Requirement Of A Division Of A National Banking Association To Obtain Collection Agency License - Q3 1999By the Division of Banks
Mass. Gen. Laws chapter 93, section 24 prohibits any person or entity from collecting debts on behalf of another unless it is licensed as a collection agency in the Commonwealth. Although certain exemptions are contained in said section 24, there is no exemption for a national bank located outside of Massachusetts or for a subsidiary/division of a national bank located outside of Massachusetts. Therefore, a mortgage company that is a subsidiary/division of a national banking association must obtain a collection agency license to collect payments on mortgage loans which are more than 30 days past due in the Commonwealth.