Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 18.00 - Conduct of the business of debt collectors, student loan servicers, and third party loan servicers › Section 18.05 - Licensing Standards - Debt Collector Applicant

Current through Register 1525, July 5, 2024
(1) A license to engage in the business of a
			 debt collector will be issued to an applicant if the Commissioner, upon review
			 of the application and all other relevant information, determines that all of
			 the requirements of M.G.L. c. 93, §§ 24 through 28, and
			 209
			 CMR 18.03 have been met.
(2) The Commissioner may deny an application
			 for a license to engage in the business of a debt collector, or the renewal
			 thereof, if the applicant has not satisfied the requirements of M.G.L. c. 93,
			 §§ 24 through 28 or
			 209
			 CMR 18.03, or for any of the following
			 reasons, if the applicant, or any partner, member, officer, director, or
			 equivalent, or principal employee has:
(a)
			 violated, or engaged in a pattern of violations, of any state or federal law
			 applicable to the conduct of the business of a debt collector including, but
			 not limited to, M.G.L. c. 93A, M.G.L. c. 93, §§ 24 through 28, or any
			 rule, regulation, or administrative order or directive promulgated
			 thereunder;
(b) defaulted on a
			 payment of money collected or received for another;
(c) within ten years prior to the filing of
			 the application,
1. been convicted of or
			 pleaded
nolo contendere
to a felony,
2. had any adverse judgments entered against
			 it in any court action or in any administrative enforcement action, in any
			 jurisdiction, based upon allegations of fraud, misrepresentation, or
			 dishonesty, or
3. committed any act
			 involving dishonesty, fraud, or deceit, which act is substantially related to
			 the qualifications, functions, or duties of a person engaged in the business of
			 a debt collector;
(d)
			 made, or caused to be made, a false or misleading statement of a material fact
			 in the application; or has withheld from the Commissioner any information
			 which, if submitted by the applicant, would have warranted the Commissioner in
			 refusing to issue such license;
(e)
			 conducted, or will conduct, its business in an unsafe and unsound
			 manner;
(f) in its audited or
			 reviewed financial statements, a notation made by an independent certified
			 public accountant referencing existing conditions that raise doubt about the
			 applicant's ability to continue as a going concern;
(g) an adverse credit history, as determined
			 by the Commissioner, upon review of a current credit report submitted with the
			 application pursuant to
			 209
			 CMR 18.03(1). For the
			 purposes of 209 CMR 18.05(2)(g), an adverse credit history, reviewed as of the
			 date of application, shall include, but is not limited to, any outstanding lien
			 or unsatisfied judgment, an uncured default upon a government sponsored loan or
			 student loan, or any other delinquent account in excess of 60 days past
			 due;
(h)
1. had a license or registration denied,
			 suspended, or revoked by the Commissioner or the licensing authority of any
			 other state;
2. been a partner,
			 member, officer, director, manager, or equivalent of an entity which has had a
			 license or registration revoked by the Commissioner, or the licensing authority
			 of any other state; or
3. if a
			 natural person, either individually or as an employee, while acting in the
			 course of the debt collection business, acted in a manner which would have
			 warranted the Commissioner in suspending or revoking the license of the
			 individual or entity;
(i)
			 within 24 months of the date of application, been the subject of an order of
			 the Commissioner denying an application for a license or an order denying,
			 suspending, or revoking that person's license as a debt collector; or
(j) failed to respond to a written
			 notification of a deficiency in the application, or in any other relevant
			 information required by the Commissioner to be submitted with the application,
			 within 30 days of the date of such written notice from the Division.