How to choose a debt collection agency in Connecticut
By Kai Greenspan, Founding Editor
The bond a Connecticut consumer collection agency files for its main office and again for each branch office under Section 36a-802, unless it is engaged solely in debt buying. It is conditioned on the agency accounting for all funds it collects, and a person damaged by the wrongful conversion of those funds may proceed on it.
Source: cga.ct.gov · Last checked: November 3, 2026
The five steps, in order
| Step | What to do, and why it comes in this order |
|---|---|
| 1. Verify the license on the Department of Banking's list | Download the Department of Banking's list of licensed consumer collection agencies from https://portal.ct.gov/dob/consumer-credit-licenses/consumer-credit-licenses/consumer-collection-agencies-licensed-in-connecticut and find the agency under its legal name. Connecticut licenses each office: the agency needs a license for its main office and one for each branch office where its business is conducted (Section 36a-801), so check the office you will deal with. The list shows current licensees only, with no dates, and the Department directs readers to NMLS Consumer Access to verify a license. |
| 2. Confirm the bond that stands behind the money | Every licensed agency except one engaged solely in debt buying files a bond of $50,000 for its main office and $50,000 for each branch office, conditioned on accounting for all funds it collects (Section 36a-802). Any person damaged by the wrongful conversion of a creditor's or a debtor's funds received by the agency may proceed on it. So for a creditor the bond is protection for you, and it is worth asking who the surety is. |
| 3. Match the agency to your debt type | Consumer debt, owed by individuals for personal, family or household purposes, is federally regulated under the FDCPA. Its conduct rules apply to a collection agency collecting for clients, and to a debt buyer when the buyer meets the FDCPA's definition of a debt collector, which collecting its own purchased accounts does not do by itself (Henson v. Santander Consumer USA, 2017). Connecticut's definition of a consumer collection agency covers collecting for others and debt buying, so a licensed Connecticut agency may be a third-party collector, a debt buyer, or both. Ask which kind of accounts the agency actually works, and whether it collects for clients or buys. |
| 4. Read the public complaint record in context, and check any certifications at source | Search the agency in the CFPB Consumer Complaint Database and read the count in context: the CFPB says its database “is not a statistical sample of consumers’ experiences in the marketplace”, and each complaint records how the company responded and whether it responded on time. Certifications are checked against the issuing body, never the agency’s own claim. Where the Banking Commissioner has acted against a licensee, the Commissioner’s own order is the document to read. |
| 5. Only then talk fees, and get everything in writing | Collection work is often priced on contingency: the agency keeps an agreed share of what it recovers. This page cites no public benchmark for the percentage, so ask each agency for its rate in writing, by debt age band, and pin down the cases that cause disputes: direct payments made to you after placement, part payments, recalled accounts and legal costs. Connecticut sets the outer limit on remittance: an agency may not fail to account for and remit undisputed money within sixty days from the last day of the month it was collected (Section 36a-805), and an agency collecting for others keeps that money in trust accounts (Section 36a-811). Settle the remittance terms in the agreement. |
Step-by-step list instructions: verify a Connecticut license. The ranked list, and exactly how it is ranked: Connecticut agencies. The list itself: the Department of Banking’s page.
Source: portal.ct.gov · Last checked: November 3, 2026
The questions worth asking before you sign
Once an agency has passed the public checks, the remaining risk lives in the agreement, and the disputes that sour agency relationships are rarely about the headline rate. Ask each shortlisted agency, in writing:
- What is your Connecticut license number for the office we will deal with? Each office has its own, and the Department’s list shows it.
- Who is your surety, and is your bond in force today? It is $50,000 for each office, unless the agency only buys debt, and it stands behind the money the agency collects.
- Do you collect for clients, buy debt, or both? Connecticut’s definition covers both, and the answer changes what the relationship is.
- When and how will you pay us what you collect? Connecticut’s outer limit is sixty days from the end of the month the money came in, so write tighter terms down if you want them.
- What is your rate, by debt age band, in writing? Ask about direct payments made to you after placement, part payments, recalled accounts and legal costs, because that is where disputes start.
- Which law firm handles suits? A Connecticut agency may not institute judicial proceedings on behalf of others.
Sources: Connecticut General Statutes Sections 36a-801, 36a-802 and 36a-805 (2026 Supplement) and Section 36a-811 · quoted 3 November 2026
Common questions about choosing in Connecticut
Does a collection agency have to be licensed in Connecticut?
Yes, for each office. Connecticut General Statutes Section 36a-801 says "No person shall act within this state as a consumer collection agency, directly or indirectly, unless such person has first obtained a required consumer collection agency license for such person's main office and for each branch office where such person's business is conducted." An agency based in another state needs the license too when it collects from Connecticut residents in the ways the same section sets out.
The agency we want to use is not on the Connecticut list. Is that a problem?
It is a question to resolve before you sign. The list shows current licensees only, so a license newer than the list's date will not be on it yet, and a Connecticut lawyer is not a consumer collection agency at all (Section 36a-800). Ask the agency whether it holds a Connecticut license for the office you will deal with and, if not, why it says it does not need one, and get the answer in writing.
What does the bond cover?
Section 36a-802 says the bond "shall be conditioned that such licensee shall well, truly and faithfully account for all funds entrusted to the licensee and collected and received by the licensee in the licensee's capacity as a consumer collection agency", and that any person damaged by the wrongful conversion of creditor or debtor funds the agency received may proceed on it. It is $50,000 for the main office and $50,000 for each branch office, and the aggregate liability under it cannot exceed that sum. A business engaged solely in debt buying files none.
How soon must a Connecticut agency pay us what it collects?
Section 36a-805 forbids an agency to "refuse or fail to account for and remit to its clients all money collected which is not in dispute within sixty days from the last day of the month in which said money is collected". The same section requires a written report on your claims when you ask in writing, at intervals of not less than ninety days. You can agree tighter terms in the contract.
Can a Connecticut agency sue our debtors for us?
No. Section 36a-805 says no consumer collection agency shall "institute judicial proceedings on behalf of others", or furnish legal advice. A lawsuit goes through a lawyer. Ask the agency which law firm it works with if accounts may end up in court.
Does Debt Collection Index rank Connecticut agencies by how much they recover?
No, and no state page on this site does. Recovery rates are self-reported, unaudited and not comparable between agencies, so we do not publish them or rank on them. Connecticut's list carries no license dates, so Connecticut agencies are grouped by the date the Connecticut Business Registry records for them, listed alphabetically within each group, and our Connecticut page says exactly how. Companies we could not match to a registry entry are listed without a ranking.