Collection Agencies, Managers and Repossesors: FAQs
Q: What is a collection agency?
A collection agency means any person engaging in business for the purpose of collecting or attempting to collect, directly or indirectly, debts owed or due or asserted to be owed or due another, where such person is so engaged by two or more creditors. The term also includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts.
Q: As a collection agency, am I required to have a surety bond?
Yes you are required to obtain a surety bond in the amount of $5,000.00.
Q: What qualifications does a management applicant need to have?
A management applicant needs to be a US citizen, reached the age of majority, not have been convicted of a felony or crime involving moral turpitude, be a high school graduate or equivalent high school education, pass the examination, pay the examination fee, have been actively and continuously engaged or employed in the collection of accounts receivable for at least two of the five years next preceding the filing of the application and possess good credit.
Q: What rules and laws do collection agencies have to abide by?
Collection agencies in New Mexico fall under the New Mexico Collection Agencies Regulatory Act as well as the Fair Debt Collection Practices Act.