1. Review state laws to determine whether you fall within the definition of a debt collector. While the Fair Debt Collection Practices Act (FDCPA) is the standard-bearer for defining a debt collector, the FDCPA's definition of a debt collector may not apply to state licensing statutes. In fact, state law provides a variety of definitions for debt collectors regarding licensing, so asset buyers must examine each state's definition to consider whether obtaining licensure as a debt collector is appropriate.5. Keep in mind that definitions for state licensing laws and state debt collection practices laws do not always mirror each other. Just because an asset buyer does not qualify as a debt collector under a state's licensing requirements does not necessarily exempt that asset buyer from abiding by the state's general debt collection laws. Asset buyers must examine definitions under both subjects to determine how state licensing and collection practice laws and regulations apply.
campus aca By David Cherner Licensing Tips for Asset Buyers Five suggestions to help asset buyers understand and comply with state laws and regulations C redit and collection industry members are well aware of the diversity in state licensing laws and regulations. Asset buyers in particular have caught the attention of G U I D E S Understanding Asset Buying and Selling CA’s Asset Buyers Division (ABD) has compiled its working knowledge on asset buying state regulators and other licensing authorities in part because they do not always fit the mold of traditional third- A and selling in three publications—Buying Receivables, Due Diligence Guidelines and A Guide for Understanding Purchase and Sale Agreements—which are available for party debt collectors. purchase at http://www.acainternational.org/store. Learn how to successfully purchase Nevertheless, because licensing definitions and exceptions can vary accounts, perform due diligence and draft a purchase and sale agreement from these significantly from state to state, asset invaluable guides. For more information or to apply for ABD membership, e-mail buyers must dedicate sufficient resources email@example.com or call +1(952) 926-6547. to understand these laws and regulations and act accordingly. Asset buyers may want to: 1. Review state laws to determine definition to consider whether business practices and structure may whether you fall within the definition obtaining licensure as a debt collector impact their ability to obtain of a debt collector. While the Fair is appropriate. licensure as a debt collector. Debt Collection Practices Act 2. Determine whether you are exempt 5. Keep in mind that definitions for (FDCPA) is the standard-bearer for from licensure under state law. state licensing laws and state debt defining a debt collector, the Certain states expressly provide that collection practices laws do not FDCPA’s definition of a debt asset buyers are not considered debt always mirror each other. Just collector may not apply to state collectors under
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