Is the Debt Collector Even Licensed to Sue You?

A number of states require debt collectors and debt buyers to hold a license to collect or sue. When a plaintiff isn't properly licensed where required, it may lack the capacity to bring the suit — a defense many consumers never raise.

How to check

• Search your state's licensing or financial regulator database for the plaintiff's name
• Confirm the license was active on the date the suit was filed
• Check whether your state licenses debt buyers specifically, not just agencies

Raising it

If the plaintiff appears unlicensed where a license is required, raise it in your answer and in discovery. Licensing rules vary widely, so confirm your state's specific requirement.