Nashville Bankruptcy Attorneys Clark & Washington Explain Why Debt Buyers Must Have a License

Clark & Washington's Nashville bankruptcy experts discuss why your debt buyer must be licensed by the state of Tennessee.

NASHVILLE, TN, March 06, 2015 /24-7PressRelease/ -- The Nashville bankruptcy attorneys at Clark & Washington wish to explain why debt buyers are required to have a license. Failure of a debt buyer to obtain a license may subject the debt buyer to serious liability for failure to comply with the mandated debt collection regulations set forth in the Fair Debt Collection Practices Act (FDCPA).

The Tennessee Collection Service Board was created as a result of the Tennessee FDCPA to promulgate the rules related to the general conduct of all collection service business that are registered in the state of Tennessee. It is the opinion of this board that any entity that purchases judgments or other debts will be classified as a collection service if they attempt in any way to collect on the purchased debt or judgment after purchase. Being classified as a collection service requires that the entity become licensed to collect debts.

Certain entities are exempt from obtain a license to be a debt collector under Tennessee law. Attorneys at law, individuals handling claims or accounts under the order of any court, or people who are engaged in the collection of any debt that is incurred in the normal course of business are not required to obtain licenses. There seems to be a loophole, however, in that there are some entities that can purchase a debt and then assign the collection of the debt to a collection agency or a licensed attorney and avoid the license requirement. This can insulate the entity from FDCPA violations directly.

If you are ever dealing with an entity that you feel is violating FDPCA regulations, you need to contact a Nashville bankruptcy lawyer immediately. For more information or to schedule a free consultation with one of Clark & Washington's Nashville bankruptcy experts, visit http://www.bankruptcyattorneynashville.com

About Clark & Washington:

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.bankruptcyattorneynashville.com.

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