Collection Agency License Requirements For Companies Which Collect Affiliates' Debts
A company which collects debts on behalf of an affiliated company would be deemed to be collecting debts on behalf of another and thus be required to obtain a collection agency license under Mass. Gen. Laws chapter 93 § 24. There is no exemption in the statute for affiliated companies with common ownership. Failure to comply with the statute may result in a suit brought by the Attorney General against the person or entity subject to monetary penalties or fines for each statutory violation. A consumer debtor would also have a right of action against an unlicensed entity which should be licensed for unfair and deceptive practices pursuant to Mass. Gen. Laws chapter 93A.