DOB: Debt Negotiation Licensing Information

Debt Negotiation Licensing

Who needs a license?

"Debt negotiation" means, for or with the expectation of a fee, commission or other valuable consideration, assisting a debtor in negotiating or attempting to negotiate on behalf of a debtor the terms of a debtor's obligations with one or more mortgagees or creditors of the debtor, including the negotiation of short sales of residential property or foreclosure rescue services.

Who does not need this license?
  1. Any attorney admitted to the practice of law in this state who engages or offers to engage in debt negotiation as an ancillary matter to such attorney's representation of a client.

    Declaratory Ruling re: Attorney Exemption
  2. Any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union, provided subsidiaries of such institutions other than operating subsidiaries of federal banks and federally-chartered out-of-state banks are not exempt from licensure.
  3. Any person licensed as a debt adjuster pursuant to Sections 36a-655 to 36a-665, inclusive, of the Connecticut General Statutes while performing debt adjuster services.
  4. Any person acting under the order of a court.
  5. Any bona fide nonprofit organization organized under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.
Mortgage Loan Originator License Requirement

Effective October 1, 2011, any individual who engages or offers to engage in debt negotiation of a residential mortgage loan on behalf of a mortgagor for compensation or gain must first obtain and annually maintain a mortgage loan originator license, under Section 36a-489, unless exempt from such licensure.  Please see Section 36a-671e of the Connecticut General Statutes.
Opinion re:  Mortgage Loan Licensure Requirement
Essential Statutes - Updated to January 1, 2013  

Please reference the relevant statutes before applying for a license.  Please also note the Schedule of Maximum Fees.

Frequently Asked Questions

Licensing Fees

The licensing fees for the main office and the branch office applications are the same.

            $800 - Application filed between 10/1/14 and 9/30/15

License Application Forms

Main Office

If you will be conducting Connecticut licensing activity from the corporate office/headquarters, you are required to designate this location as the "Main Office."
If you will not be conducting Connecticut licensing activity from this location, then the initial application filed with this department will be considered the Main Office for licensing purposes in the State of Connecticut.

Branch Office

Any additional location to be licensed in the State of Connecticut.

Other Debt Negotiation Forms

Change of Address (1 page, 34 KB)
Change of Name (1 page, 33 KB)
Change of Officer (4 pages, legal size, 326 KB)
Change of Supervisor (3 pages, legal size, 314 KB)
Office Closure (1 page, 31 KB)


Connecticut Department of Banking
Consumer Credit Division
260 Constitution Plaza
Hartford, CT 06103-1800

Staff:  Maria Burgos
Telephone: 860-240-8211 or toll-free 800-831-7225
Fax: (860) 622-4971

Visit Connecticut's Business Response Center for information on all licensing and permitting activities across Connecticut State government.

Content Last Modified on 1/23/2015 8:20:42 AM