North Carolina foreign collection agency initial bonds.
Quote on review.

A collection agency incorporated in another U.S. state files Foreign Bond #1 (Form CA-F1) with the Commissioner of Insurance before it can receive its first North Carolina permit. G.S. 58-70-20(a) sets the bond at $10,000 for the initial permit. A surety specialist reviews your application and returns a quote, usually within one business day.

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A condition precedent to the permit under G.S. 58-70-20(a) — no bond, no permit

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$10,000 for the initial permit, set by statute; recalculated between $10,000 and $30,000 at each renewal

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Filed alongside Foreign Bond #2 (Form CA-F2), the separate expense bond every nonresident agency owes

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Price

How much does a North Carolina foreign collection agency initial bond cost?

It is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.

How it works

Application to permit-ready bond.

NCDOI will not issue the permit until both foreign bonds are in the file. Here is the whole process on our side:

TODAY · ONE APPLICATION

Apply online

Your agency’s legal and DBA names, FEIN, entity type, business address, owner and contact details, years in business, and the effective date. The credit consent authorizes a soft pull only.

WITHIN 1 BUSINESS DAY

A specialist quotes it

A surety specialist reviews the application and returns your premium. The $10,000 amount is set by statute; underwriting prices it and decides whether collateral applies.

ON PAYMENT

File it in CLARUS

Your executed, notarized Form CA-F1 and power of attorney arrive by email. NCDOI no longer needs originals by mail — upload the bond to your permit application in CLARUS or email it to the licensing office, as the Department’s checklist directs.

About this bond

What it is and who needs it.

What the bond actually guarantees

North Carolina licenses collection agencies through the Commissioner of Insurance under Article 70 of Chapter 58. G.S. 58-70-1 bars anyone from operating a collection agency without a permit, and doing so is a Class I felony. The definition in G.S. 58-70-15 is broad: it reaches agencies soliciting delinquent claims from more than one creditor, in-house collection units that use a separate name, and debt buyers that purchase charged-off consumer debt for collection.

NCDOI sorts applicants by where they are incorporated. Foreign status means incorporated within the United States but outside North Carolina. A foreign agency files two initial bonds: Bond #1 on Form CA-F1 — this page — for $10,000 in favor of the State of North Carolina and for the benefit of the agency’s clients; and Bond #2 on Form CA-F2, a separate $10,000 bond in favor of the Department under G.S. 58-70-20(c) that reimburses the costs of examining a nonresident agency in a bankruptcy or receivership. NC-incorporated agencies file only the domestic Bond #1 (Form CA-D1); agencies incorporated abroad file both bonds at double the amount under G.S. 58-70-5(a)(5).

Form CA-F1 makes the principal and surety jointly and severally liable for $10,000 to indemnify clients for moneys not accounted for during the permit period. The bond is continuous and stays in effect until all money collected has been accounted for. Permits run July 1 to June 30 under G.S. 58-70-35, and at each renewal the Bond #1 amount is recomputed as one-sixth of the prior calendar year’s collections paid directly to the agency, less commissions — never below $10,000 or above $30,000. If the surety does not give 30 days’ written notice of nonrenewal, the form requires it to endorse any increase. It is not insurance for you — if the surety pays a client’s claim, you repay the surety.

N.C. Gen. Stat. § 58-70-20(a)Section 58-70-20(a): as a condition precedent to the issuance of any permit under Article 70, every applicant shall file with the Commissioner a bond in favor of the State of North Carolina, executed by a surety company licensed to transact surety business in the State, maintained in force during the permit period, continuous in form, and in effect until all moneys collected have been accounted for. The bond must expressly benefit any person, firm or corporation for whom the agency collects accounts, and is $10,000 for the initial permit. A renewal bond is no less than $10,000 nor more than $30,000, computed as one-sixth of the prior calendar year’s collections paid directly to the agency less commissions earned. Section 58-70-20(b) allows cash, qualifying certificates of deposit or approved securities in place of the bond, and § 58-70-20(c) requires every nonresident applicant to file an additional $10,000 bond in favor of the Department.

You need this bond if you’re

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A collection agency incorporated in another state applying for its first North Carolina permit

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A debt buyer purchasing delinquent consumer accounts with North Carolina debtors

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Opening an additional location — G.S. 58-70-5(a) requires an application, and bonds, for each location

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A foreign agency re-applying after a permit lapsed or was not renewed by June 30

After you buy

Claims, renewal, filing, and what sets the price.

If a claim is made

A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.

The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.

Renewal and term

Term and renewal are set in the underwriter's quote.

Keep the bond in force for as long as the obligation behind it runs.

How to file it

File it in CLARUS. Your executed, notarized Form CA-F1 and power of attorney arrive by email. NCDOI no longer needs originals by mail — upload the bond to your permit application in CLARUS or email it to the licensing office, as the Department’s checklist directs.

What sets the price

This bond is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.

One application, one specialist review.

These are the actual issuing fields — agency details, FEIN, owner and contact, years in business, the effective date, and a credit consent that authorizes a soft pull only. Submit once and a surety specialist returns your quote, typically within one business day. Free until your bond is issued.

Start the application →

FAQ

Common questions.

What is a North Carolina collection agency foreign Bond #1?It is the $10,000 surety bond on NCDOI Form CA-F1 that a collection agency incorporated in another U.S. state files with the Commissioner of Insurance before its first North Carolina permit issues. G.S. 58-70-20(a) makes it a condition precedent to the permit. It runs in favor of the State and protects the agency’s clients against collected money that is not accounted for.

Who sets the bond amount, and what will I pay?The statute does. G.S. 58-70-20(a) sets $10,000 for every initial permit, and recalculates the amount between $10,000 and $30,000 at renewal. You do not pay the $10,000; that is the surety’s maximum liability on valid claims. Your premium is quoted by a surety specialist after a short review, usually within one business day.

Will I need collateral?That is decided at underwriting, and we tell you before you commit to anything. The bond backs client trust money, so the specialist may ask about your trust account and financial statement. The statute also lets an agency deposit cash, qualifying certificates of deposit or approved securities with the Commissioner instead of a bond.

Do I also need Foreign Bond #2?Yes. G.S. 58-70-20(c) requires every nonresident applicant to file a second $10,000 bond, Form CA-F2, in favor of the Department to reimburse the cost of examining the agency in a bankruptcy or receivership. NCDOI’s initial checklist lists both foreign bonds. We write Bond #2 on its own page.

Is there a credit check?The application includes a credit consent, but it authorizes a soft credit pull only — a soft inquiry that never affects your score. No hard inquiry ever runs on this bond.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

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Requirements checked on the carrier’s application, 9 October 2026. Page updated 12 October 2026.

Get your NC collection agency bond quoted.

One short application and a specialist quote, usually within one business day. Soft pull only. Free until issued.

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North Carolina foreign collection agency initial bonds.Quote on review.