Debt adjuster license
So you are in the process of setting up your own debt adjuster license. Do you need a license to open your doors? This is the question you need to ask when you interview the back-end DSCs that you will be affiliating with to start your business. In general, these companies will tell you that you will not need your own license so long as you work as an affiliate of these companies.
So what kinds of licenses are available to persons who want to start a DSC from scratch? Answering this question for all 50 states in the USA would take several pages and is beyond the scope of this quick guide. But let's take a look at the Uniform Debt Management Services Act which has been enacted in the following six states: Colorado, Delaware, Nevada, Rhode Island, Tennessee and Vermont. The Nevada version of this law was enacted in May of 2009. The Nevada UDMSA requires companies engaged in debt settlement ("DS") to register with the Commissioner of Financial Institutions by filing an application. Along with that application, the applicant must also provide proof of receiving a $50,000 surety bond and a $250,000 fidelity bond for your company. The licensing requirement under the Nevada UDMSA basically says that you cannot offer debt management services (debt management services includes the offering of DS services) to an individual who resides in Nevada without first registering with the Nevada Commissioner of Financial Institutions. This new licensing requirement goes into full effect in July 2010. Note that in other states, other laws will apply. In fact, you may need other licenses including registration under the credit services organization laws and other state laws that govern debt settlement or debt adjusting. Ask each of the back-end DSCs that you are considering working with about what type of licensing you might need, if any. You might also ask these DSCs for a list of the licenses that they have obtained to operate in the various states they are working in. Licensing in just one of the issues you need to consider as you jump into this business. Continue to read more about how to get started in the DS business. The more you know the better off you will be. |