By the Division of Banks

Licensing Of Employees Of A Licensed Small Loan Agency Who Wish To Work From Their Personal Residences

Mass. Gen. Laws chapter 140 governs the licensing of small loan agencies. Section 102 of said chapter provides that if a licensee desires to carry on business at more than one location, he shall procure a license for each place where the business is to be conducted. Any change of location of a licensee requires the prior approval of the Division. The Division's regulation 209 CMR 12.07 provides that a license shall be valid for the transaction of business at or from the address specified on the license.

It is the Division's position that loan officers employed by a licensee may engage in some activities at or from an unlicensed location, such as a residence. These activities include contacting consumer borrowers by telephone. Loan officers also may meet with borrowers at the borrower's home or office. It would not be permissible, however, for a loan officer to meet with borrowers at the loan officer's residence or for an officer to request delivery of documents to the residence, as such activities imply that the business is conducted from the employee's residence. The Division would review, on a case by case basis, applications to conduct business from an additional or different locations.

If an employee's residence is not a licensed location of the small loan agency, it would not be permissible for said employee to indicate his or her residence on their business cards. Listing telephone numbers, such as the employee's personal home number, on the business cards in addition to the number of the licensed location, would be permissible.