The infographic explains what a collection-agency surety bond is and why it exists. It shows that this type of bond involves three parties: the collection agency (the principal), the regulatory authority or licensing body (the obligee), and the surety company that issues the bond. The bond acts as a financial guarantee: it ensures that the agency follows laws and ethical standards in its debt-collection practices. If the agency violates those rules — such as through fraud, misuse of funds, unfair fees or unethical treatment — affected parties may file a claim against the bond. If the claim is valid, the surety pays damages to the claimant.

The agency is then responsible for reimbursing the surety. If the claim is invalid, the bond remains intact but the agency may still have to reimburse investigation costs. The infographic also outlines how the cost of obtaining such a bond is determined: the bond premium (what the agency pays) depends largely on factors like the size of the bond, the agency’s credit history, and applicable state regulations. Typically, the premium might range from a small percentage (for example 1–15%) of the total bond amount.

Finally, the graphic suggests that securing a bond is often a precondition for legally operating as a collection agency — offering a mechanism of protection for clients, debtors, and the broader public by holding agencies accountable and allowing recourse in case of misconduct.