Licensing
Collection agency license
A state license most debt collectors need before contacting consumers in that state. Many states require a surety bond before they issue it.
A collection agency license is the state authorization a business needs to collect debts owed to others. Requirements, bonds, and even whether a license exists vary widely by state.
Because rules differ so much, a debt collector expanding nationally generally maps each state separately, pairing the license with the bond and registrations that state expects. The federal FDCPA applies on top of state licensing.
Related terms
Where this comes up
Collection agency license is one piece of getting and keeping a business licensed. We handle the filings, bonds, and renewals that surround it across every state where you operate.