Arizona Collection Agency License Guide

In the state of Arizona, entities and individuals who solicit claims for collections – or collect claims owed or due to a third party – require a Collection Agency License.

Licensing is regulated and supervised by the Arizona Department of Financial Institutions (AZDFI).

However, new applications, renewals, and transition filings can also be submitted through the Nationwide Mortgage Licensing System (NMLS). While it is not required to use the NMLS website, the AZDFI encourages using it for more efficient and faster processing.

For this reason, we have only covered the application process through the NMLS. If you wish to apply using the AZDFI system, you can find more information on their Collection Agencies page.

Application forms are available on the Arizona NMLS page. The are a number of AZ company, branch, and individual licenses, but those relevant to people who wish to conduct collection business are:

• Collection Agency License Application form available here.
  • Collection Agency Branch License Application form available here.

Collection Agency License is required prior to obtaining a branch license.

Note: Document links may have expired, as they are updated regularly. If this is the case, go directly to the Arizona NMLS page to find the application you need.

• Company Form (MU1): When registering through the NMLS, this form serves as the application form for a Collection Agency License.
  • Resident/Registered Agent, Primary Contact Employees, and Qualifying Individual - Names must be listed in the in Company Form (MU1).
  • Other Trade Name - Agencies are not allowed to conduct business under more than one name. A separate license is required for each business name. If the agency wants to operate using a different name than the applicant’s legal name, it can get a “Trade Name”. This name must be listed in the Company Form (MU1) and a separate license will be issued (i.e. Arizona Collection Agency License – Other Trade Name #).

Note: You will have to pay an additional application fee for each registered trade name.

• Trade Name/Assumed Name Registration Certificates : If you wish to do business under a Trade Name, you must also upload a Trade Name Certificate from the Arizona Secretary of State
• Individual Form (MU2) :Direct Owners and Qualifying Individuals (specified in the MU1 form) are required to complete a FBI criminal background check and complete the MU2 form.
  • Disclosure Questions: - If you answered with “yes” to any of the Disclosure Questions in the MU2 form, you must provide a detailed explanation and upload all corresponding documents.

Note: After authorizing a CBC through the submission of both MU1 and MU2 forms, each individual should schedule an appointment to be fingerprinted, provided new prints are required

• Control Person (MU2) Attestation : The MU2 form must be attested by the applicable control person before you can submit it along with the Company Form (MU1).
• Unaudited (not compiled/reviewed) Financial Statement : It must be in accordance with Generally Accepted Accounting Principles and dated within 90 days of your fiscal year end. It should also include an income statement, balance sheet, and statement of cash flow. Start-up businesses are required to submit only an initial statement of condition.

Additional info about the forms highlighted above is available in the “Quick Guides” page.

Applicants must submit a company bond furnished by a surety company. Note that the full legal name or “Other Trade Name” insured must exactly match the one used in the MU1 form.

The bond amount depends on the gross annual income of the licensee:

• Income is not over $250,000 - bond amount: $10,000
• Income is $250,001 to $500,000 - bond amount: $15,000
• Income is $500,001 to $750,000 - bond amount: $25,000
• Income is $750,001 and over - bond amount: $35,000

All fees are non-refundable and non-transferable.

• AZ Application Fee: $1,500
• AZ License/Registration Fee: Upon approval of your application, you’ll be sent an invoice through the NMLS which can be paid directly on the website. License fees are determined based on when your license is issued:
  • License issued in Feb/Mar/Apr: $600.00
  • License issued in May/Jun/Jul: $450.00
  • License issued in Aug/Sep/Oct: $300.00
  • License issued in Nov/Dec/Jan: $150.00
• FBI Criminal Background Check for (MU2) Individual: $36.25 per person.

There are no paper licenses for this license type. All applications and accompanying documents must be submitted via the NMLS website.

If you have any questions, contact the AZDFI licensing staff at (602) 771-2800 or [email protected]. For assistance with your NMLS account, contact the NMLS call center at (855)-665-7123.