Notice of Significant Events and Proposed Change in Ownership or Personnel

(1) A debt collector, licensed student loan servicer or registered third party loan servicer if applicable, shall notify the Commissioner immediately, and in writing within one business day, unless specifically noted otherwise below, of the occurrence of any of the following significant developments. The provisions of 209 CMR 18.61(1) shall not apply to automatic federal student loan servicers. (a) Filing for bankruptcy or reorganization of the Licensee or registered third party loan servicer, any partner, member, officer, director, or equivalent, or principal employee. (b) The filing of a criminal indictment any way related to the activities of the debt collector, licensed student loan servicer, or registered third party loan servicer, any partner, member, officer, director, or equivalent, or principal employee, including, but not limited to, the handling and/or reporting of moneys received and/or instruments sold. (c) Notification of the institution of license denial, cease and desist, suspension, or revocation procedures, or other formal or informal regulatory action, in any state against the debt collector, licensed student loan servicer, or registered third party loan servicer, and the reasons thereof. (d) Receiving notification of the initiation of any action by the Attorney General of the Commonwealth or of any other state, pursuant to M.G.L. c. 93A, or any other comparable consumer protection statute, and the reasons thereof. (e) Filing of a proposed settlement of a class action lawsuit that was filed on behalf of consumers against the debt collector, student loan servicer licensee, or registered third party loan servicer that is substantially related to the operation of the licensed business. Written notification to the Commissioner under this subsection must be provided within ten business days. (f) Any partner, member, officer, director, or equivalent, or principal employee being convicted of a misdemeanor that is in any way related to debt collector, student loan servicing, or loan servicing activities; or of any felony whatsoever. (g) Closing or shortage of any trust account where funds of clients paid to a debt collector are deposited. (2) (a) 30 days prior to any proposed change in control in the ownership of a Licensee, or among the officers, partners or directors of a Licensee, a notice shall forthwith be filed with the Commissioner who may thereupon cause such investigation to be made as he or she deems necessary, as if it were a new license. In the case of a corporation, control is defined as a change of ownership by a person or group acting in concert to acquire 10% of the stock, or the ability of a person or group acting in concert to elect a majority of the directors or otherwise effect a change in policy of the corporation. The provisions of 209 CMR 18.61(2) shall not apply to automatic federal student loan servicers. (b) A notice of change in personnel or ownership shall contain the following information: (1) the name, address and occupation of each proposed officer, partner, director or shareholders; and (2) provide such other information as the Commissioner may require. (3) A Licensee shall notify the Commissioner as soon as the Licensee becomes aware of any change to its net worth resulting from month-end market valuation or future loss liability or any other change which causes the net worth of the Licensee to fall below the requirements of 209 CMR 18.50(2)(a). The provisions of 209 CMR 18.61(3) shall not apply to automatic federal student loan servicers.