Collection Agency

Any business involved in collecting a debt on behalf of a debt owner, or collecting a debt you have purchased from another person ('debt buyer,' see definition), and either you, the debtor, or the debt owner are located in Washington, you must have a Collection Agency endorsement and be licensed in Washington.

Note: The law clarifies that collection agency licensees are prohibited from engaging in the unauthorized practice of law. See Department of Licensing for more information.

You cannot begin business activity until you receive a business license listing the required endorsement.
Washington is a closed-border state. You must have a license before contacting debtors or soliciting clients in Washington.

In-state Collection Agency endorsement

Variable fee

Required 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.

Licensing requirements and additional supporting documents

Business License Application.
Collection Agency, Branch Office, and Out of State Collection Agency Addendum.
Business Financial Statement showing all the following:
- Liabilities and assets of the agency in one of the three 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.
Collection Agency or Out-of-State Collection Agency Surety Bond completed by your insurance company. The insurance must attach their power of attorney form to this form.

State endorsement	Fee
Main location in Washington	$850
Main office re-registration (license expired over 30 days)	$1325
Each additional location (branch) in Washington or out-of-state	$550
Branch office re-registration (license expired over 30 days)	$850

Out-of-state Collection Agency endorsement

Variable fee

Required if your main office and all branch offices are located outside of Washington state, you do not have any clients located in Washington state, and you’re contacting debtors in Washington state who owe money to your out-of-state clients.

Licensing requirements and additional supporting documents

Business License Application.
Collection Agency, Branch Office, and Out of State Collection Agency Addendum.
Business Financial Statement showing all the following:
- Liabilities and assets of the agency in one of the three 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.
Collection Agency or Out-of-State Collection Agency Surety Bond completed by your insurance company. The insurance must attach their power of attorney form to this form.
To get an Out-of-State Collection Agency endorsement, you must do the following:
- Obtain a trust account.
- Maintain an office in Washington state, managed by a Washington resident.
- Make a list of persons with more than 20% interest in the business.