Judgment Recovery: Do
You Need A License To Collect Judgments?
One of the most common questions
I'm asked regarding judgment recovery is "Do you need a
license to collect judgments?" My answer is "It depends."
Doesn't it always?
Here's the rule of thumb. If you
purchase the judgment you then have the same legal rights as
the original judgment holder. Therefore no license would be
required. However, if you do not purchase the judgment
then you'd be operating as a 3rd party collector and a
collection agency license would be necessary to
collect the judgment.
The rules vary from state to
state. Some states do not recognize assignments at all,
claiming this to be The Unauthorized Practice Of Law.
All the best,
Lance Shapiro
Legal Revenue Service
Legal Revenue Service,