From Collector: Licensing Information at Your Fingertips
ACA's SearchPoint documents on state licensing requirements provide a compilation of state licensing laws.
7/26/2019 8:00 AM
Obtaining a collection agency license can be a complicated process, and while some states do not have licensing requirements for debt collectors, most states do require some form or license or registration process.
Licensing requirements vary considerably from state to state. Prior to obtaining a license, debt collectors need to determine not only which states require a license, but also any potential licensing exemptions for out-of-state debt collectors, bonds and trust account requirements, and other conditions of licensure such as in-state office requirements, according to this month’s ACA SearchPoint® article in Collector magazine.
Debt collectors must review state license requirements with care because certain debt collectors may be exempt from a given state’s license requirement. In some instances, in order to qualify for the out-of-state licensing exemption, debt collectors may not maintain a physical presence in the state and may only collect debts by use of interstate communications (typically telephone, mail or fax).
Some states may also offer a reciprocity exemption for debt collectors who are already licensed in a state that features a similar reciprocity exemption for debt collectors.
Luckily, ACA compiles state licensing laws in one place for its members. ACA’s Interstate Chart (ACA SearchPoint® document #3005) provides members an at-a-glance listing of state license requirements, including available exemptions. Other related ACA SearchPoint® documents surrounding licensing requirements include documents #1133, State Licensing/Registration Contact Information and Fees; #2041, Trust Account Information; #2035, State Manager Requirements; #2019, State Registration Requirements for Individual Collectors; and #1160, State Branch and Resident Office Requirements.
Have you checked out ACA’s member-only SearchPoint® library? ACA SearchPoint® is filled with documents that put important compliance information related to the FDCPA, FCRA, TCPA, State laws and many other topics at your fingertips.
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