Collection Agency License Requirements

How does Florida regulate and authorize licenses?   

A “license” to regulate professions and occupations means any permit, registration, certificate, or license issued in Florida. An occupational license is a privilege accorded by the state or its subdivisions to conduct a business at a particular location and is not a property right protected by substantive due process; the denial of such license does not prevent the business owner from pursuing a lawful occupation but merely stops the business from operating at a particular location. Ammons v. Okeechobee County, 710 So. 2d 641 (Fla. 4th DCA 1998).  

On July 1, 2021, the Florida Legislature passed Section 163.211 into law, which prevents any county, municipality, or other political subdivision of Florida from implementing additional licensing requirements for most occupations. Therefore, a prospective applicant only needs to satisfy state statutory requirements. 

Need help receiving, renewing, or defending your license? Schedule your consultation today with a top administrative law and licensing attorney.  

Which laws and regulations apply to collection agency licenses in Florida?  

The Florida Office of Financial Regulation is the state entity responsible for regulating collection agency licenses. Specifically, the regulation of collection agencies falls under the purview of the Division of Consumer Finance. Two key statutes govern the licensing and operation of collection agencies in Florida: the Florida Consumer Collection Practices Act (FCCPA) and the Florida Administrative Code Chapter 69V-160. 

The FCCPA sets forth the general licensing requirements, prohibited practices, and enforcement provisions for collection agencies operating in Florida. The Florida Administrative Code further details the rules and regulations surrounding the application process, examination and investigation requirements, fees, and maintenance of records for collection agencies. 

What are the application and retention requirements for collection agency licenses in Florida? 

Application Requirements:

Before applying for a collection agency license, applicants must familiarize themselves with the application criteria specified in the Florida Statutes and Florida Administrative Code. Florida Statutes §559.555 outlines the application requirements, including the following: 

• A completed application form with accurate and verifiable information. 
• The application fee and initial license fee. 
• A surety bond or letter of credit for $50,000. 
• Evidence of business registration with the Florida Department of State. 
• Designation of a qualified individual or manager who meets the experience and qualification requirements. 

Retention Requirements:

To maintain their collection agency license, licensees must adhere to the following: 

• Submitting an annual license renewal application and fee. 
• Maintaining the required surety bond or letter of credit. 
• Complying with the Florida Consumer Collection Practices Act’s provisions, such as avoiding prohibited practices and respecting debtor rights. 
• Ensuring that the designated qualified individual or manager continues to meet the experience and qualification requirements. 
• Keeping accurate and up-to-date records and making them available to the Florida Office of Financial Regulation upon request. 

To determine whether you meet the requirements for a collection agency license, please contact our office to set up your initial consultation. 

Can the OFR’s license decision be appealed?  

Yes, an adverse license decision made by the OFR is appealable. The authority for appealing such decisions comes from the Florida Administrative Procedure Act (APA), Chapter 120 of the Florida Statutes. The APA establishes the framework for challenging agency actions, such as licensing decisions, through administrative hearings and judicial review. The right to appeal derives from Florida Statutes §120.569 and §120.57.  

If an applicant or licensee receives an adverse decision from the OFR, they may request an administrative hearing to challenge it. The request for a hearing must be submitted within the timeframe specified in the agency’s notice, which is generally 15 days from the date of the notice, as provided in Section 120.569(2)(a), Florida Statutes. 

The administrative hearing process commences with submitting a petition for a hearing to the agency. The petition must comply with the requirements outlined in Rule 28-106.201, Florida Administrative Code. If the petitioner qualifies for an administrative hearing, the case is referred to the Division of Administrative Hearings (DOAH) and assigned to an administrative law judge (ALJ). 

The ALJ conducts the hearing, like a trial, with both parties presenting evidence and testimony. After the hearing, the ALJ issues a recommended order, which includes findings of fact, conclusions of law, and a recommendation for a final decision. The OFR then reviews the recommended order and issues a final order, either adopting, modifying, or rejecting the ALJ’s recommendations. 

Suppose the petitioner is unsatisfied with the OFR’s final order. In that case, they can seek judicial review by filing a notice of appeal with the appropriate District Court of Appeal, as provided in Section 120.68, Florida Statutes. The court reviews the case to determine if the agency’s decision follows from competent, substantial evidence and complies with the law. 

Have more questions about a professional licensing-related situation?  

Crucially, this overview of collection agency licenses does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances. 

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively. 

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant. 

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.