The first step for a new debt collection agency is to become fully licensed in the domestic state of the agency. The agency should then determine in what other states they would need to be licensed. Licenses are generally required when an agency plans to collect debts from residents of that state. The application process usually takes about three months.

Common application requirements include reference letters, samples of collection letters, and lists of all collectors/employees of the agency. Background checks are typical as part of the licensing process and fingerprints of the applicants are sometimes necessary. Every state application is different and all regulatory agencies reserve the right to request further information from the applicant.

Many collection agency licenses require the agency be bonded against loss while some licenses require a physical office in the state and a resident manager. Other states require that the manager of the agency take a state examination. Application fees can be as high as $1,500 per year and most licenses must be renewed either annually or biennially.

Unlicensed collection agencies may be penalized by the state and sued by the debtors they target. State penalties for unlicensed operation of a debt collection agency include fines up to $50,000 and imprisonment up to 10 years. If sued by debtors, unlicensed agencies may face even larger fines and longer criminal sentences.

1. Our specialists will help you get organized, get informed and get licensed.

2. Our flat rate service fee will save you money by taking a time-consuming task off of your desk for a fraction of what it would cost elsewhere.

3. We will ensure that your application is filed correctly and that you are operating in compliance with the law. Let us do what we do best so your business can do what it does best.