Minnesota Collection Agency License Guide

In Minnesota, any entity which operates and engages in the business of collecting any bill, account, or other indebtedness for others is required to obtain a Collection Agency License from the state.

The Minnesota Department of Commerce regulates and supervises the Collection Agency licenses.

The licensing application process for companies and individuals is handled by Pulse Portal, a credentials management system for licensing and certification programs which allows entities to apply or renew a license online.

All MN Collection Agency license applications must be submitted online through Pulse Portal. To apply for a license, follow the steps provided on the site.

For further information, you may visit the Minnesota Department of Commerce’s Debt Collections page .

Note: Each Collection Agency branch location must obtain a separate license.

Apart from submitting a completed application via Pulse Portal, applicants are also required to fax the following documentation to the MN Department of Commerce (along with a copy of the application confirmation page from Pulse Portal):

• Certificate of Assumed Name: A copy of the certificate is required for all applicants operating under a name different from their legal name. The Certificate of Assumed Name must be stamped and issued by MN Secretary of State.

• Formation Documents: Fax a certified copy of the applicable documentation:

  • Corporations: Articles of Incorporation, filed and stamped by the Secretary of State.

  • Limited Liability Companies: business organization documents.

  • Partnerships: partnership agreement.

• Disclosure of Owners, Partners, Officers: The form must include names and addresses of officers, directors, owners, shareholders (with at least 25% shares), partners, or employees with management/policy control in the company.

In Minnesota, Collection Agency licensees are required to furnish and maintain a corporate surety bond of at least $50,000 (but no more than $100,000).

Bond amounts are based on the amount received by the collection agency from Minnesota debtors over the previous calendar year. The $50,000 bond amount will be increased by $5,000 for each $100,000 received, less the amount of commission earned for those collections for the previous year.

• Bond Amount: $50,000 - $100,000

Fees must be paid online via Pulse Portal. Credit card processing fees will be charged as well.

• Application fee: $9.95

• Collection Agency Licensing Fee: $1,000

• Collection Agency Branch License Fee: $500

Complete and submit your MN Collection Agency License application via Pulse Portal. Fax all applicable additional documentation to the Minnesota Department of Commerce at (651)539-0111.

For assistance or further information regarding the licensing process, you may contact the Minnesota Department of Commerce at (651)539-1599.