| Date: | 01/10/2022 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 2021-008 |
| Location: | Boston, Massachusetts |
WHEREAS, FIRST AMERICAN NATIONAL, LLC, FIRST AMERICAN FUNDING, LLC, B&B FUNDING, LLC, and COASTAL FINANCIAL, LLC (collectively, “the Companies”) have been advised of their right to Notice and Hearing pursuant to M.G.L. chapter 30A, sections 10 and 11, and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER (Consent Agreement) with the Division of Banks (Division) dated January 10, 2022 whereby, solely for the purpose of settling this matter and without admitting any allegations of fact or the existence of any violations of law, the Companies agree to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);
WHEREAS, the Division, through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a debt collector in Massachusetts pursuant to M.G.L. chapter 93, sections 24 through 28 and 209 C.M.R. 18.00 et seq.;
WHEREAS, the Companies are, and at all relevant times have been, foreign companies conducting business in Massachusetts, with their main office located at 1055 Parsippany Blvd, Ste 200, Parsippany, New Jersey, 07054;
WHEREAS, Ira F. Bailey is, and at all relevant times has been, the manager of the Companies;
WHEREAS, the Companies have never applied for a license to engage in the business of a debt collector in Massachusetts;
WHEREAS, on or about October 6, 2021, the Division received information that the Companies may be engaged in the business of a debt collector without the requisite license;
WHEREAS, books and records reviewed by the Division revealed that the Companies have engaged in the business of a debt collector from at least on or about May 28, 2020 to on or about December 14, 2021 in Massachusetts without the requisite license; and
WHEREAS, First American Trust, LLC, is an entity related to the Companies described above. Previously, on or about April 23, 2020, the Commissioner issued a Cease Directive directing First American Trust, LLC to cease engaging in debt collection activity that is in violation of M.G.L. 93, section 24A;
WHEREAS, First American Trust, LLC, is and at all relevant times has been, a foreign company conducting business in Massachusetts, with its main office located at 1055 Parsippany Blvd, Ste 200, Parsippany, New Jersey, 07054;
WHEREAS, Ira F. Bailey is, and at all relevant times has been, one of the managers of First American Trust, LLC;
WHEREAS, on or about March 18, 2019, the Division received information that First American Trust, LLC may be engaged in the business of a debt collector without the requisite license;
WHEREAS, books and records reviewed by the Division revealed that First American Trust, LLC engaged in the business of a debt collector from at least on or about November 1, 2019 to on or about April 23, 2020 in Massachusetts without the requisite license;
WHEREAS, as a result of the review of the aforementioned unlicensed debt collection activity by First American Trust, LLC, as described above, on or about April 23, 2020, the Commissioner issued First American Trust, LLC a Cease Directive directing First American Trust, LLC to cease engaging in debt collection activity that is in violation of M.G.L. 93, section 24A;
WHEREAS, based on First American Trust, LLC’s representations to the Division, First American Trust, LLC has utilized a licensed company to engage in the business of a debt collector in Massachusetts to collect debts on accounts in Massachusetts on their behalf since the effective date of the April 23, 2020 Cease Directive; and
WHEREAS, the parties now seek to resolve by mutual agreement the matters identified above.