Debt Resolution Services Provider Licensing

A Debt Resolution Services provider is required to be licensed in this state for any program or service represented, directly or by implication, to negotiate, settle, or in any way alter the terms of payment or other terms of the debt between a consumer and one (1) or more unsecured creditors. Debt Resolution Service providers may request or require that
consumers establish and place funds into a dedicated account administered by a dedicated account services provider, as opposed to placing funds in a trust account owned and controlled by the licensee.

Already licensed as a Debt Management Services Provider?

Any licensees who are currently licensed as a Debt Management Services Provider can continue to operate under that license until it expires. A company that meets the criteria to be considered a Debt Resolution Services Provider should apply for an initial Debt Resolution Services license rather than renewing the Debt Management Services Provider license.

Licensing Information

Additional information regarding the prerequisites and requirements of a Debt Resolution Services provider can be found in the Debt Resolution Services Act (T.C.A. § 47-18-5801 et seq.).

Initial Application Requirements

The following items are required to be provided by the applicant as part of the application for initial licensure as a Debt Resolution Services Provider:

  • Completed application and submission of fees
  • Proof of compliance with the Business Tax Act, compiled in title 67, chapter 4,part 7
  • Financial statements for two (2) fiscal years preceding the application
  • A surety bond in the amount of $50,000, with a surety authorized to transact business in Tennessee
  • Evidence of accreditation by an independent accrediting organization
  • A copy of each form of proposed debt resolution plan agreement used with Tennessee consumers and the notice of right to cancel
  • A schedule of fees (including voluntary donations) for all services to be offered
  • The results of a criminal records check, including fingerprints, conducted within the preceding 12-month period of application filing covering each of the applicant’s executive officers. The fingerprints and IdentoGo registration form are to be submitted directly to IdentoGo, not to the State of Tennessee. A Fingerprint Acknowledgement Form must be completed and signed by each individual submitting fingerprints and then attached to the application. Instructions for obtaining a background check from Identogo can be found here.

Fees

Initial Application: $4,000

Renewal: $4,000

License Renewal

Debt Resolution Services Licenses expire two years from the issuance date of the license. Renewal applications must be filed with the Division prior to the license’s expiration date. Renewal applications should be filed no earlier than 60 days prior to license’s expiration date.

Change of Address

Debt Resolution Service Providers should ensure that the Division of Regulatory Boards has the most current email and physical mailing address on file for communications. All applicants and licensees shall notify the Division within thirty (30) days of any change of address. Updates to a licensee’s contact information can be sent to reg.boards@tn.gov.

Debt Resolution Services Accreditation Providers

The Debt Resolution Services Act requires a debt resolution services provider to be accredited by an independent accrediting organization

The following programs and organizations are approved to meet the accreditation requirement:

If you are interested in applying to become an approved accreditation and/or counselor certification provider in Tennessee, please complete this application and submit it to reg.boards@tn.gov for consideration.