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Consent Order

Consent Order Debt Management, Inc.

Date: 12/28/2018
Organization: Division of Banks
Docket Number: 2018-010
Location: Mansfield, Massachusetts

WHEREAS, DEBT MANAGEMENT, INC.,  Mansfield, Massachusetts (DMI or the Corporation), a licensed debt collector under Massachusetts General Laws, chapter 93, section 24A, has entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER (Consent Agreement) with representatives of the Division of Banks (Division) dated December 28, 2018, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of relevant state or federal laws and regulations, DMI agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, an examination of  DMI was conducted pursuant to General Laws chapter 93, section 24D as of April 23, 2018 to assess the Corporation’s level of compliance with applicable Massachusetts and federal statutes, rules and regulations governing the conduct of those engaged in the business of a debt collector in the Commonwealth;

WHEREAS, the Report of Examination (the Report) issued pursuant to the Division’s examination of DMI alleged substantial non-compliance with applicable state statutes, rules, and regulations governing the conduct of those engaged in the business of a debt collector in the Commonwealth, including, but not limited to falsely threatening consumers with legal action, rude and abusive behavior by collectors, charging excessive payment convenience fees, commingling client funds by paying operating expenses out of the escrow account;

WHEREAS, DMI has affirmed that it has ceased engaging in debt collector activity in Massachusetts;

WHEREAS, on or about December 20, 2018 DMI requested surrender/cancellation of its Massachusetts debt collector license through the Nationwide Multi-State Licensing System & Registry (NMLS); and

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Report.

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NOW COME the parties in the above-captioned matter, the Division and DMI, who stipulate and agree as follows:

  1. DMI shall pay an administrative penalty to the Division in the amount of five thousand dollars $5,000.00 in consideration of DMI’s compliance deficiencies as described in the Report. The penalty shall be due upon execution and shall be payable by check to the "Commonwealth of Massachusetts," mailed to the Division of Banks, Attn: Consumer Finance Supervision Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
  2. DMI and its officers and directors shall refrain from submitting an application to obtain a debt collector license from the Commissioner for a period of twelve (12) months from the execution of this Consent Order.
  3. To the extent that DMI or any of its officers or directors wishes to resume business as a debt collector at the expiration of the 12-month term as set forth above, DMI or its officers or directors shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. The Commissioner shall have all of the discretion set forth within General Laws chapter 93, section 24B and the Division's regulation 209 CMR 18.00 et seq. in determining whether to issue a license to DMI or any of its officers or directors to conduct the licensed business; provided however, that any such application shall not be denied on the basis of this Consent Order.
  4. The provisions of this Consent Order shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting DMI, its successors or assigns.
  5. Nothing in this Consent Order will be construed as permitting DMI to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
  6. This Consent Order will become effective immediately upon the date of its issuance. 
  7. The provisions of this Consent Order are binding upon DMI, its owners, officers and directors, and their successors and assigns.
  8. The provisions of this Consent Order will remain effective and enforceable except to the extent that, and until such time as, any provisions of this Consent Order will have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
  9. In accordance with the terms of the Consent Agreement entered by DMI and the Commissioner, DMI has waived all rights of appeal that it may have relative to this Consent Order or any of its provisions.
  10. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter.  There are no other agreements between the Division and DMI.

By order and direction of the Commissioner of Banks:

Dated at Boston, Massachusetts on this 28th day of December, 2018.
By: Merrily S. Gerrish
Acting Commissioner of Banks
Commonwealth of Massachusetts