# Do I need a license to buy debt? *Reviewed 2026-05-15* ## Short answer In many states, yes. Debt buyers who purchase accounts and then collect on them are increasingly licensed as collection agencies or under a separate debt-buyer category, and a surety bond is often required. A few states treat passive debt buyers, who outsource all collection, differently from active buyers who collect themselves. States have moved toward licensing the businesses that purchase charged-off accounts, not only the agencies that collect for others. Where a debt-buyer license exists, buying and then collecting on consumer debt usually triggers it. Some states distinguish a passive debt buyer, who hires a licensed third party to collect, from an active buyer who collects directly. Because you take ownership of the accounts, the licensing question follows the consumers whose debts you bought, so a portfolio spread across states can require several licenses and bonds. ## Related - [Licensing services](/services) - [State licensing summaries](/state-laws) - [Contact our team](/contact)