A surety bond is required for licensees now engaged, or intending to be engaged, in the business of a collection agency in the State of Colorado. The surety bond is required pursuant to the Administrator Colorado Fair Debt Collection Practices Act. The bond ensures that the collection agency accounts for and pay the proceeds of all collections less the charges for collection in accordance with the terms of the agreements made between said licensee and all its clients. The bonded agency is also obligated to faithfully comply with the requirements of the Colorado Fair Debt Collection Practices Act and the rules and regulations of the Administrator pertaining to the license. Furthermore, the collection agency must turn over to its clients any legally required notes, documents, or evidence of indebtedness that may have been deposited with licensee.
