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Opinions

Parts of the bureaucracy (usually the Bar Association) in a handful of states have expressed the opinion that practitioners of judicial judgment recovery should either purchase judgments outright with no continuing obligation, or be licensed as a collection agency. National Judgment Network has members successfully practicing the business of judicial judgment recovery in virtually all 50 states. Still, if you reside in one of the following states, you may want to consider the associated comment before making any decision.


Arizona: The Arizona Banking Commission is of the opinion that individuals involved in the business of judgment recovery should be licensed as collection agencies

Colorado: The State of Colorado has taken the position that individuals involved in the business of judgment recovery must be licensed as collection agencies. Before making the decision to enter this business, Colorado residents should investigate the requirements for becoming a licensed collection agency.

Connecticut: The Connecticut Department of Banking is of the opinion that individuals involved in the business of judgment recovery should be licensed as collection agencies.

Florida: The Florida Department of Banking and Finance is of the opinion that individuals involved in the business of judgment recovery should be licensed as collection agencies.

Iowa: The Iowa Bar Association is of the opinion that individuals involved in the business of judgment must purchase their judgments for a fixed consideration and without future obligation.

Idaho: The State of Idaho has taken the position that individuals involved in the business of judgment recovery must be licensed as collection agencies. Before making the decision to enter this business, Idaho residents should investigate the requirements for becoming a licensed collection agency.

Maryland: The Maryland Department of Labor, Licensing and Regulation is of the opinion that individuals involved in the business of judgment recovery should be licensed as a collection agency.

Minnesota: The Minnesota Department of Commerce is of the opinion that individuals involved in the business of judgment recovery should either be licensed as a collection agency or purchase their judgments for a fixed consideration and without future obligation.

Nevada: The Bar Association of Nevada is of the opinion that individuals involved in the business of judgment recovery should be licensed as collection agencies.

New Jersey: The Bar Association of New Jersey is of the opinion that individuals involved in the business of judgment recovery should purchase their judgments from the original judgment creditor for a fixed consideration and without future obligation. (Click here to view the opinion.)

Virginia: The Bar Association of Virginia is of the opinion that individuals involved in the business of judgment recovery should purchase their judgments from the original judgment creditor for a fixed consideration and without future obligation. (Click here to view the opinion.)

Washington: The Bar Association of Washington is of the opinion that individuals involved in the business of judgment recovery should either be licensed as collection agencies or purchase their judgments from the original judgment creditor for a fixed consideration and without future obligation.

Wisconsin: The Wisconsin Department of Financial Institutions is of the opinion that individuals involved in the business of judgment recovery should be licensed as collection agencies, however, this court case seems to indicate that no such license is required.


Note: Virtually all of the above opinions stem from the fact that in the standard Agreement used by judgment recovery professionals, there is some continuing financial obligation to the judgment creditor in that judgments are purchased on a future pay basis rather than purchased for a fixed consideration. One method of circumventing any conflict with these opinions would be to purchase the judgment outright and without future obligation. The Assignment Agreement provided by National Judgment Network is easily modified to reflect an outright purchase. Judgments purchased in this manner are usually purchased for pennies on the dollar.

Keep in mind that these are opinions. Still, residents of those states should conduct their own due diligence before making the decision to become involved in the business of judicial judgment recovery.

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