Debt Buyer

A debt buyer is an entity or company that acquires debt portfolios from original creditors or other debt owners. The licensing requirements for debt buyers can vary depending on the jurisdiction and the specific regulations in place. While some jurisdictions may require debt purchasers to obtain a debt collection license or registration, others may not have specific licensing requirements for debt buyers. Instead, they may be subject to general business licensing or registration requirements.

Debt buyers can purchase various types debt, such as credit cards, medical bills, mortgages, and utilities. Debt buyers may try to collect payments themselves or through collection agencies. Debt buyers may be classified as “active”—those who attempt to collect on the accounts they purchase, or “passive”—those who invest in the debt and then outsource the collection activities to a separate collection agency or collection law firm.

 

Click each state for more detailed information.

 

The state displayed in green are the states that require a license in order to operate as a debt buyer in that state.