The number of companies entering in the loaning business has expanded the arena of money market. In order to compete with other companies and gain prominence in the market. The companies providing loan to the person have softened the rules regarding the loan. Thus, more and more people are applying for the loan and getting the loan. Thus, the probability of number of people with bad debt is increasing and hence the prospect of the debt collector is brightening.
How to apply for the debt collector license?
In order to apply for the debt collector license your agency must perform the below mentioned functions which are as follows:
- The company must appoint a person as registered agent. This agent is responsible for the collection of various legal and tax documents. The company is supposed to appoint an agent in every state it is operating and got the license.
- You must obtain a certificate of authority from the secretary of state. This is the pre requisite to obtain a debt collection license.
- In order to obtain a debt collection license, you must have the collection agency bond which is there to protect the interest of the creditors. In case the agency collects the money from the debtors and does not pay the money to the creditors then the bond comes in effect. It is one of the conditions for getting the debt collector license.
- As you have obtained the certificate of authority from the secretary of state and the collection agency bond then you are all set to apply for the license. The information required to fill up the form varies from state to state. Still the general information about the company, its physical office and the contact details of the principal contact person are the basic information asked to be filled in almost every state.