Sales finance companies are required to be licensed under Mass. Gen. Law ch. 255B § 2. A "sales finance company" is defined in Mass. Gen. Law ch. 255B § 1 to include a retail seller engaged in whole or in part, in the business of holding retail investment contracts acquired from retail buyers. A "retail investment contract" is designed to include an agreement "signed by the buyer in this state, pursuant to which the title to, the property in or lien upon a motor vehicle, which is the subject matter of a retail investment sale is retained or taken by a retail seller from a retail buyer as security". A retail seller engaged in the business of holding retail sales contracts would need to maintain a license pursuant to ch. 255B.
Chapter 255D is applicable to sales finance companies that purchase retail investment sale agreements which for purposes of said chapter are agreements involving the sale of goods or services. The definition of "goods", in Mass. Gen. Laws ch. 255D § 1, excludes "motor vehicles". Accordingly, it is the position of the Division of Banks that a license under Chapter 255D is not necessary for an entity's activity in selling motor vehicles.
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