NOW COME the parties in the above-captioned matter, the Division, NCAFPI, and New Credit who stipulate and agree as follows:
- The Company shall pay an administrative penalty to the Division in the amount of ten thousand dollars ($10,000). 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.
- NCAFPI affirms that it has ceased purchasing small loans in Massachusetts as of, or prior to February 26, 2018.
- NCAFPI shall immediately surrender its Massachusetts Small Loan Company License by submitting a “Request to Surrender” to the Division through the Nationwide Multi-State Licensing System & Registry (NMLS).
- New Credit will not accept for servicing or debt collection any new or additional Massachusetts debt collection accounts beyond the Massachusetts accounts it is servicing as of the date of this Consent Order. Promptly after those accounts have been paid off or servicing of those accounts has been transferred to a replacement duly licensed servicer, New Credit shall surrender its Massachusetts Debt Collector License by submitting a “Request to Surrender” to the Division through the NMLS.
- Within thirty (30) days from the execution of this Consent Order, NCAFPI shall conduct portfolio review of all Massachusetts small loans purchased by the Company, to identify small loans with rates in excess of 23%, and shall reimburse all affected consumers for the full amount of interest and fees collected. NCAFPI shall further waive all future interest and fees on the identified accounts. It is understood that the aforementioned portfolio review shall also include all small loans that were purchased prior to the Company becoming licensed in Massachusetts as a small loan company.
- Within thirty (30) days from the execution of this Consent Order, NCAFPI shall conduct portfolio review of all Massachusetts small loans purchased by the Company, to identify small loans purchased prior to obtaining a license on August 1, 2016, and shall reimburse all affected consumers for the full amount of interest and fees collected. NCAFPI shall further waive all future interest and fees on the identified accounts.
- NCAFPI shall immediately cease purchasing any Massachusetts loans that are not regulated under the small loan rate order and that exceed the Massachusetts usury threshold of twenty percent per annum (usurious loans), unless proper notification has been made to the Massachusetts Office of the Attorney General (Attorney General), as required under M.G.L. c. 271, section 49(e).
- Within thirty (30) days from the execution of this Consent Order, NCAFPI shall notify the Attorney General that the Company has purchased from a bank loans with rates that exceed twenty percent per annum, and shall provide the Attorney General with a list of all such loans.
- NCAFPI will submit to the Division documentation of the review performed on its Massachusetts collection accounts, including a list of all the accounts reviewed, which shall include, at a minimum: the name of the consumer; the account number; the origination date; the contract interest rate; the total fees charged at prior to origination; the annual percentage rate; the date of each payment received; the amount of each payment received from the consumer; and the check number of each refund along with copies of checks or evidence of appropriate adjustments made to the consumer’s account.
a. NCAFPI shall certify that it has made a reasonable good faith effort to identify the current address of all consumers who are entitled to refund checks. In all cases where consumers cannot be located, the Company shall comply with Massachusetts General Laws chapter 200A regarding the disposition of unclaimed property.
- 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 NCAFPI and/or New Credit, their successors or assigns.
- Nothing in this Consent Order will be construed as permitting NCAFPI or New Credit to violate any law, rule, regulation, or regulatory bulletin to which the Company is subject.
- This Consent Order will become effective immediately upon the date of its issuance.
- The provisions of this Consent Order are binding upon NCAFPI and New Credit, their owners, officers and directors, and their successors and assigns.
- 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.
- In accordance with the terms of the Consent Agreement entered by NCAFPI and New Credit and the Commissioner, NCAFPI and New Credit have waived all rights of appeal that they may have relative to this Consent Order or any of its provisions.
- 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, NCAFPI and New Credit.
By order and direction of the Commissioner of Banks
Dated at Boston, Massachusetts, this 11th day of December, 2018.
By: Merrily S. Gerrish
Acting Commissioner of Banks
Commonwealth of Massachusetts