How to Find Out If a Collector Has Posted the Required Bond to Do Business in the State of Texas

Before licensing a debt collector to do business, the Texas Secretary of State requires the collector to produce a surety bond of $10,000. Bonds come from private insurers and bond companies at prices that vary based on a company's size, operations, assets and history. The truth is, Texas doesn't care what cost the collector pays, it just requires a current, legally issued bond. To protect consumers and anyone considering doing business with a debt collector, the Secretary of State makes debt collector information available for free on its website.

Secretary of State

All debt collectors wanting to do business in Texas must register with the Texas Secretary of State. In order to operate, they must present a $10,000 or greater surety bond from an insurer recognized by the Texas Department of Insurance. Texans concerned about the legitimacy of a debt collector should check the license and bonding status of the collector with the Secretary of State.

Online Verification

The Secretary of State maintains an online database of third-party debt collectors who have filed bonds and are therefore authorized to do business in Texas. Members of the public can visit the Secretary of State's "Debt Collector Search" page and search by name, address, file number or bonding company name.

Reporting

Texans being sought by a debt collector not in the Secretary of State's file can report the incident to the Secretary of State who will then take enforcement action. The collector will then have the opportunity to comply with state regulations by obtaining a bond. Failure to do so may result in the collector being unable to conduct business and pursue any Texas debts.

Other Resources

Consumers concerned about the legitimacy, ethics or legal actions of a debt collection agency can turn to the Texas Attorney General and the Federal Trade Commission with their questions and complaints. Both agencies enforce the Fair Credit Reporting Act and other consumer protections that ensure debt collection is handled fairly and responsibly.