Licensing Standards – Debt Collector Applicant

(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 18.50 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 18.50, 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 18.50(1). For the purposes of 209 CMR 18.52(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. (3) An applicant whose application has been denied under 209 CMR 18.52(2) may appeal the Commissioner’s action under M.G.L. c. 93, § 24G. (4) Waiver of Prohibition on Reapplication for a License. Notwithstanding the provisions of 18.52(2)(i), the Commissioner may consider an application for a debt collector license within 24 months of the date of an order from the Commissioner denying, suspending, or revoking that person’s license as a debt collector, if the Commissioner finds sufficient evidence to support a belief that the condition(s) which resulted in an order denying, suspending, or revoking the license of the debt collector applicant or licensee are not likely to recur and that all of the requirements of M.G.L. c. 93 §§24 through 28, inclusive, and 209 CMR 18.00. have been satisfied.