| Date: | 12/07/2021 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 2021-007 |
| Location: | Boston, Massachusetts |
WHEREAS, LENDINGTREE, LLC (LendingTree or the Company), a licensed small loan company under General Laws chapter 140, section 96 and 209 CMR 20.00 et seq., has been advised of its rights to Notice and Hearing pursuant to General Laws chapter 30A, section 10, 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 December 7, 2021 whereby, solely for the purpose of settling the allegations contained herein and without admitting any allegations of fact or the existence of any violations of law, LendingTree agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);
WHEREAS, the Commissioner has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a small loan company in Massachusetts pursuant to Massachusetts General Laws chapter 140, section 96;
WHEREAS, the Commissioner is charged with the administration of Massachusetts General Laws chapter 140, sections 96 through 114A, inclusive and applicable regulations found and 209 CMR 20.00 et seq., and 209 CMR 26.00 et seq., relating to the licensing and regulation of small loan companies;
WHEREAS, an examination of LendingTree was conducted pursuant to General Laws chapter 140, section 97 as of October 26, 2020 to assess the Company’s level of compliance with applicable Massachusetts and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a small loan company in the Commonwealth;
WHEREAS, the review period for the examination was September 19, 2018 through October 26, 2020;
WHEREAS, the Report of Examination (the Report) issued pursuant to the Division’s examination of LendingTree as of October 26, 2020 alleged non-compliance with applicable statutes, rules, and regulations governing the conduct of those engaged in the business of a small loan company in Massachusetts;
WHEREAS, Massachusetts General Laws 140, sections 96 through 114A requires entities to be licensed by the Commissioner of Banks if they are engaged, directly or indirectly, in the business of making loans of $6,000.00 or less and the interest and expenses paid on the loan exceed in the aggregate 12 percent per annum in the loan amount (small loans). This includes negotiating, arranging, aiding or assisting the borrower or lender in procuring or making small loans;
WHEREAS, books and records reviewed by the Division’s examiners form the basis for allegations that LendingTree facilitated small loans through an unlicensed entity during the examination review period;
WHEREAS, the Division’s regulation at 209 CMR 26.01(a), the Small Loan Rate Order, sets forth a maximum interest rate for small loans at “23% per annum of the unpaid balances of the amount financed calculated according to the actuarial method plus an administrative fee of $20 upon the granting of a loan”;
WHEREAS, books and records reviewed by the Division’s examiners form the basis for allegations that that LendingTree facilitated small loans with rates that are in excess of the interest rate thresholds set forth by the small loan rate order;
WHEREAS, the parties now seek to resolve by mutual agreement the allegations identified above.