What is a Collection Agency License?
Collection Agency License Requirements: Step-By-Step Guide
Step #1: Determine Your State's Requirements
- Option #1: Research your state's requirements on your own, and determine the licensing requirements you must meet. This method is often time consuming, as confirming the requirements via government websites isn't particularly easy.
- Option #2: As an alternative to researching your state's requirements on your own, you can find out the exact requirements to obtain your license by selecting your state below.
Step #2: Meet All Necessary Requirements
- Obtaining/submitting a certificate of authority
- Submitting a business plan
- Providing financial statements
- Paying your license fee
Step #3: Obtain Your Collection Agency Bond
This is one requirement that many states have in place, and you'll likely need your bond in order to submit your license application. A collection agency bond protects your clients by ensuring you'll follow the regulations of your state whole operating your agency. You'll want to ensure you get your surety bond from a collection agency bond expert to avoid any delays or future headaches.
Step #4: Submit Your Collection Agency Application
Your state/the NMLS will provide you the necessary applications and paperwork that you'll need to fill out. Simply complete the application, and send it to the proper department with your surety bond. Be sure to double check all of your information before submitting it, as errors will likely increase turnaround time for your licensing approval.
Step #5: Receive Your Collection Agency License
Once you submit all the required information, your state/the NMLS will review your application, and if approved, will send your license directly to you. This process may take a few weeks depending on your state’s requirements and their complexities.