|Organization:||Division of Banks|
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.