Does Texas Require a Collection Agency License?

Texas does not issue a collection agency license. Instead, third-party debt collectors and credit bureaus must file a $10,000 surety bond with the Texas Secretary of State before collecting any debts in the state.¹ The bond is filed electronically through the SOS Portal using Form 2901, and there is no filing fee.² Federal rules under the Fair Debt Collection Practices Act and CFPB Regulation F apply on top of that state filing.

Who Has to File the Bond

Two categories of businesses are covered: third-party debt collectors and credit bureaus. Texas defines a third-party debt collector by pointing to the federal FDCPA definition at 15 U.S.C. § 1692a(6), which covers anyone whose primary business is collecting debts owed to someone else, or who regularly collects debts on another party’s behalf.³ A credit bureau falls under the same requirement when it gathers and distributes information about a consumer’s creditworthiness or payment history for compensation.¹

Several types of businesses sit outside the requirement. Original creditors collecting debts owed directly to them are not third-party collectors. Attorneys collecting debts in their own name for a client are excluded as well, unless the attorney employs non-attorney staff who regularly solicit debts or contact consumers for collection.³ That exception catches firms that technically operate as law offices but function like collection agencies in practice.

Debt buyers occupy a less clear-cut space. A company that purchases delinquent debt becomes the new owner of that obligation, which can look like an original creditor relationship. Federal courts, however, have held that if the company’s principal business is collecting purchased debts, it still qualifies as a debt collector under the FDCPA definition Texas incorporates. The safer approach for debt buyers operating in Texas is to file the bond rather than litigate classification.

What the $10,000 Bond Looks Like

The bond amount is exactly $10,000, issued by a surety company authorized to do business in Texas.⁴ You can verify a surety’s authorization through the Texas Department of Insurance, which publishes a searchable list of authorized insurance companies.⁵

The bond protects consumers. It must be payable both to the State of Texas and to any individual harmed by a violation of Chapter 392 of the Finance Code.⁴ If a collector violates the law and a consumer wins a claim, the surety pays out up to the $10,000 face amount, and the collector must reimburse the surety.

The annual premium depends on your credit history and business financials. Most collectors pay somewhere between $100 and $1,000 per year. Applicants with strong credit and clean histories land at the lower end; newer businesses or those with credit issues pay more. The bond typically runs a one-year term, and you have to renew before it expires to keep collecting in Texas.

Filing Form 2901 Through the SOS Portal

The correct form is Form 2901, “Third Party Debt Collector Surety Bond.” This is the only form used for this filing. It is not Form 502, which is an unrelated entity name registration document. Form 2901 is available on the Secretary of State’s website under the statutory documents section.²

Both the executed Form 2901 and a copy of the surety bond are submitted electronically through the SOS Portal. The Secretary of State instructs filers not to include duplicate copies, payment information, or personal identifying information in the electronic submission, since doing so can lead to rejection.² There is no filing fee.

The form requires signatures from both the collection agency, listed as the principal, and an authorized representative of the surety company. All dates and notary acknowledgments must be current. If your agency operates under a name different from its legal entity name, include the assumed name on the form. Portal questions can go to the Secretary of State’s Registrations Unit at RegistrationsUnit_Assist@sos.texas.gov.

After filing, you can confirm the bond is on record through the TPDC Public Search Portal on the Secretary of State’s website.⁶ Consumers and creditors use the same tool to check whether a collector has an active bond, so a current filing matters for reputation as well as compliance.

Keeping the Bond Active

Once the bond is on file, you cannot let it lapse without consequences. Texas law prohibits a third-party debt collector or credit bureau from engaging in any debt collection without a valid bond on file.⁴ Collecting after expiration puts you in violation of the Finance Code and exposes you to both criminal and civil penalties, including a consumer’s right to at least $100 per violation for operating without a bond.⁷

Either the collector or the surety company can cancel the bond, but only after written notice to the Secretary of State’s Statutory Documents Section at least 60 days before the cancellation date. If the surety initiates cancellation, it must also give the collector 60 days’ written notice.² That 60-day window is your chance to secure a replacement bond and file it before any gap opens. Most surety companies handle renewal automatically as long as the premium is paid on time.

Texas Does Not Use the NMLS

If you hold collection licenses in other states, you may be used to the Nationwide Multistate Licensing System. Texas does not use the NMLS for debt collection filings. About a dozen states, including Arizona, California, and Connecticut, process their collection licenses through that platform, but Texas handles everything directly through the Secretary of State’s office and the SOS Portal.¹ Agencies operating in multiple states have to track each state’s filing system separately rather than assume a single NMLS submission covers Texas.

Federal Rules That Still Apply

Filing the Texas bond only handles the state side. Third-party collectors must simultaneously comply with the federal Fair Debt Collection Practices Act at 15 U.S.C. § 1692, enforced by the Consumer Financial Protection Bureau and the Federal Trade Commission.⁸ The FDCPA applies only to personal, family, and household debts. Commercial debts are excluded.

The federal law restricts when and how collectors can contact consumers. Phone calls are prohibited before 8:00 a.m. or after 9:00 p.m. in the consumer’s local time zone. Workplace calls must stop if the collector learns the employer prohibits them. Within five days of first contact, the collector must send a written validation notice stating the amount owed, the name of the original creditor, and the consumer’s right to dispute the debt. If the consumer sends a written dispute within 30 days of receiving that notice, the collector must stop all collection activity until it provides written verification.⁹ Consumers can sue for actual damages, statutory damages up to $1,000 per lawsuit, and attorney’s fees, and a collector violating both federal and Texas law can face liability under each independently.

The CFPB’s Regulation F, at 12 CFR Part 1006, layers modern communication limits on top of the FDCPA.¹⁰ It caps phone contact at seven calls per debt in any seven-day period, and after a collector reaches the consumer by phone, it must wait at least seven days before calling again about the same debt. Email and text messages are permitted but come with guardrails: no electronic contact between 9:00 p.m. and 8:00 a.m. in the consumer’s time zone, a reasonable basis for believing the email address is not shared with a third party, an opt-out on every text, and an unsubscribe option on every email. Consumers can opt out of one channel without losing others.¹¹

1
Office of the Texas Secretary of State. Frequently Asked Questions for Third-Party Debt Collectors and Credit Bureaus
2
Office of the Texas Secretary of State. Form 2901 – Third Party Debt Collector Surety Bond
3
State of Texas. Texas Finance Code FIN 392.001 – Definitions
4
State of Texas. Texas Finance Code 392.101 – Bond Requirement
5
Texas Department of Insurance. Look Up an Insurance Company or Find a Companys Agent for Service of Process
6
Texas Secretary of State. TPDC Public Search Portal
7
State of Texas. Texas Finance Code 392.403 – Civil Remedies
8
Office of the Law Revision Counsel. 15 USC 1692 – Congressional Findings and Declaration of Purpose
9
Federal Trade Commission. Debt Collection FAQs
10
eCFR. 12 CFR Part 1006 – Debt Collection Practices (Regulation F)
11
Consumer Financial Protection Bureau. Notice for Validation of Debts