Surety bonds of any kind exist to putting people's minds at ease, plain and simple. Collection agencies, because they deal with sensitive personal financial data and handle money, are considered risky. Thus they are required by most states to take out a Surety Bond to assure the public and the collection agency's clients that the agency is obeying all regulations and laws in their state. It says that the agency is dependable, is not using underhanded means to collect, or is otherwise not conducting business unprofessionally. It also ensures that moneys collected will be distributed through expected channels and that all funds will be accounted for.