Collection Agency Licensing Requirements:

The Tennessee Collection Service Act prescribes the licensing requirements for the operation of a collection agency in the State of  Tennessee.  (62-20-101, et seq.).

Any person who, directly or indirectly, for a fee, commission, or other compensation, offers to a client or prospective client the service of collecting, or purchasing for collection, accounts, bills, notes or other indebtedness due such client for various debtors are subject to the licensing requirements under the Act.  (62-20-102(3).)   However, collection personnel of any court, attorneys at law, or any employees of a creditor are exempt from the licensing requirements.  (62-20-103(a).)  Any person who wishes to conduct collection services must submit an application for a license to the Tennessee Collection Service Board for approval and post a bond in an amount between $15,000 and $25,000 depending on the number of employees. (62-20-106.)  Each location of the collection business must be registered and operated by a location manager. (62-20-105, 62-20-108.)   A collection service must also keep and retain for a period of 3 years accurate individual records of collection, issue collection receipts upon request, maintain a separate fiduciary or trust bank account and maintain records and books reflecting the true condition of bank accounts at the end of each calendar month.   (62-20-114.)

The Rules of The Tennessee Collection Service Board (Chapters 0320-1 to 0320-4) set forth the qualifications, examinations, and fees requirements.  Detailed information on licensing requirements may be obtained from: State of Tennessee Department of Commerce and Insurance Collection Service Board 500 James Robertson Parkway Nashville, Tennessee 37243 Tel:  615-741-1741

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