Collection agency
Anoop Deshpande
(Querist) 12 December 2009
This query is : Resolved
Can any body guide me how to float a colelction agency/recovery agency which under takes assignments of recovery of loan from different financial agencies. Is any specific permission, licence is required for that> etc...
Devajyoti Barman
(Expert) 12 December 2009
To start a business of collection agency no permission is needed. It is merely a contract of agency between the Financial Institution(Principal)and the collection agency(Agent). A mere Trade License from the Municipal Corporation and compliance of its Rules will do.
Raj Kumar Makkad
(Expert) 13 December 2009
No specific license is necessary but recently Hon'ble SC has taken a firm view against such agents and has directed the State Govt. to frame such rules/licenses so that the activities of the such agents may be controlled and checked and they may be made accountable to the law of land. Inquire from the authorities of your State (Revenue department) whether such rules has been framed by your State Govt. or not?
If yes then follow those rules otherwise at present no specific rules are in vogue.
