The State of Oregon has become the first state to adopt a stand-alone license requirement for debt buyers.
A debt buyer who also performs third-party collections will be required to maintain both a debt buyer and collection agency license in Oregon. There are several application requirements including:
• Business plan
• Organization chart
•E & O Insurance
• $450 Application Fee
• $15 Credit Report for each Control Persons
• $36.25 per person FBI criminal background check for officers, directors and owners of over 10%
The Receivables Management Association reports that Oregon has shown a desire to address their concerns regarding program fees, safe harbor protections for early applicants, and clarity regarding when a company must maintain both a debt buyer and collection agency license.