FAQs Regarding A Consumer Credit Licence

A consumer credit license is required of businesses that conduct a consumer credit counseling business. This requirement is typically handed down by the states in which the consumer credit counseling business is doing business.

Frequently asked questions (FAQs) concerning consumer credit counseling businesses and their licensing are as follows:

What is a Consumer Credit Counseling Business?

A consumer credit counseling business is one that works with consumers to repair their credit. Also known as credit repair services, their primary goal is to work with consumers to help reduce their outstanding debts. Consumer counseling businesses work as a conduit between the debtor and their creditors to negotiate better rates or lower payments.

What Services Do Consumer Credit Counseling Businesses Provide?

The typical service provided by a consumer credit counseling business is debt reconciliation. This is the mediation that takes place between the creditor and debtor to lower their payments and resolve an outstanding debt.

Who Regulates Consumer Credit Counseling Businesses?

Consumer credit counseling businesses are regulated under the laws of the states in which they operate. Each state has different requirements for how a consumer credit counseling business may conduct business within its jurisdiction. The laws governing a consumer counseling business in a state are found in the respective state’s statutes.

How is a Consumer Credit Counseling License Granted?

A consumer credit counseling license is granted by the state. Usually this is handled by some business licensure agency or department within the office of the state secretary or financial institutions department. In some states, a consumer credit counseling business is regulated like banks and other financial institutions are regulated.

How Long Is a Consumer Credit Counseling License Good For?

A consumer credit counseling is as good as the licensing period for the respective state. Some states may grant a license that must be renewed on an annual or semi-annual basis. Other states may issue licenses that are good as long as the credit counseling business remains in good standing with the state.

How Do I Obtain a Consumer Credit License?

Obtaining a consumer credit license requires an application and any applicable fees be paid to the appropriate state department. The other aspects of the process regarding licensing are handled by the state and are communicated in the application packet.

Who Do I Contact For Information About Consumer Credit Licenses?

For additional information concerning consumer credit licenses, a business should contact the state agency in which they are doing business in. This agency can provide the business with information concerning licensing requirements, qualifications, application fees and other information.


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