# Debt Collection & Debt Buying Licensing Every state writes its own collection rules, and one lapsed license can cost you a creditor relationship. Debt collection and debt buying are core to what we do: we license third-party agencies, debt buyers, collection attorneys, and ARM operators in every state that requires it, and keep every renewal current. ## Licensing for Every ARM Entity Type The accounts receivable management industry is one of the most heavily regulated corners of financial services, and most licensing providers treat it as a sideline. We do not. For over two decades, debt collection and debt buying have been core to Cornerstone, and we have helped hundreds of ARM companies get licensed, stay in good standing, and grow. Whether you are a third-party collection agency, a first-party servicer, a debt buyer, or an attorney collecting on behalf of clients, we know the state rules and file them right. ## How to get licensed 1. **Good Standing Assessment**, We analyze your business model and, in coordination with our attorney partners, help identify which licenses may apply in every state where you want to operate. 2. **Application Preparation**, We prepare all applications, gather required documentation, and coordinate background checks, financial statements, and surety bonds. 3. **Filing & Follow-Up**, We submit applications to each state and actively follow up with regulators to keep the process moving. 4. **Ongoing Filings**, After licensing, we manage your renewals, regulatory filings, and filing calendar so you never miss a deadline. ## Frequently asked questions ### How Many States Require Collection Agency Licenses? Most states require some form of licensing for third-party debt collectors. The exact requirements vary, with some states requiring full licenses, others requiring registrations, and some requiring only surety bonds. Cornerstone tracks requirements across all 50 states and territories. ### How Long Does It Take to Get Licensed? Processing times vary by state, ranging from a few weeks to several months. Some states like California and New York have particularly lengthy processes. We help expedite applications wherever possible and advise on which states to prioritize. ### Do Debt Buyers Need Different Licenses Than Collection Agencies? In many states, active debt buyers need the same licenses as third-party collection agencies. However, some states have separate licensing categories for debt buyers, and passive debt buyers may face different requirements than active ones. ### What About CFPB Registration? The CFPB requires certain larger participants in the debt collection market to register. Cornerstone can assist with federal registration requirements in addition to state licensing.