How to Get a License

This license is required for any person or entity performing debt-management services, which is defined as a person or entity acting as an intermediary between an individual and one (1) or more creditors of the individual for the purpose of obtaining concessions, with certain exemptions identified in T.C.A. § 47-18-5502(10) and 47-18-5503.

A licensed debt management provider does not need to obtain a license for each branch location. Instead, only one license is needed for each company, and the company is required to list all of its locations in Tennessee on the application, along with the principal address.

Application & Fees

Complete the “Initial Debt Management Application” online at core.tn.gov. The fee for an initial application is $4,000.

Licensing Requirements

The following information must accompany your online application submission. All forms mentioned can be found on the Forms and Downloads page.

1. A surety bond in the amount of $50,000, with a surety authorized to transact business in Tennessee, or an irrevocable letter of credit. The bond must have a statement that it must allow claims for up to two (2) years after the Agency ceases business.

2. Identification of all trust accounts required by § 47-18-5522 and an irrevocable consent authorizing the administrator to review and examine the trust accounts.

3. Evidence of insurance in the amount of $250,000:

a. Against the risks of dishonesty, fraud, theft, and other misconduct on the part of the applicant or a director, employee or agent of the applicant,

b. Issued by an insurance company authorized to do business in this state and rated at least "A" or equivalent by a nationally recognized rating organization approved by the administrator,

c. With a deductible not exceeding five thousand dollars $5,000,

d. Payable for the benefit of the applicant, this state, and individuals who are residents of this state, as their interests may appear, and

e. Not subject to cancellation by the applicant or the insurer until sixty (60) days after written notice has been given to the administrator.

Note that any insurance policy submitted by a provider as evidence of insurance required by the Act shall include the insurer’s written agreement to provide the Administrator with written notice of termination or reduction of the policy, which shall be sent by certified U.S. mail to the Division.

4. A record consenting to the jurisdiction of this state containing:

a. The name, business address, and other contact information of its registered agent in this state for purposes of service of process, or

b. The appointment of the administrator as agent of the provider for purposes of service of process.

5. If the applicant is exempt from taxation under the Internal Revenue Code, 26 U.S.C. § 501, evidence of that status.

6. The applicant's financial statements, reviewed by a licensed accountant, for each of the two (2) years immediately preceding the application or, if it has not been in operation for the two (2) years preceding the application, for the period of its existence. If the applicant claims nonprofit or tax-exempt status, or if the applicant's business practices involve holding, accessing, or directing the funds of an individual, the financial statements shall be audited by a licensed accountant.

7. Evidence of accreditation by an independent accrediting organization.

8. Evidence that, within twelve (12) months after initial employment, each of the applicant's counselors becomes certified as a certified counselor or certified debt specialist.

9. A description of the three (3) most commonly used educational programs that the applicant provides or intends to provide to individuals who reside in this state and a copy of any materials used or to be used in those programs.

10. A description of the applicant's financial analysis and initial budget plan, including any form or electronic model, used to evaluate the financial condition of individuals.

11. A copy of each form of agreement that the applicant will use with individuals who reside in this state.

12. The schedule of fees and charges that the applicant will use with individuals who reside in this state.

13. At the applicant’s expense, the results of a criminal records check, including fingerprints, conducted within the preceding 12-month period of application filing, covering every officer, employee, or agent authorized to have access to the Company’s trust accounts as defined in the law. 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, initialed, and signed by everyone submitting fingerprints and then attached to the application. If there is a change in officers or those signing on the Trust Account between license renewals, the Fingerprint Acknowledge Form must be submitted to our department, and the criminal records check completed and approved prior to them being granted access to the Trust Account.

a. Visit IdentoGO and select "Schedule a New Appointment" to register. Enter the Service Code 28V1SK ORI # TN920753Z and follow the prompts to complete your application. Alternatively, you can call (855) 226-2937 and speak to a representative.

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 licensee who is currently licensed as a Debt Management Services Provider can continue to operate under that license until it expires. At expiration, if the company meets the criteria to be considered a Debt Resolution Services Provider, they can apply for an initial Debt Resolution Services license.

Application & Fees

Complete the “Initial Debt Resolution Application” online at core.tn.gov. The fee for an initial application is $4,000.
 

Licensing Requirements

The following information must accompany your online application submission. All forms mentioned can be found on the Forms and Downloads page.

1. Proof of compliance with the Business Tax Act, compiled in Title 67, Chapter 4, Part 7.

2. Financial statements for two (2) fiscal years preceding the application.

3. A surety bond in the amount of $50,000, with a surety authorized to transact business in Tennessee.

4. Evidence of accreditation by an independent accrediting organization.

5. A copy of each form of proposed debt resolution plan agreement used with Tennessee consumers and the notice of right to cancel.

6. A schedule of fees, including voluntary donations, for all services to be offered.

7. 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.

a.  Visit IdentoGO and select "Schedule a New Appointment" to register. Enter the Service Code 28V1SK ORI # TN920753Z and follow the prompts to complete your application. Alternatively, you can call (855) 226-2937 and speak to a representative.

This license is required for those engaged in a credit services business, which means any person or entity who, with respect to the extension of credit by others, sells, provides, or performs, or represents that such person can or will sell, provide, or perform any of the following services in return for the payment of money or other valuable consideration:

1. Improving a consumer's credit record, history, or rating,

2. Obtaining an extension of credit for a consumer, or

3. Providing advice or assistance to a consumer with regard to either 1 or 2 above.

Certain exemptions for licensure are noted in T.C.A. 47-18-1002.

Application & Fees

Complete the “Initial Credit Service Business Application” online at core.tn.gov. The fee for an initial application is $50, and the application can be found under the “Debt Management Services” program within the “Apply” screen.
 

Licensing Requirements

The following information must accompany your online application submission. All forms mentioned can be found on the Forms and Downloads page.

1. Sample client agreement to be used between the credit services business and its customers, to include a written information statement containing all of the information required under T.C.A. § 47-18-1005 and § 47-18-1006.

2. Schedule of fees to be assessed to customers of the credit services business applicant, including services covered by the fees and the timing of when they will be assessed.

3. Evidence of a bond in the amount of $100,000, to be maintained for two (2) years following the date on which the credit services business ceases to conduct business in Tennessee. The bond can be made through a deposit of cash, a certificate of deposit, securities, or with a bond issued by a corporate surety acceptable to the Commissioner.