(a) Application. All applications for licensure as a collection agency shall be submitted on forms provided by the director, pursuant to Arkansas Code § 17-24-303(a), along with:

1. (1)

   1. (A) The name and address of all officers of the collection agency.
   2. (B) The address shall:

(i) Be an actual street address; and

1. (ii) Include the city, state, and zip or postal code.

   1. (C) A post office box number alone is not acceptable as an address;

2. (2) A surety bond payable to the State Board of Collection Agencies, pursuant to Arkansas Code § 17-24-306, in the amounts as set forth below:

   1. (A) Ten thousand dollars ($10,000) for agencies with up to five (5) collectors;
   2. (B) Twenty thousand dollars ($20,000) for agencies with six (6) to twelve (12) collectors;
   3. (C) Twenty-five thousand dollars ($25,000) for agencies with more than twelve (12) collectors;
3. (3) The required fee of one hundred twenty-five dollars ($125) set forth in Arkansas Code § 17-24-305(a); and
4. (4) Any other information as required by the board.

(b) Agency managers.

1. (1) Each licensee or applicant shall register with the board at least one (1) manager.

2. (2)

   1. (A) The proposed manager or managers of each agency must:

      1. (i) Have an acceptable credit reputation; and
      2. (ii) Maintain said reputation after licensing.
   2. (B) An agency shall provide the necessary information and authorization for the board to obtain a credit report.

   3. (C) A credit record which includes any of the following will be deemed unacceptable:

      1. (i) Judgments, foreclosures, or tax liens within the past five (5) years;
      2. (ii) Accounts charged to profit and loss, unpaid claims for collection or repossessions within the last five (5) years;
      3. (iii) A payment history of accounts paid sixty (60) days late more than three (3) times within the past five (5) years; or
      4. (iv) Other unfavorable economic or financial deficiency that may negatively affect future financial responsibility or invoke public welfare concerns.

3. (3)

   1. (A) Pursuant to Arkansas Code § 17-1-108(c), the credit report requirement, above, may be waived if the agency holds a substantially similar license in another state or territory of the United States.
   2. (B) Another United States state or territory’s license is substantially similar to Arkansas’s if it requires familiarity with the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.

   3. (C) An agency seeking such a waiver shall:

      1. (i) Provide the board with evidence of such licensure in good standing;
      2. (ii) Not have had a license revoked for an act of bad faith or a violation of:

(b) (b) Rule; or

1. (c) (c) Ethics; and

   1. (iii) Not hold a suspended or probationary license in any United States jurisdiction.

      1. (c) Additional locations. Collection agencies operating at more than one (1) office or location must obtain and maintain a separate license and surety bond for each location.
      2. (d) Change of ownership.
2. (1) Licenses issued by the board are not transferable.
3. (2) When fifty percent (50%) or more of the assets, stock, or equity of a collection agency is transferred and/or sold, the agency shall promptly give written notice to the board.

(e) Registration of employees.

1. (1) Licensees shall report to the board the names, aliases, and dates of hire of all employees involved in debt collection activities, including collectors, solicitors, and managers, and remit the twenty-dollar registration fee for each, as set forth in Arkansas Code § 17-24-305(a), within ninety (90) days of such hires.

2. (2)

   1. (A) An agency shall maintain a listing of all pseudonyms (aliases) used by an office or employee of the collection agency in relation to collection activities.
   2. (B) This listing shall be submitted to the board upon application or renewal of its license.
   3. (C) A listing of pseudonyms shall be maintained by the collection agency one (1) year after termination of employment.
3. (3) Licensees shall register their collectors, solicitors, and managers (and their aliases) for each licensing period (July 1 – June 30).

(f) Change of address.

1. (1) It is the responsibility of each licensee to notify the board in a timely fashion of any changes to its physical and/or mailing address.
2. (2) All surety bonds must bear the agency’s current physical address.