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Oregon First to Require License to Buy Debt

  • Written by Collection Advisor

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.