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.
