The Arizona Department of Insurance and Financial Institutions (DIFI) has introduced a new annual reporting requirement for licensed collection agencies: the Report of Annual Income (Form L-CAR). The report is used to determine the required surety bond amount under ARS § 32-1021(B), based on gross annual income from all business transacted in Arizona during the preceding year.

Bond Amounts Based on Gross Annual Income:

• Up to $250,000: $10,000 bond
• $250,001–$500,000: $15,000 bond
• $500,001–$750,000: $25,000 bond
• Over $750,000: $35,000 bond

“Business transacted in Arizona” includes:

• Debts collected from Arizona residents, regardless of agency location
• Collections made from Arizona offices, regardless of debtor location
• Collections on behalf of Arizona-based creditors

Key Deadline:
Form L-CAR must be submitted to FELicensing@difi.az.gov by September 1 each year. Failure to submit will render the license ineligible for renewal.

Collection agencies should review their Arizona income annually and ensure Form L-CAR is completed accurately and submitted on time. For guidance or support, please contact FS Vector.