No license to conduct or operate a collection service business in this state shall be issued to any person:

(1) Who is not trustworthy;

Terms Used In Tennessee Code 62-20-107

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Board: means the Tennessee collection service board. See Tennessee Code 62-20-102
  • Client: means any person who retains the services of a collection service and for such services directly provides the fee, commission or other compensation. See Tennessee Code 62-20-102
  • Collection service: includes , but is not limited to:
    (A) Any deputy sheriff, constable or other individual who, in the course of that person's duties, accepts any compensation other than that fixed by statute in connection with the collection of an account. See Tennessee Code 62-20-102
  • Financially responsible: means capable, as demonstrated to the board's satisfaction, of sound financial management and fiscal discretion. See Tennessee Code 62-20-102
  • Fraud: Intentional deception resulting in injury to another.
  • Person: means an individual, firm, corporation, association or other legal entity. See Tennessee Code 62-20-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(2) Who does not have a proven reputation for honesty and fair dealings;
(3) Who is not financially responsible;
(4) Who, in the opinion of the board, is not competent to engage in the collection of the accounts and claims of others;
(5) Who, within the past seven (7) years, has been convicted in any court of fraud or any felony or had judgment entered against the person in any court for failure to account to a client for money or property collected;
(6) Whose license to practice law has been suspended or revoked within the past seven (7) years;
(7) Who, unless a nonresident applicant, does not maintain in this state a regular office in which are kept complete records of collections and claims handled for clients and against debtors residing in this state;
(8) Who, unless a nonresident applicant, does not maintain in this state bank accounts with sufficient funds at all times to disburse amounts due clients; and
(9) Who, within the past seven (7) years, has filed a petition under the federal bankruptcy laws or state insolvency laws or has had a receiver, fiscal agent or similar officer appointed by a court for the person’s business or property.
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