More and more states are requiring debt buyer to become licensed as a debt collector to buy debt and enforce the terms of the contract. Some states, such as Arkansas, require the debt buyer to be licensed, even if they have an attorney or someone else collect the debt on their behalf, such as Madison. Massachusetts does not require the debt buyer to be licensed if they use a third party to collect the debt on their behalf.
California was the latest state to add a debt collector license in 2022 and requires debt buyers to be licensed as well.
Click this link to see a map of the states that require a debt buyer license. Regulatory States: Debt Buyers – Collection Licenses. You will need to go to that states website and review the requirements to see if you need to have a debt buyer license or not, depending on whether you are collecting on the debt yourself or having an attorney or servicer do the collection for you.