The Complete New Mexico Collection Agency License Guide (2023)
Do you want to start a debt collection business in New Mexico?
You have to undergo a rigorous administrative process before you can launch your operations and engage in the process of collecting debt. It involves obtaining a New Mexico collection agency license.
The licensing procedure entails that you meet the state’s requirements for the functioning of collection agencies. This ensures that you can run your business in legal compliance.
In this guide, you can discover the license criteria that you have to satisfy, so that you can set up your agency in New Mexico.
Meet the New Mexico Collection Agency License Requirements
The licensing body that oversees the activities of collection agencies in New Mexico is the Financial Institutions Division at the state Regulation and Licensing Department. It ensures the application of the New Mexico Collection Agencies Regulatory Act.
In order to start your operations in the state, you have to register a business entity with the New Mexico Secretary of State.
You also need registration with the Taxation and Revenue Department (TRD), as well as a fictitious name registration if you want to have a DBA name.
The other documents that you have to obtain for your collection agency license application include:
- Personal information for all control persons
- Collection agency manager information
- Disclosure of states where the applicant operates
- Disclosure of affiliation with other business entities
- Company management information
- Civil, regulatory and criminal disclosures for the company and for the appointed manager
You need to showcase your financial statements, including your balance sheet and income statement. They have to demonstrate that you meet the minimum net worth requirement of $10,000.
Post a Collection Agency Bond
One of the indispensable requirements that you have to satisfy to get licensed is to post a New Mexico Collection Agency Bond. The surety bond functions as a safety instrument that protects the interests of your customers.
The bond amount that you have to obtain should be between $5,000 and $25,000. It should equal the proceeds due to clients for at least two average collections during the previous year. For every additional branch licensed in the state, you will need another $5,000 in bond coverage as well. You have to submit the bond in the official form.
The bonding process entails that you have to pay a premium. It is formulated as a percentage of the required bond amount. The factors that determine it include your personal credit score, business financials, and any fixed and liquid assets that you can showcase. If your finances are stable, you can expect rates in the range of 0.75% to 5%.
Want to see the exact cost of your New Mexico collection agency bond? Fill in the short form below!
Complete the License Application
After you have ensured that you meet all the requirements, you can complete your application form.
You have to submit it together with all of your paperwork via mail to:
Financial Institutions Division
P.O. Box 25101
Santa Fe, NM 87504
License and Registration Fees
You also have to cover the applicable fees with submitting your application. They are as follows:
- $500 application fee for each location
- $100 application fee for the licensed manager
You have to renew your license before June 30th of each year in order to continue your operations.
You can check your license by consulting the New Mexico collection agency search.
Do you need more information about obtaining your New Mexico collection agency license and bonding? Don’t hesitate to get in touch with us at 877.514.5146.
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