Debt Collection Licensing and Bonds 50-State Survey
| State | Licensing Required? | License Fee | Bond Required? | Bond Amount | Unlawful Acts | Code Section |
|---|---|---|---|---|---|---|
| Alabama | Yes | $100 (over 20,000 populaiton); $25 (under 20,000 populaiton) | No | N/A | N/A | Alabama Code Section 8-19-5 (general consumer protection) |
| Alaska | Yes | $100 | Yes | $5,000 | Use of forms imitating court documents, falsification of records, unfair trade practices | Alaska Statutes Section 45.50.471 (general consumer protection) |
| Arizona | Yes | $1,500 | Yes | $10,000 (base) + determined by gross annual income | Receiving compensation from unlicensed person, false advertising, failure to pay client proceeds, record-keeping violations, failure to notify of address change | Arizona Revised Statutes Title 32, Chapter 9 |
| Arkansas | Yes | $125 + $20/employee | Yes | $10,000-$50,000 per location | False statements on application, sale/transfer of ownership, aiding unlicensed persons, publishing "deadbeat" list, impersonating law enforcement, use of profanity, violence, threats | Ark. Code Ann. § 17-24-301, § 17-24-310 |
| California | Yes | $350 application + investigation fee | Yes | $25,000 | Unlawful threats, obscene language, failure to disclose identity, unnecessary ringing, contacting employer/family, false representations | Financial Code Division 25, Sections 100000, et seq. |
| Colorado | Yes | Determined by collection agency board | Yes | $12,000 + additional amounts (up to $20,000 total) | Falsification of information, harassment/abuse, deceptive forms | Colorado Revised Statutes § 5-16-101 et seq. |
| Connecticut | Yes | $500 | Yes | $50,000 per business | Use of forms imitating attorney documents, soliciting claims under deceptive contract, commingling money | Connecticut General Statutes Section 36a-800 et seq. |
| Delaware | Yes | N/A | Yes | $50,000 | Misappropriation of money, settling debts for more than 50% without assent | Delaware Code Title 6, Chapter 25 |
| Florida | Yes | $500 | Yes | $50,000 | Simulating law enforcement, using/threatening violence, communication with employer/third party, obscene language | Florida Statutes Chapter 559, Part VI |
| Georgia | No | N/A | No | N/A | N/A | Georgia Code Title 7, Chapter 3, Article 2 |
| Hawaii | Yes | N/A | Yes | $25,000 (first office); $15,000 (each additional office) | Threats, coercion, dishonesty, false/deceptive statements, commingling funds, failure to register, failure to notify of changes | Hawaii Revised Statutes Chapter 443B |
| Idaho | Yes | N/A | Yes | $15,000 | False/fraudulent representation to eliminate/reduce debt | Idaho Code Title 26, Chapter 22 |
| Illinois | Yes | $100 + $30/branch | Yes | $25,000 | Violence, threat of harm, harassment, disclosing information affecting reputation, failure to disclose name | Illinois Compiled Statutes Chapter 225, Act 425 |
| Indiana | Yes | $100 + $30/branch | Yes | $5,000 per office | Operating without license, failure to render account/pay client, failure to keep separate client accounts | Indiana Code Title 25, Article 11 |
| Iowa | Yes | $250 (debt management) + $100 investigation | Yes | $25,000 (debt management) | Threats, coercion, oppression, harassment, abuse, unauthorized communication, false representation | Iowa Code Chapter 537 |
| Kansas | No | N/A | No | False representations, concealment of material facts, unconscionable acts | Kansas Statutes Chapter 16a, Article 6 | |
| Kentucky | No | N/A | No | N/A | N/A | Kentucky Revised Statutes Chapter 286.9 |
| Louisiana | Yes | N/A | No | N/A | N/A | Louisiana Revised Statutes Title 9, Section 3534.1 |
| Maine | Yes | Up to $800 | Yes | Reasonable necessity | Harassment, abuse, false/misleading representations, unfair practices, reporting to consumer reporting agency | Maine Revised Statutes Title 32, Chapter 109-A |
| Maryland | Yes | N/A | Yes | $50,000-$1,000,000 | Use/threat of force/violence, false disclosures, unauthorized communication, harassing behavior, obscene language | Maryland Code, Business Regulation § 7-101 et seq. |
| Massachusetts | Yes | N/A | Yes | $25,000 | Harassing/embarrassing communications, use of forms simulating judicial process, communication with debtor when represented by attorney | Massachusetts General Laws Chapter 93, Section 24 |
| Michigan | Yes | N/A | Yes | $5,000-$50,000 | Misleading/deceptive communication, use of forms simulating judicial/governmental documents, use/threat of harassment/violence/obscene language | Michigan Compiled Laws Section 339.901 et seq. |
| Minnesota | Yes | N/A | Yes | $5,000 + $5,000/$100,000 received (max $100,000) | N/A | Minnesota Statutes Chapter 332 |
| Mississippi | Yes | N/A | Yes | $50,000 | Purchasing debt/obligations, lending money/providing credit, obtaining mortgage/security interest, operating as debt collector, negative amortization | Mississippi Code Title 85, Chapter 18 |
| Missouri | No | N/A | Yes | $50,000 (no consumer money); $100,000 (consumer money) | N/A | Missouri Revised Statutes Chapter 425 |
| Montana | Yes | N/A | Yes | $50,000 | Purchasing debt/obligations, lending money/providing credit, obtaining mortgage/security interest | Montana Code Annotated Title 31, Chapter 1, Part 8 |
| Nebraska | Yes | $250 | N/A | Nebraska Revised Statutes Chapter 45, Article 6 | ||
| Nevada | Yes | $500 + $200-$600 per license | Yes | $35,000 | Deceptive means to collect debt, operating from unlisted location, operating without license, harassing employer, advertising for sale of claim | Nevada Revised Statutes Chapter 649 |
| New Hampshire | Yes | N/A | Yes | $25,000 | Unfair, deceptive, unreasonable manner (harassment, threats, unauthorized communication) | New Hampshire Revised Statutes Chapter 358-C |
| New Jersey | Yes | N/A | Yes | $5,000 | Simulating summons/complaint/court order | New Jersey Statutes Title 45:18-1 et seq. |
| New Mexico | Yes | N/A | Yes | $5,000 | N/A | New Mexico Statutes Chapter 61, Article 18A |
| New York | No | N/A | No | N/A | N/A | New York General Business Law Article 29-H |
| North Carolina | Yes | $1,000 | Yes | $10,000 | Simulation of government agent, disclosure/threat to disclose affecting reputation, unauthorized communication | North Carolina General Statutes Chapter 58, Article 70 |
| North Dakota | Yes | $400 application + $400 annual + $50/branch | Yes | $50,000 | N/A | North Dakota Century Code Chapter 13-05 |
| Ohio | No | No | N/A | N/A | Ohio Revised Code Chapter 1319 | |
| Oklahoma | No | N/A | No | N/A | Extortionate extensions of credit, unconscionability, unlawful practices | Oklahoma Statutes Title 14A, Article 6 |
| Oregon | Yes | N/A | Yes | $10,000 | Force/violence, threats of arrest/prosecution, threats to seize/attach/sell property, profane/obscene language, communication with employer/family | Oregon Revised Statutes Chapter 697 |
| Pennsylvania | Yes | N/A | Yes | Greater than total amount of consumer funds held | Collecting unstated amounts, coercion/intimidation, collecting money for services other than from client | Pennsylvania Consolidated Statutes Title 73, Chapter 21 |
| Rhode Island | Yes | $750 | No | Harassment/abuse, false/misleading representations, unfair practices, unauthorized communication | Rhode Island General Laws Chapter 19-14.9 | |
| South Carolina | No | N/A | No | Unconscionable conduct | South Carolina Code Title 37, Chapter 20 | |
| South Dakota | No | N/A | No | Debt adjusting | South Dakota Codified Laws Chapter 54-3 | |
| Tennessee | Yes | N/A | Yes | Determined by number of employees | Sale/use of forms simulating legal forms, unauthorized practice of law | Tennessee Code Title 62, Chapter 20 |
| Texas | Yes | N/A | Yes | $10,000 (base); $25,000-$100,000 (if holding money); $50,000 (if not holding money) | Harassment, abuse, unfair/unconscionable means, fraudulent/deceptive representations, deceptive use of credit bureau name, use of unlawful debt collector | Texas Finance Code Title 5, Chapter 392 |
| Utah | Yes | N/A | Yes | Secured debt in plan, misappropriation/misapplication of money, settling debt without assent, power of attorney to settle debts | Utah Code Title 12, Chapter 1 | |
| Vermont | Yes | N/A | Yes | $50,000 | Purchasing obligations, lending money/providing credit, referral payments | Vermont Statutes Title 8, Chapter 83 |
| Virginia | Yes | N/A | Yes | $25,000-$350,000 | Purchasing any obligation of debtor, lending money/providing credit | Virginia Code Title 6.2, Chapter 20 |
| Washington | Yes | Determined by director of licensing | Yes | $5,000 | Harassment, abuse, false/misleading representations, deceptive forms, unauthorized communication | Washington Revised Code Chapter 19.16 |
| West Virginia | Yes | $30 | Yes | $5,000 | Unlicensed practice of law, threats/coercion, oppression/abuse, unreasonable publication, fraudulent/deceptive/misleading representation, unfair/unconscionable means, postal violations, deceptive/oppressive telephone calls | West Virginia Code Chapter 47, Article 16 |
| Wisconsin | Yes | $1,000 (agency); $15 (individual) | No | Harassment, abuse, false/misleading representations, furnishing deceptive forms, unauthorized communication | Wisconsin Statutes Chapter 218, Subchapter VI | |
| Wyoming | Yes | Set by collection agency board | Yes | $10,000 | N/A | Wyoming Statutes Title 33, Chapter 11 |
This information is provided "as is" without any representations or warranties, express or implied. No guarantees are made regarding this information's accuracy, reliability, completeness, or timeliness.
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