
To operate a successful collections agency in Connecticut, you'll need to navigate the state's licensing and compliance requirements. The Connecticut Department of Banking is responsible for overseeing the licensing process.
The licensing process involves obtaining a license from the Department of Banking, which requires a $100 application fee and a $500 annual renewal fee.
You'll also need to register with the Secretary of the State's office, which costs $60. This registration is required for all businesses operating in the state.
The registration process typically takes 2-5 business days to complete.
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Licensing and Requirements
To operate a collection agency in Connecticut, you'll need to meet certain licensing and regulatory requirements. Collection agency bonds in Connecticut are continuous until canceled.
The surety can cancel the bond at any time, but must give written notice of cancellation to the Commissioner of Banking via certified mail at least 30 days prior to the date of cancellation.
This means you'll need to plan ahead and allow for a 30-day notice period if you need to cancel your bond.
Consumer Agencies Licensed
To verify that a consumer collection agency is licensed to do business in Connecticut, you can use the NMLS Consumer Access link. This is a fully searchable website that allows the public to view information concerning state-licensed consumer collection agencies.
Consumer collection agencies licensed to do business in Connecticut are listed alphabetically by entity name. The listings include entity name, license number, license type, and address.
You can download the Consumer Collection Agency Licensee List as of February 4, 2025, which includes all licensed agencies. To find a particular name, Windows users can select the "control" and "F" keys while the file is downloaded.
To contact the Consumer Credit Division with questions, you can email Anne Cappelli.
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Obtaining a License
To become a licensed collection agency in Connecticut, you'll need to take a few key steps. First, review the jurisdiction-specific regulations for consumer collection agencies in Connecticut, as well as the state's consumer collection licensing statutes.

The first step towards obtaining a license is to file your company record (Form MU1) for Connecticut through the NMLS. This is a crucial part of the process, so make sure to get it done accurately.
You'll also need to provide financial statements prepared by a CPA, as well as submit your control persons record (Form MU2) and any relevant branch records (Form MU3) through the NMLS.
A business plan is also required, which should note the company's fee schedule, marketing strategies, operating structure, products, and target markets. This plan should be uploaded via NMLS.
You'll also need to submit a Certificate of Authority/Good Standing Certificate from the Connecticut Secretary of the State, as applicable. This may require some extra paperwork, but it's an important step.
The next step is to provide document samples and formation documents, as well as a management chart. This will give the state a clear understanding of your business operations.
To complete the licensing process, you'll need to post a surety bond. This bond must cover the main office, and each additional branch office location must be listed on the addendum. The name of the principal insured on the bond must match exactly the Full Legal Name of applicant, including Other Trade Names.
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Here's a summary of the licensing fees you can expect to pay:
Licensing Fee | Amount |
---|---|
Connecticut license fee | $500 |
NMLS initial processing fee | $100 |
MU2 credit report | $15 per individual |
MU2 FBI background check | $36.25 per individual |
After submitting your surety bond, you'll need to submit a Connecticut Consumer Collection Agency License. This should be emailed to the Connecticut Department of Banking at [email protected].
Collection Agency Bond
A collection agency bond is required to operate in Connecticut, and it's a one-time fee of $25,000. This bond is posted with the Connecticut Banking Commissioner.
To get started, you can call 1 (800) 308-4358 or submit a bond request. The bonding process is made fast and easy by experts who can guide you through it.
The bond ensures that collection agencies account for all funds entrusted to them and protects consumers from wrongful conversion of funds up to $25,000. This protection is in place to prevent any damage to creditors, consumer debtors, or property tax debtors.
Collection agency bonds in Connecticut are continuous until canceled, and the surety can cancel the bond with 30 days' written notice to the Commissioner of Banking.
Cost of a Collection Agency Bond
The cost of a collection agency bond can vary depending on the state you're operating in. In Connecticut, you'll need to post a $25,000 surety bond.
If you're looking to get started with the bonding process, you can call 1 (800) 308-4358 or submit a bond request to get the ball rolling.
Why Do I Need a Bond for a Collection Agency?
You need a Connecticut collection agency bond to ensure that your collection agency conducts business ethically and lawfully.
In Connecticut, consumer collection agency bonds protect people who are damaged by the wrongful conversion of funds held by the collection agency. The bond covers damages up to $25,000.
The bond requires the collection agency to reimburse the surety for all damages paid out. This means you'll have to pay back the surety if they need to compensate anyone for your agency's mistakes.
Licenses for collection agencies expire at the close of business on September 30 of every odd year, unless renewed. This means you'll need to renew your bond and license regularly to stay in business.
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Core Considerations for Agency Bonds
Collection agency bonds can be a complex topic, but let's break it down. Collection agency bonds in various states, including Connecticut, are continuous until canceled.
In Connecticut, the surety can cancel the bond at any time by giving written notice of cancellation to the Commissioner of Banking via certified mail at least 30 days prior to the date of cancellation. This gives you ample time to prepare for the cancellation.
If you're dealing with a collection agency bond, it's essential to know that these bonds are typically continuous. This means they remain in effect until they're canceled.
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Timeline and Process
Collections agencies can be overwhelming, but understanding the timeline and process can help you stay on top of your payments.
You'll typically receive multiple payment plan offers and reminders via email and text within the first 90 days after leaving UConn.
If you don't set up a payment plan or pay your bill in full, you'll be offered alternative payment plans via email and text between days 91 and 150. During this time, you'll also receive 30-day warning letters in the mail.
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These letters signify when UConn will start using tools like the CT State Treasury Offset to collect on the balance due.
By day 150, you'll receive a letter notifying you of placement with an external collection agency. At this point, payment plan offers are expired, and you'll need to work directly with the collection agency to pay the balance due.
Here's a breakdown of the key milestones in the collection process:
Day | What Happens |
---|---|
1-90 | Multiple payment plan offers and reminders via email and text |
91-150 | Alternative payment plans via email and text, 30-day warning letters in the mail |
150+ | Placement with an external collection agency, expired payment plan offers |
Collection Agencies
Collection agencies in Connecticut are required to be licensed, and licenses expire at the close of business on September 30 of every odd year, unless renewed.
To operate in the state, collection agencies must have a Connecticut collection agency bond, which ensures that the agency accounts for all funds entrusted to it and protects consumers from wrongful conversion of funds.
The bond protects consumers up to the full amount of $25,000, and the collection agency must reimburse the surety for all damages paid out.
Agencies
UConn partners with two external collection agencies: Reliant Capital Solutions, LLC and Key 2 Recovery, Inc. These agencies will send you communications once your account has been placed with them.
Once your account is placed with an agency, you must work with them directly to make payments. Payment plans through UConn will no longer be available.
UConn does not utilize credit reporting or charge additional collection fees, so there is no additional charge to you for being placed with a collection agency.
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_Collection Attorney_
A collection attorney can be a lifesaver if you're dealing with a stubborn debtor. They can help you navigate the complex process of collecting on a debt. Attorney Einhorn has been practicing in the areas of creditor’s rights, repossessions, replevins, and collections since 1999.
Court costs in Connecticut can be expensive, with Superior Court costs often running $300-$700 to bring an action and small claims matters ranging from $75-$125 in court costs alone. This is why it's essential to have a clear understanding of your contract and whether it allows for "reasonable attorneys fees and court costs" to cover costs of collection.
In Connecticut, the easy part is filing suit and getting judgment. The real work begins when the defendants fail to make payment. Collection attorneys have several tools available for collecting on debts, including judgment liens on real estate, wage and bank executions and garnishments, examination of judgment debtors under oath, attachments of assets, repossessions, and mechanics liens.
Some common types of collection cases handled by attorneys include small claim matters under $5,000 and superior court cases for an amount greater than $5,000. Small claim matters under $5,000Superior court cases for an amount greater than $5,000 It's essential to contact a collection attorney experienced in handling these types of cases.
Call Attorney Geoffrey T. Einhorn for a free consultation 203-269-1665 and let the Einhorn Law Firm help you to collect on your Connecticut Judgment today.
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Debt Laws and Regulations
Debt laws and regulations in Connecticut can be complex, but understanding them is crucial for collection agencies and consumers alike.

The Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive, deceptive, or unfair debt collection practices, setting limitations on when and how debt collectors can contact consumers.
Debt collectors in Connecticut must be licensed and adhere to the state's version of the FDCPA, which provides additional protections to consumers.
In Connecticut, there is a time limit for when creditors can sue consumers for unpaid debts: three years for open accounts and six years for written contracts.
If a creditor obtains a court judgment against a debtor in Connecticut, they can garnish the debtor's wages or bank accounts, but only up to the lesser of 25% of disposable earnings or the amount by which a person's weekly earnings exceed 40 times the minimum wage.
Collection agencies must check if the consumer has filed for bankruptcy and if the debt they owe has been practically written off before attempting to collect.
Here are some key debt laws and regulations in Connecticut:
Law | Description |
---|---|
Fair Debt Collection Practices Act (FDCPA) | Protects consumers from abusive, deceptive, or unfair debt collection practices |
Fair Credit Reporting Act (FCRA) | Regulates the collection and use of consumer credit information |
Connecticut Fair Debt Collection Practices Act | Provides additional protections to consumers and applies to a broader range of debt collectors |
Statute of Limitations | Three years for open accounts and six years for written contracts |
Connecticut Garnishment Laws | Limits the amount that can be garnished to 25% of disposable earnings or the amount by which a person's weekly earnings exceed 40 times the minimum wage |
Frequently Asked Questions
How long can debt collectors try to collect in Connecticut?
In Connecticut, debt collectors have a six-year time limit to pursue debt collection. After six years, the debt is considered time-barred and collectors can no longer take action.
What happens if you ignore a collection agency?
Ignoring a collection agency may lead to further action, including a lawsuit. Seeking professional advice is recommended if you're unable to resolve the debt.
What is the 11 word phrase to stop debt collectors?
The 11-word phrase to stop debt collectors is "Please cease and desist all calls and contact with me, immediately." This phrase can provide significant protection against aggressive debt collection practices when used correctly.
How to tell if a debt collector is legit?
To verify a debt collector's legitimacy, look for their full name, company name, address, phone number, website, and email, which should be easily accessible on their website or through a simple search. If this information is readily available and matches official records, it's a good sign that the collector is a reputable and licensed business.
Sources
- https://portal.ct.gov/DOB/Consumer-Credit-Licenses/Consumer-Credit-Licenses/Consumer-Collection-Agencies-Licensed-in-Connecticut
- https://bursar.uconn.edu/departments/collections/
- https://www.suretybonds.com/states/connecticut/collection-agency-bond
- https://www.einhornlawfirm.com/collections-attorney-ct.php
- https://nexacollect.com/collection-agencies-connecticut/
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