Licensing Tips for Asset Buyers by ProQuest


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									          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 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
                                      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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