How to get your license: Collection agencies

Types of licenses

• Apply for a Collection Agency License if:
  • Your main office is in Washington State.
  • or
  • Your main office is outside of Washington State and you have, or plan to have, clients located in Washington State.
• Apply for an Out-of-State Collection Agency License if:
  • Your main office and all branch offices are located outside of Washington State.
  • You don’t have any clients located in Washington State.
  • and
  • You’re contacting debtors in Washington State who owe money to your out-of-state clients.

Requirements

• To get a Collection Agency License, you must:
  • Get a trust account.
  • Maintain an office in Washington State, managed by a Washington resident.
• You may not begin business activity until you receive the required license.
• Washington is a closed-border state. You must have a license before contacting debtors or soliciting clients in Washington.

How to apply

To get a Collection Agency License or Out-of-State Collection Agency License:

1. Complete all of the following:
   • A Business License Application
   • A Business License Application Supplement for Collection Agency, Branch Office, or Out-of-state Office for each business location.
   • A Personal/Corporate Financial Statement showing all of the following:
     • Liabilities and assets of the agency in 1 of the 3 months prior to application. For example, if you apply in May, we will accept a financial statement for either February, March, or April.
     • $7,500 or more in cash or its equivalent. $5,000 of the cash must be deposited in a bank account used to operate the business.
     • Equity, or net worth, of $7,500 or more.
   • A Collection Agency or Out-of-State Collection Agency Surety Bond completed by your insurance company. The insurance company must attach their power of attorney form to this form.
   • A list of persons with more than 20% interest in the business.
   • If applying for more than 1 location, a Location Addendum for each additional location.
2. Enclose the appropriate fee (check or money order payable to the Department of Revenue).
3. Mail your application with all supporting documents and fees to:
   
   State of Washington
   Business Licensing Service
   PO Box 9034
   Olympia, WA 98507-9034

Note: Please be sure to notify our office in writing of any address changes.