State Licensing

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.

Navigating State Licensing

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.  While Cornerstone seeks to keep the following map current, the information enclosed is not a legal source of information.  The responsibility related to state licensing or agency compliance lies with the agency.

Some states provide an exemption. Here is general information on some of the more common types of statutory exemptions provided in some states:

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/or are only collecting debts via interstate communication (phone, mail, etc.) for a creditor that is not physically located in their state.

Commercial Exemption

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.

Learn More

Collection Agency Licensing Catalog | State by State Debt C


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