Debt Management Provider Licensing

A Debt Management Provider license is required by any person or entity, that for compensation is offering or providing to      offer the planning and management of the financial affairs of a debtor and the receipt of money from the debtor for the distribution to a creditor in payment of the debtor’s obligation.

Licensing Information

Additional information regarding the prerequisites and requirements of a Debt Management Provider can be found in the Debt Management Services Act (T.C.A 47-18-5501).

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 Management Provider:

  1. Completed Application, Acknowledgement Forms and submission of fees
  2. Financial statements audited by a CPA for two years preceding the application
  3. A surety bond in the amount of $50,000, with a surety authorized to transact business in Tennessee, or an irrevocable letter of credit
  4. Evidence of insurance in the amount of $250,000
  5. Evidence of accreditation by an independent accrediting organization
  6. A description of the three most common educational programs provided and the educational materials
  7. Documentation of certification by a bona fide third-party certification provider for each certified counselor or a statement that such documentation will be provided within 12 months of employment
  8. A description of the financial analysis and initial budget plan, including any form or electronic model, used to evaluate the financial condition of individuals
  9. A copy of each form of proposed debt management plan agreement used with Tennessee consumers and the notice of right to cancel
  10. A schedule of fees (including voluntary donations) for all services to be offered
  11. Irrevocable consent to review all trust accounts
  12. The results of a criminal records check, including fingerprints, conducted within the preceding 12-month period of application filing covering every officer, and employee or agent authorized to have access to 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)

Fees

Initial Application: $4,000.00

Renewal: $4,000.00

License Renewal

Debt Management Provider 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 and no less than 30 days before expiration.

Licenses expired more than sixty (60) days must reapply.

Change of Address

Debt Management Companies and Credit Services Businesses should always ensure the office has a current email and address on file for renewal notices and other communication needs. These changes may be sent to Debt.management@tn.gov.

Debt Management Services Accreditation Providers

The Debt Management Services Act requires a debt management services provider to be accredited by an independent accrediting organization.

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

Debt Management Services Credit Counselors Certification Providers

The Debt Management Services Act requires credit counselors, supervisors or managers with direct supervisory duties of credit counselors who perform the consumer education program to be certified by an independent certification organization. The following certification organizations are approved to meet the certification requirement:

  • Arbor Investments in Education www.Arbored.com
  • Association for Financial Counseling and Planning Education (AFCPE) www.afcpe.org
  • Center for Financial Certifications (CPFC) now known as FinCert! A program offered by the Institute for Financial Literacy, Inc. www.fincert.org
  • International Association of Professional Debt Arbitrators (IADPA) www.iapda.org
  • National Association of Certified Credit Counselor (NACCC) www.naccc.us
  • National Foundation for Credit Counseling (NFCC) www.nfcc.org
  • Organization for Consumer Credit Advocacy and Mediation OCCAM LLC www.occamalliance.org
  • Partnership for Financial Education www.financialed.org
  • Debt Resolution Professionals Registry, LLC www.drpr.org