Each state has the right to enact its own set of collection laws and requirements. For agencies seeking nationwide compliance, this creates a gauntlet of regulations that is not only confusing, but can prove costly if misunderstood or neglected. Don’t get caught collecting in a state where you are not appropriately licensed. Learn more about how we can help ensure you’re covered.
Note that the above information is not intended to be, nor is it, legal advice. It is intended for informational purposes only. We make no warranty, express or implied, as to the accuracy or reliability of this information. We are not attorneys. You must retain your own attorney to receive legal advice. While Cornerstone Support strives to provide the most current and accurate state licensing information, the responsibility for any decision related to state licensing or agency compliance is solely yours.
It should be noted that several of the aforementioned states provide exemptions to agencies depending on a number of specific organizational and operational factors. Here is a summary of the possible statutory exemptions available to debt collectors:
Out-of State Agency Exemption
Certain states provide exemptions from their state debt collection license requirements for those entities that do not maintain a physical presence in their state and are only collecting debts via interstate communication (phone, mail, etc.) for a creditor that is not physically located in their state.
Certain states provide exemptions from their state debt collection licensing requirements for those entities that collect 100% commercial (business to business) debt.
Debt Buyer Exemption
Certain states provide exemptions from their state debt collection licensing requirements for those entities that purchased the charged-off accounts that they are attempting to collect. Please note, however, that the only entity entitled to such an exemption is the corporate entity that purchased the bad debt. Any other entity (related party or not) would not qualify for the debt buyer exemptions.
Collection Attorney/Collection Law Firm Exemption
Certain states provide exemptions from their state debt collection licensing requirements to collection attorneys and/or collection law firms. Certain of these statutory exemptions are available to all collection attorneys and/ or collection law firms and others are reserved for those attorneys licensed to practice law in the state granting the potential exemption.