Licensing Requirements For Collection Agencies - Q2 1999By the Division of Banks
An entity located in Massachusetts which is not collecting from Massachusetts debtors would not be required to be licensed. Mass. Gen. Laws chapter 93, section 24 requires that a person or entity engaged in the Commonwealth in the business of collecting or receiving payment for others of any account, bill, or other indebtedness, or engaged in soliciting the right to collect or receive payment for another of any such indebtedness shall obtain a license as a collection agency from the Division. The licensing requirement is applicable to the collection of commercial as well as consumer accounts. 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 said section 24.