Servicer Reporting Credit Experience With Debtor In Servicer's Name - Q3 1999

By the Division of Banks

The regulation governing debt collections at 209 CMR 18.18(8) states that it would constitute an unfair and deceptive act for a collection agency to report to a consumer reporting agency on its transactions or experiences with a debtor in the collection agency's name. However, a collection agency may, with the express written authorization of a creditor, report to a consumer reporting agency in the creditors name. It is the Division's position that this regulation is not subject to interpretation. The Division's position remains that a servicer, licensed in Massachusetts as a sales finance company pursuant to Mass. Gen. Laws chapter 255B and as a debt collection agency pursuant to Mass. Gen. Laws chapter 93, section 24, cannot report its credit experiences with a debtor in the servicer's name. That position does not change even when the servicer has served in that capacity throughout the life of the contract. To do so, would violate the regulation and implicate the provisions of the Commonwealth's omnibus consumer protection act, chapter 93A of the General Laws.