Licensing Requirements for Out-Of-State Collection Agency That Has Arrangement With A Business In Massachusetts
Licensing of collection agencies in Massachusetts is governed by Mass. Gen. Laws chapter 93, § 24 and 209 CMR 18.00. A "consumer debtor" is defined as a natural person, "present or residing in Massachusetts" under 209 CMR 18.03. It is the position of the Division of Banks that a corporation which will be collecting accounts on behalf of another out-of-state collection agency with a branch office in Massachusetts is not a collection agency pursuant to Mass. Gen. Laws chapter 93, § 24 to the extent that it will not be collecting debts from Massachusetts residents. However, should an entity engage in soliciting in Massachusetts the right to collect accounts, bills, or other indebtedness for others, it would require a collection agency license pursuant to Mass. Gen. Laws chapter 93 § 24.