Collector - September 2020 - 44

Licensing Information at a Glance
ACA SearchPoint gives members quick access to state licensing information.

S

ecuring a collection agency license
can be a complicated process,
and while some states do not have
licensing requirements for debt collectors,
the majority of states do require some form
of license or registration process. Licensing
requirements vary considerably from state
to state. That's why, 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.
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
out-of-state debt collectors.
A number of states require a licensee
to maintain a trust account and/or an
in-state bond. The amounts required for
bonds vary by state, as do the requirements
regarding whether trust accounts must be
maintained in a resident bank. Even states
with no trust account requirements may still
place obligations on how the debt collector
handles remittances to its clients.
The fees associated with licensing also
vary by state and can range from under $100
to over $1,000. When evaluating the cost
of a license, collectors should also consider
whether licenses are renewed annually or
extend for a longer period of time.
Because of the wide inconsistencies
in state licensing requirements, debt

44

collectors should closely review the
particular license requirements for each
state in which they intend to collect.
Luckily, ACA compiles state licensing
laws in one place for its members. Recently
updated ACA SearchPoint #3005, ACA's
Interstate Licensing Chart, provides an
at-a-glance listing of state license
requirements, including available
exemptions. Other ACA SearchPoint
documents about 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.
To access ACA SearchPoint, visit
acainternational.org/searchpoint.

Calling All Writers!

We're accepting articles from our readership.*
Collector magazine invites credit and collection professionals
of all levels into a community of experts who share their
hard-won experience through in-depth process and
data-driven articles.
Send your article pitch or summary
to Anne Rosso May at either
» rosso@acainternational.org or
» Anne Rosso May
Collector Magazine
4040 West 70th Street
Minneapolis, MN 55435

*Qualifying participation for
the Continuous Service Award

ACAINTERNATIONAL.ORG


https://www.acainternational.org/searchpoint http://www.acainternational.org/searchpoint http://www.ACAINTERNATIONAL.ORG

Collector - September 2020

Table of Contents for the Digital Edition of Collector - September 2020

Collector - September 2020 - Cover1
Collector - September 2020 - Cover2
Collector - September 2020 - 1
Collector - September 2020 - 2
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