection agency license bond you need at a competitive rate.