Frequently Asked Questions

What do we need before getting started?

Once you begin the Collection Agency license application process, you are going to need gather certain documents that will be required with your application. The most common supporting documents are:

  1.             Articles of Formation
  2.             Certificates of Good Standing
  3.             Corporate Financial Statements
  4.             Surety Bonds
  5.             Qualification Authority from the New State

Each state maintains its own list of required documents in order to obtain a Collection Agency license in that state, so more items may be required. If you do not have any of these documents we can help you obtain them.

How long does it take to get a Collection Agency license?

The time for each state to process a Collection Agency license varies by the state licensing authority. Certain states take longer than others to process a Collection Agency license application. Call us to discuss the processing times of the specific states you are interested in.

What does it mean when a state is unregulated?

The circumstances for each state vary if it does not have its own regulatory agency. Typically it means that a Collection Agency company must register to do business in this state, but the company does not need to obtain a separate, specialized collection agency license. Even if a state does not have a separate regulatory agency, this does not mean the state does not have collection laws that must be followed. Federal law as well as individual state laws still dictate what actions a Collection Agency must follow. Both Federal and State laws must be complied with or else the Collection Agency risks civil and possibly criminal penalty and lawsuits.

Do individual employees have to have their own additional license?

Each state varies in its requirements for whether an individual employee must have a separate license. Most states do not require individuals to obtain their own license. Call us with the states you are interested in.

What if my company has credit issues or a criminal incident on record?

Each state collection licensing authority weighs each of these items differently. Bad credit or a past bankruptcy does not necessarily mean an immediate denial for all state collection authorities. Certain criminal incidents are not a barrier to obtaining a collection license either. We have successfully assisted clients with these types of issues and helped them to properly obtain their licenses with full and truthful disclosure.

How recently the incident occurred and the nature of the incident factor into many of the state collection license authorities’ decision on whether to issue a collection license. If you do have these concerns, no guarantee can be made regarding the outcome, but it should not necessarily be a barrier.

More questions? Call us!

 

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