Collection Agency Licensing Requirements

The State of Iowa does not require the licensing of collection agencies or collectors. However, it requires the registration of debt collectors with the Iowa Attorney General and payment of an annual fee of $10.00 if the debt collection activities generate an amount in excess of $25,000.00 per year. The $25,000.00 requirement is based on the aggregate amount of debt collected from all sources and is not based just on amounts collected from Iowa consumer accounts. Iowa's Consumer Credit Code (ICCC) provides broad coverage of debt collection practices, and imposes severe penalties for any violation. (Iowa Code Chapter 537.)

A note of caution is that Iowa requires private investigators to obtain license and bond. Attempts to obtain information on the "habits, conduct, movements, whereabouts, associations, transactions, reputations, or character of a person" are within the definition of investigator activities. (Iowa Code Section 80A.1(6).) Thus, activities involving "skip-tracing" may be deemed investigative and may subject a debt collector to such licensing and bond requirements. A debt collection agency or collector should consult legal counsel prior to commencing any collection activities in the State of Iowa. Also See LAWDOG  Iowa Debt Collection Practices, linked from the previous menu, or here.

The office of the Hon. Tom Miller, Attorney General of Iowa, maintains an excellent internet site, which includes a section entitled "Iowa Consumer Protection Laws Maintained by the Iowa Attorney General", linked here. A great place to start.

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