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How to start a licensed Collection Agency in Iowa. State registration required. Surety bond: $15,000. Total initial fees: $900. Verified 2026-03-21. Data verified 2026-03-21. Source: LicenseMap (getlicensemap.com).
Collection Agency — CA
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42% of data points are verified against official sources. 16 fields based on preliminary research. 3 fields need verification. We recommend confirming details with your state's licensing authority. See sources below · Report incorrect data
Required
State License
Registration
License Type
$15,000
Surety Bond
$100
Application Fee
Required
Trust Account
$900
Total Initial Fees
All collection agencies must comply with these federal requirements regardless of state
VerifiedFDCPA (Fair Debt Collection Practices Act)
Applies
The Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.) prohibits abusive, deceptive, and unfair debt collection practices. Applies to third-party debt collectors collecting consumer debts.
CFPB Regulation F
Applies
CFPB Regulation F (12 CFR Part 1006), effective November 30, 2021, implements the FDCPA and governs communication practices including call frequency limits (7 calls per debt per 7-day period), electronic communication rules, and validation notice requirements.
FTC Oversight
Yes
The Federal Trade Commission enforces the FDCPA and takes action against debt collectors engaged in unfair or deceptive practices.
The Fair Debt Collection Practices Act (FDCPA) and CFPB Regulation F apply to all third-party debt collectors nationwide. The FDCPA prohibits abusive, deceptive, and unfair collection practices. Regulation F (effective November 30, 2021) establishes specific rules for communication frequency, electronic communications, and debt validation notices. The FTC and CFPB jointly enforce these requirements.
State-specific licensing and registration requirements
Mostly verifiedState License
Required
VerifiedLicense Type
Registration
VerifiedIndividual Collector Registration
Not Required
Mostly verifiedLicense Details
Collection agencies must register with the Iowa Attorney General under Iowa Code Chapter 537.
Collection agency licensing varies significantly by state. Most states require agencies to obtain a license or registration, post a surety bond, and maintain separate trust accounts. Some states also require individual debt collectors to be separately registered. Requirements may differ for in-state vs. out-of-state collection agencies.
Surety Bond & Insurance Coverage
Mostly verifiedSurety Bond Required
Yes
Bond Amount
$15,000
E&O Insurance
Recommended but not required by most states. E&O insurance protects against claims of negligence or failure to perform professional duties.
General Liability
Recommended minimum $1,000,000 general liability coverage for business protection.
Bond Details
Iowa requires a $15,000 surety bond to protect consumers from potential damages caused by collection agency misconduct.
Surety bond requirements for collection agencies vary widely by state, ranging from $5,000 to $300,000. The bond protects consumers from potential damages caused by collection agency misconduct. Annual bond premiums typically range from 2-10% of the bond face value, depending on the applicant's credit score and financial history.
| Fee | Amount |
|---|---|
Application Fee Initial application fee for Iowa collection agency registration | $100 |
License Fee Annual registration fee | $50 |
Renewal Fee Annual renewal fee | $50 |
Surety Bond Annual Premium Estimated annual premium (2-10% of bond face value, varies by credit) | $300-$1500 |
Total Initial Fees Includes application fee, license fee, and estimated surety bond premium | $900 |
Renewal Requirements & Ongoing Obligations
Mostly verifiedAnnual
Renewal Period
Not Required
Continuing Education
$50
Renewal Fee
Late Renewal Penalty
Late renewal may result in additional fees, license suspension, or requirement to reapply as a new applicant.
Continuing Education Details
Most states do not require continuing education for collection agencies. However, staying current on FDCPA amendments, CFPB guidance, and state regulatory changes is strongly recommended.
Regulatory Board
Most states require annual renewal of collection agency licenses. Failure to renew on time may result in late fees, license suspension, or the need to reapply as a new applicant. The surety bond must also be maintained continuously. While most states do not require formal continuing education, staying current on FDCPA amendments, CFPB guidance, and state law changes is essential.
Trust Accounts, Record Keeping & Prohibited Practices
Mostly verifiedTrust Account
Required
Iowa requires collection agencies to maintain a separate trust account for funds collected on behalf of creditors. Collected funds must be deposited within a specified timeframe and remitted to creditors according to contractual terms.
Record Keeping
3 years minimum
Records of all collection activities, correspondence, and financial transactions must be maintained.
Prohibited Practices
Required Disclosures
Collection agencies must maintain strict compliance with both federal and state regulations. Trust accounts protect consumer funds from commingling with agency operating accounts. Record keeping requirements ensure accountability and facilitate regulatory examinations. Violations of prohibited practices can result in license revocation, fines, and civil liability.
Iowa uses a registration system overseen by the Attorney General. The state has specific restrictions on communication with debtors during certain hours.
All collection agencies must comply with the federal Fair Debt Collection Practices Act (FDCPA) regardless of state licensing status.
CFPB Regulation F (effective November 30, 2021) limits collection calls to 7 per debt per 7-day period and establishes rules for electronic communications.
Iowa requires collection agencies to obtain a state registration before conducting collection activities.
A $15,000 surety bond is required in Iowa.
Iowa requires collection agencies to maintain separate trust accounts for funds collected on behalf of creditors.
Records must be maintained for at least 3 years in Iowa.
Explore requirements for other professional licenses in Iowa.
How this state compares to 50 others for this profession
Salary
#38 of 51
Based on May 2024 Bureau of Labor Statistics OEWS data for Bill and Account Collectors (SOC 43-3011)
Entry Level
N/A
25th percentile
Median
$37,800
-10% vs. national avg ($42,200)Experienced
N/A
75th percentile
Wage Distribution (Annual)
Source: BLS OEWS - Bill and Account Collectors (May 2024)
National employment projections for 2022-2032
Projected Growth
-2%
Average GrowthNew Jobs
N/A
over 10 years
Annual Openings
N/A
per year (avg.)
N/A currently employed nationwide (2024)
Source: BLS Employment Projections 2022-2032 (September 2023)
Government fees and exam costs to obtain your initial license
Note: These are government licensing fees only. Education/training program costs (tuition, books, etc.) are not included as they vary widely by institution.
Estimated total: 4–12 weeks
Timeline estimated from licensing requirements on this page.
4-12 weeks
Estimated processing time
Training materials for FDCPA compliance and collection agency licensing.
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Accessed 2025-01-15
Accessed 2025-01-15
Accessed 2025-01-15
Iowa requires a state registration for collection agencies. A $15,000 surety bond is required. All collection agencies must comply with the federal FDCPA and CFPB Regulation F. State licensing is managed through the Iowa Attorney General — Consumer Protection Division.
Requirements vary by state. Always verify current requirements with your state licensing authority and review CFPB guidance.