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Bill Collector Agency

License to Work: A National Study of Burdens from Occupational Licensing

License to Work: A National Study of Burdens from Occupational Licensing

Highlights

License required in 30 states
78th most burdensome licensing requirements
43rd most heavily regulated occupation

(Last updated April 24, 2012)

Definition

Bill collection agencies, also known as account representatives or debt collectors, locate and notify customers of delinquent accounts by mail, telephone or personal visit to solicit payment. Their duties include receiving payment and posting amount to a customer's account; preparing statements to a credit department if a customer fails to respond; initiating repossession proceedings or service disconnection; and keeping records of collection and status of accounts.

Summary

Charging an average fee of $471, 30 states require a license to operate a bill collection agency -- the 43rd most widely and onerously licensed occupation of the 102 studied. Nebraska is the only state that requires bill collectors to have any experience, requiring two years, and Michigan is the only state with an exam. Fees range from $10 in Iowa to $1,524 in Arizona. States also require such things as a moral character certificate of good standing, a personal history statement and financial statements.

(Last updated May 2, 2012)

State Licensing Requirements

Burden RankStateFeesEducation/Experience (Days)ExamsMinimum GradeMinimum Age
1 Nebraska 400 730 0 0 0
2 Michigan 273 0 1 12 18
3 Alaska 250 0 0 12 19
4 Arizona 1524 0 0 0 0
5 Louisiana 400 0 0 0 19
6 Arkansas 140 0 0 0 21
7 Colorado 1200 0 0 0 0
8 Wisconsin 1015 0 0 0 0
9 North Carolina 1000 0 0 0 0
10 Connecticut 900 0 0 0 0
11 Illinois 750 0 0 0 0
11 Tennessee 750 0 0 0 0
13 North Dakota 700 0 0 0 0
14 Nevada 675 0 0 0 0
15 Washington 665 0 0 0 0
16 New Mexico 600 0 0 0 0
17 Wyoming 500 0 0 0 0
18 Maryland 400 0 0 0 0
18 Maine 400 0 0 0 0
20 Oregon 350 0 0 0 0
21 Massachusetts 300 0 0 0 0
22 Rhode Island 200 0 0 0 0
22 Florida 200 0 0 0 0
24 Hawaii 160 0 0 0 0
25 Idaho 150 0 0 0 0
26 Indiana 100 0 0 0 0
27 Delaware 75 0 0 0 0
28 Utah 32 0 0 0 0
29 Minnesota 20 0 0 0 0
30 Iowa 10 0 0 0 0

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