Quote Quoting jk
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OP is not collecting his fees from the customer as he does not get paid by the customer. He gets paid by his employer and as such, the contract between his employer and the customer has nothing to do with the OP other than that is where they get the amount to be paid to the OP.

So, being an IC performing what he does, and then being hired to collect for that company, is not legal unless he has the appropriate licensing. He is doing more than simply being asked to pick up the payment. He is being asked to actively make collection efforts.
As far as being legal or illegal, say it's illegal, then a common practice that took hold in the last 20 or so years, practiced widely, is illegal. If that is in fact the case, then the laws have not yet caught up with "common industry practices". I know for a fact the practice is widespread due to the lack of "collection jobs" compared to years ago, in fact some weeks, no openings at all in the papers.

The common practice also is "subcontractor reps" don't get paid their commissions till the invoices are paid, it is implicit that the rep asks for the payment, and I know for a fact they do. I also know for a fact no company I was with had ever asked reps to go get "collection agency licenses".

In fact, in rent collections, where requirements are similar, a business which I am more familiar, it is common practice for one tenant of small apartment buildings, usually less than 10 units, and small commercial strips like the one where my dad helped to collect payments, one tenant collects the rent and then forward then onto the principals, despite the fact that the law says "only licensed real estate brokers" are allowed to collect rent checks. Yes, my dad does say to the other tenants "may I have the rent check", so if that is collections, and not couriering. So, just about every small apartment owner and commercial strip owner is violating the law.

Are these tenants employees?? No. Are they compensated?? Yes, they do get to pay lower rent. By defintion, for the collection tasks, they are "collecting rent for others for a fee" as described by state law, subcontractor or not.

When something becomes "industry practice", then it becomes totally ILLOGICAL to go back to the old way, legal or not. I read not long ago some people who help other list items for sale on ebay had to get an "auctioneers" license", after some complaints (probably by people with nothing better to do), and the state laws had to be changed, since the "auctioneers" licensing course had more to do with "live cattle auctions", nothing with listing "fine art" on ebay.

I would say if some state insists that any one asking for payment for another has to "get a license", then it's about time for the state law to be changed. Until then, expect "industry practice" to continue, expect the laws to be widely violated, IF in fact they are violated.