- #Collection agency how to#
- #Collection agency license#
Here are some of the laws that have authority over all debt collectors in the U.S.: That being said, there are some federal laws that debt collection agencies must comply with.
Obtain your employer identification numberĮvery business deals with money - but when your business platform is revolved entirely around collecting money, you can bet that there will be plenty of laws you must abide by.īecause each state has different rules and regulations, you’ll need to do the necessary research to determine what laws to look out for. Here is a list of common legal requirements that your state is likely to require: We will address getting licensed in other states later in the article. This means that if someone you are collecting from resides in a different state then you must be adequately licensed in that state. Being a collection agency can make things a little more complicated because you must be registered and possibly licensed in every state that you collect. Not to mention, they are always changing too (visit our blog and sign up for the Cornerstone Newsletter to keep up to date on the latest industry news).Įach new business must first register within their own state. In fact, the lengths you must go to meet all the legal requirements will depend greatly on the state you plan on operating in - as each state has its own unique requirements that business owners must meet. There are some fairly exhaustive and extensive requirements when it comes to opening up a business in any given state. Understand State Requirements for Opening a Business #Collection agency how to#
If you’re looking for tips on how to start a collection agency of your own, then take note of the following steps. Consumer debt is on the increase expanding the amount of debt available to collect (the most recent report from the Federal Reserve place the current amount of outstanding consumer credit at just over $4 trillion). Many agencies who have gone through the lengthy start-up process have had tremendous success in the industry.
If you don’t know exactly how to start a collection agency, it can seem like a daunting task.
#Collection agency license#
Don’t Get Caught Without the Proper License and Bonds - Work With Cornerstone Support Today.Obtain Your Collection Agency Bond and Debt Collection License Plan Out Expenses & Purchase Necessary Equipment
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