Debt Collections

The Minnesota Department of Commerce licenses collection agencies and debt collectors. Our efforts provide regulatory oversight of the industry to help protect consumers and promote a competitive marketplace.

Notice and FAQ for Debt Buyers

Under recent changes to Minnesota law, debt buyers must now be licensed in Minnesota. The license required is a collection agency license. Please see this FAQ for a description of requirements and procedures. The associated session law can be viewed here.

Affiliated Company Form

Use this form to notify the Minnesota Department of Commerce that your licensed collection agency has one or more affiliated companies that meet this entire definition: “Affiliated Company means a company that: (1) directly or indirectly controls, is controlled by, or is under common control with another company or companies; (2) has the same executive management team or owner that exerts control over the business operations of the company; (3) maintains a uniform network of corporate and compliance policies and procedures; and (4) does not engage in active collection of debts.

How to Register as a Collection Agency
1. Go to PulsePortal, select "Minnesota Department of Commerce" as the program, and "Debt" as the board. Then click on "Submit License Application" and follow the instructions from there
2. Fees are paid via the online portal: The initial registration fee is $1,000 state fee
  - Each branch of a Collection Agency must obtain a separate license. The fee for a branch location is $500.00
3. The following must be uploaded under Required Items at the end of the application or emailed to licensing.commerce@state.mn.us
  - The original Minnesota Surety Bond and Power of Attorney for each licensed place of business.
    - Collection Bond Form - Corp. or LLC (.pdf)
    - Collection Bond Form - Individual (.pdf)
    - Collection Bond Form - Partnership (.pdf)
  - Copy of business name approval that’s been filed with the MN Secretary of State
  - A Certificate of Authority to Transact Business that’s been filed with the Minnesota Secretary of State.
    - This is not the same as a Certificate of Good Standing.
  - If the business name of the collection agency is different from the legal name of the business a copy of the Certificate of Assumed Name that’s been filed with the MN Secretary of State.
  - Disclosure of Owners Partners and Officers form and a BCA form for each person listed on the disclosure form.
    - MN Department of Commerce Disclosure of Owners, Officers, Partners Form (.pdf)
    - Only names of individuals should be listed on this form.
    - The BCA form is required for each individual listed on this form.
  - Financial Statement form.
    - MN Department of Commerce Financial Statement Form (.pdf)
    - This information can be no more than six months old.
    - Bank name and account numbers are required.
    - A trust account is required unless you are a debt buyer and have indicated that you are a debt buyer on the application
4. After the application is approved you will need to print the license on www.pulseportal.com. A State ID and PIN number will be printed on page 2 of the license. That number must be used to set up an account on PulsePortal. Once the account is set up for your agency, you will be able to submit individual debt collector registration applications and perform other functions on the system.
Waiver of Licensing and Registration

The commissioner of commerce may, by order, waive the licensing and registration requirements of this chapter for a nonresident collection agency and the nonresident collection agency's affiliated collectors if:
1. a written reciprocal licensing agreement is in effect between the commissioner and the licensing officials of the nonresident collection agency's home state; and
2. the nonresident collection agency is licensed in good standing in the nonresident collection agency's home state.
Debt Collector Registration
Screening Requirements

Each collection agency must establish procedures to screen each of its debt collectors prior to submitting the renewal payment. The screening process for the renewal of a debt collector registration must include a national criminal history record search, and a county criminal history search for all counties where the individual has resided for the immediate preceding year. Screening for renewal of individual collector registrations must take place no more than 60 days before the registration expiration or renewal date. A renewal screening is not required if an individual collector has been subjected to an initial background screening within 12 months of the first registration renewal date. A renewal screening is required for all subsequent annual registration renewals.

Details on how to apply for individual Debt Collector registration.

A collection agency/branch representative must go to Pulse Portal, log into the agency's user account, click on "Minnesota Department of Commerce" for the program and "Debt" for the board, and click on "Submit License Application" and "Begin an Individual License Application."
- Fees are paid via PULSE Portal. The initial registration fee is $10.00. The online system vendor also charges a $9.95 application fee and a credit card processing fee.
- After you submit an individual debt collector registration application, you should do an application status inquiry on Pulse Portal to see when the registration is issued.
- The debt collector must be employed by a collection agency that holds a Minnesota license for the physical location where the debt collector conducts business.
Debt Collector License Renewal
The renewal window for debt collections renewals is open from early May to June 30 at 4:30 PM Central time.

Renewing debt collector registrations and collection agency licenses is done through the Collection Agency and Debt Collector Mass License Renewals service described below. The renewal period ends June 30 at 4:30 PM CDT.

If you have not already done so, create an account with Vertafore. To create an account, go to Pulse Portal. From the "Choose a state to begin" drop-down menu, select "Minnesota." From the "Choose a board to continue" drop-down menu, select "Debt." Under "Licensing Services," click on "Register for an Account." Enter your State ID and PIN and follow the instructions on the screen that appears. If you don't remember your State ID and PIN, click on “Home.” From the "Choose a state to begin" drop-down menu, select "Minnesota." From the "Choose a board to continue" drop-down menu, select “Debt.” Under “Print Licenses/Documents,” click on “Print Your License,” go through the process, and retrieve your state ID and PIN from page 2.

Go to Pulse Portal.

Do not use your browser's "Back" button at any point in the process, or you will lose all of the data that you have entered to that point and will need to start over from the beginning.
1. From the "Choose a state to begin" drop-down menu, select "Minnesota."
2. From the "Choose a board to continue" drop-down menu, select "Debt."
3. Under "License Renewals," click on "Mass License Renewals." This will call up the "Login" screen.
4. Enter your User Name and Password and click the "Login" button.
5. Next to "License Type," click the "Collection Agency" radio button, then click the "Submit" button.
6. You will be presented with a list of all the collectors associated with your company whose registrations are up for renewal. Click the checkbox next to each collector whose registration you would like to renew, then click the "Submit" button.
7. The "Attestation" screen will appear. Read the instructions carefully and note the following:
  - If you have changed bonding companies or have changes to your existing surety bond, email a copy of the confirmation page with the completed original Minnesota surety bond or original surety bond rider and power of attorney form to licensing.commerce@state.mn.us
  - The surety must notify the Commissioner within 10 days of any notification, change, or claim on the bond.
  - The Department of Commerce recommends revisiting the “Mass License Renewals” service regularly throughout the renewal period to ensure that you have completed all of your renewals. The renewal period ends June 30 at 4:30 PM CDT.
8. Click the “I Agree” button.
9. The list of renewed registrations will appear. Click the "Submit" button.
10. The Credit Card Information screen will appear. Enter all requested information. (Note: If your mailing address is in the United States, you do not need to enter anything in the "Country" field.) Click the "Continue" button.
11. Verify your information on the next screen. If something needs to be added or corrected, click the "Back" button (the one on the page, not the one for your browser). If everything is correct, click the "Submit Credit Card Info" button.
12. The confirmation page will appear. Please write down the Confirmation ID number and print the page for your records. The Confirmation ID number can be used to check the status of your renewal.
Additional Information

Renewal Screening Requirements

Each collection agency must establish procedures to screen each of its debt collectors prior to submitting the renewal payment. The screening process for the renewal of a debt collector registration must include a national criminal history record search, and a county criminal history search for all counties where the individual has resided for the immediate preceding year. Screening for renewal of individual collector registrations must take place no more than 60 days before the registration expiration or renewal date. A renewal screening is not required if an individual collector has been subjected to an initial background screening within 12 months of the first registration renewal date. A renewal screening is required for all subsequent annual registration renewals.

If this screening process reveals an incident that was not previously reported to the Minnesota Department of Commerce, please email a copy of the legal documents to the Department at licensing.commerce@state.mn.us.
License Updates
Individual name change

To change your name, you must complete the Notification of Name Change form (.pdf) and attach the applicable legal documentation. Email the form and the legal documentation to licensing.commerce@state.mn.us.
- Court order
- Marriage certificate
- Divorce decree
- A driver's license or Social Security card will not fulfill this requirement
Business entity name change

Within 10 days AFTER the change has occurred, please send a signed request from an owner requesting the change, a new bond or bond rider showing the name change, and the amended Minnesota Secretary of State filings to licensing.commerce@state.mn.us.
- DO NOT send the form before the change has occurred.
- DO NOT send an intent to change.
Individual address change

Please complete the address change on www.pulseportal.com.

Business Entity address change

Within 10 days AFTER the change has occurred, please send a signed request from and owner requesting the change and a new bond or bond rider showing the address change to licensing.commerce@state.mn.us.
- DO NOT send the form before the change has occurred.
- DO NOT send an intent to change.
Update owner, partner, or officer

Within 10 days AFTER the change has occurred, please submit this form (.pdf) to licensing.commerce@state.mn.us.
- DO NOT send the form before the change has occurred.
- DO NOT send an intent to change.

Debt Collections

Debt Collections

Questions?

Notice and FAQ for Debt Buyers

Affiliated Company Form