Bill Collection Agency

Bill collection agencies locate and notify customers of delinquent accounts by mail, telephone or personal visit to solicit payment. They receive payment and post amount to a customer’s account; prepare statements to a credit department if a customer fails to respond; initiate repossession proceedings or service disconnection; and keep records of collection and status of accounts. This report looks at what is required to run one’s own bill collection agency only.
License required by 31 states
65th most burdensome licensing requirements
43rd most widely and onerously licensed occupation

Thirty-one states license bill collection agencies. On average, these laws impose $551 in fees and 159 days of experience—the 65th most burdensome requirements of the 102 occupations studied. However, because bill collection agencies are licensed by more than half of states, the occupation ranks as the 43rd most widely and onerously licensed.

License requirements vary widely across states. Idaho is the most burdensome state, requiring three years (1,095 days) of experience in the collections industry as well as $150 in fees. Seven states (Arizona, Colorado, Massachusetts, Minnesota, Nevada, North Carolina and Wisconsin) require over $1,000 in fees. However, Iowa, the least burdensome state, requires only a $10 fee and no experience.

Burden Rank State States Licensed Fees Estimated Calendar Days Lost Education Experience Exams Minimum Grade Minimum Age
1 Idaho 31 $150.00 1,095 - 3 years 0 0 0
2 New Mexico 31 $800.00 730 - 2 years 1 12 18
3 Nevada 31 $1,010.00 730 - 2 years 1 0 21
4 Colorado 31 $1,500.00 730 - 2 years 0 0 0
5 Nebraska 31 $400.00 730 - 2 years 0 0 0
6 Wyoming 31 $600.00 365 - 1 years 1 0 0
7 Illinois 31 $750.00 365 - 1 years 0 0 18
8 Michigan 31 $300.00 182 - 6 months 1 12 18
9 Alaska 31 $175.00 0 - - 0 12 19
10 Washington 31 $850.00 0 - - 0 0 18
11 Arizona 31 $1,500.00 0 - - 0 0 0
12 Massachusetts 31 $1,300.00 0 - - 0 0 0
13 Arkansas 31 $140.00 0 - - 0 0 21
14 Wisconsin 31 $1,200.00 0 - - 0 0 0
15 Indiana 31 $100.00 0 - - 0 0 18
16 Minnesota 31 $1,050.00 0 - - 0 0 0
16 North Carolina 31 $1,050.00 0 - - 0 0 0
18 Tennessee 31 $750.00 0 - - 0 0 0
19 Maryland 31 $700.00 0 - - 0 0 0
19 North Dakota 31 $700.00 0 - - 0 0 0
21 Maine 31 $600.00 0 - - 0 0 0
22 Connecticut 31 $500.00 0 - - 0 0 0
23 Oregon 31 $350.00 0 - - 0 0 0
24 Florida 31 $200.00 0 - - 0 0 0
25 Hawaii 31 $139.00 0 - - 0 0 0
26 Rhode Island 31 $100.00 0 - - 0 0 0
27 Delaware 31 $75.00 0 - - 0 0 0
28 Utah 31 $32.00 0 - - 0 0 0
29 West Virginia 31 $30.00 0 - - 0 0 0
30 Louisiana 31 $25.00 0 - - 0 0 0
31 Iowa 31 $10.00 0 - - 0 0 0