Cornerstone Support receives frequent requests from agencies in need of assistance related to their state collection licenses. While requests come from agencies with an array of licensing concerns, one we often assist with is branch licensing compliance.
Whether neglected or simply misunderstood, licensing branch locations continues to be an area in need of improvement. Although incorrect, it is not uncommon to find collection agencies who have licensed the organization on an entity level with little or no regard to the physical location(s) of the respective call centers/collectors.
State Laws Vary
Each state has the right to enact its own set of collection laws and requirements. Most jurisdictions have very different statutory regulations and application requirements. Certain jurisdictions require that all locations from which debtors are communicated with maintain a separate branch license. The branch license can be as involved as the original debt collection license application or as uncomplicated as a letter notifying the appropriate jurisdiction of the branch location.
Unlicensed Collection Activity Is Costly
It’s important to note that any communication with a debtor from an unlicensed branch location is considered unlicensed collection activity. It carries all of the same consequences of unlicensed collection activity to both the agency and the organizations they represent (creditors and debt buyers). This can prove costly, not only to collection agencies, but also to the creditors that they represent.
For a summary of the jurisdictions that require some level of branch licensing, contact Cornerstone Support today. Our highly educated experts can confirm where you may or may not need licensing for your branch.