Motor Vehicle Sales Finance Company Licensing Requirements
Certain entities engaged in the business of a motor vehicle sales finance company must be licensed pursuant to Mass. Gen. Laws chapter 255B, § 2. Under the statute, a sales finance company is defined as "any person engaged, in whole or in part, in the business of purchasing retail installment sales contracts from one or more retail sellers and...a retail seller engaged, in whole or in part, in the business of holding retail installment contracts acquired from retail buyers". Thus, a licensee no longer engaged in the business of a sales finance company would not be required to retain its motor vehicle sales finance license pursuant to Mass. Gen. Laws chapter 255B. However, the Division of Banks reserves the right to enforce the requirements of Mass. Gen. Laws chapter 255B and its implementing regulation, 209 CMR 20.00 et seq. upon such a former licensee through the examination and investigation powers set forth under Mass. Gen. Laws chapter 255B, §§ 4 and 6, during the time period that any retail installment sales agreement with an outstanding balance exists.