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John, Attorney
Category: Legal
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Experience:  Licensed and practicing attorney.
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I own a very small Commercial Collection Agency which I do

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I own a very small Commercial Collection Agency which I do part time
I've always heard and i also read that retail collection agencies by law need to have a bond
according to chapter 392.001 debt collections, it states all over ( consumer ) which is retail collections, it doesn't say anything about commercial collections.
The reason that I ask this is because, even though i dont have any angry clients, when i was going through a slow period and couldn't make a payment on my bond and got cancelled, my collector decided to steal money from my agency and threatened to report me for collecting without a bond for that period which would probably ruin me.
I'm having the hardest time getting a straight answer fro anyboby to make a smart decision on whether to go after her for the money she stold or take such an ugly hit
Hi, thanks for submitting your question today. My name is XXXXX XXXXX I’m happy to assist you with your question today. Consumer collection agencies (those collecting credit card debts and the like from individuals/persons) are required to post a $10,000.00 bond with the Texas Secretary of State. Agencies collecting only commercial debts (from business or debts acquired to operate a business) are not required to post bond. The particular state you refer to only requires a bond if the collection agency engages in consumer debt collection.

As a side note, the Fair Debt Collection Practices Act, the federal law regulating collection practices, also only applies to consumer collections.

I believe this answers your question. However, if you need clarification or have follow-up questions regarding this matter, I will be happy to continue our conversation – simply reply to this answer. If you are otherwise satisfied with my response, please leave a positive rating as it is the only way I am able to get credit for my answers. Thank you, XXXXX XXXXX wish you all the best with this matter.

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