| Date: | 02/05/2020 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 2020-0001 |
WHEREAS, REUNION STUDENT LOAN FINANCE CORPORATION, (Reunion or Corporation) holding no license or registration with the Massachusetts Division of Banks (Division), has been advised of its rights to Notice and Hearing pursuant to Massachusetts 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 dated February 5, 2020, whereby, solely for the purpose of settling this matter and without admitting any allegations of fact or the existence of any violations of law Reunion agrees 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 acting as debt collector or third party loan servicer as defined in Massachusetts General Laws chapter 93, section 24;
WHEREAS, a person or entity must receive a license from the Commissioner prior to acting as a debt collector in Massachusetts pursuant to Massachusetts General Laws chapter 93, section 24A;
WHEREAS, a person or entity must register with the Commissioner prior to acting as a third party loan servicer in Massachusetts pursuant to Massachusetts General Laws chapter 93, section 24A;
WHEREAS, a person or entity acting as a third party loan servicer or debt collector must comply with the requirements of 209 CMR 18.00 et seq.;
WHEREAS, Reunion has its main office located at 105 1st Ave SW Aberdeen, South D 57401;
WHEREAS, on or about December 31, 2018 Reunion applied for a debt collector license with the Division;
WHEREAS, currently the Reunion has no licenses or registrations with the Division;
WHEREAS, Reunion has engaged in the business of a debt collector from at least January 1, 2014 through the present without a license;
WHEREAS, the parties now seek to resolve by mutual agreement the matters identified above.
ORDER
NOW COME the parties in the above-captioned matter, the Division and the Corporation, and stipulate and agree as follows:
1. The Corporation shall pay an administrative penalty to the Division in the amount of fifteen thousand dollars ($15,000). 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 Licensing Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
2. Reunion shall cease and desist from engaging in any business activity that requires licensing or registration from the Division, prior to obtaining the appropriate license or approval from the Division, including, but not limited to, debt collection, as such business is described in General Laws chapter 93, section 24.
3. Reunion shall establish, implement and maintain adequate internal policies and procedures to ensure that the Company refrains from engaging in any business activity that requires licensing or registration from the Division, prior to obtaining the appropriate license or approval from the Division.
4. It is understood that Reunion may submit a complete application to obtain the relevant debt collector company license from the Division. The Division shall have all of the discretion set forth within Massachusetts General Laws chapter 93, sections 24 to 28 and the Division's regulation 209 CMR 18.00 et seq., in determining whether to issue the relevant licenses to Reunion, provided, however, that any such applications shall not be denied solely as a result of any of the issues resolved by this Consent Order or because the Corporation entered into the Consent Order or agreed to the issuance of this Consent Order.
5. It is understood that, if licensed Reunion shall comply with the requirements set forth in applicable state and federal laws, rules, regulations, and published regulatory bulletins governing the conduct of those engaged directly or indirectly in the business of a debt collector in Massachusetts including but not limited to: Massachusetts General Laws chapter 93, sections 24 to 28, inclusive, the Division’s regulations 209 CMR 18.00 et seq. and shall establish, implement, and maintain appropriate policies and procedures to ensure compliance.
6. Nothing in this Consent Order shall be construed as permitting Reunion to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
7. Failure to comply with the terms of this Consent Order shall constitute grounds for formal regulatory action pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts, up to and including denial of application or revocation of licensure.
8. This Consent Order shall become effective immediately upon the date of its issuance.
9. The provisions of this Consent Order shall be binding upon Reunion, and their respective subsidiaries, officers and directors, successors and assigns, and those persons in active participation with them, directly or indirectly, acting individually or through any corporate or other entity.
10. In consideration of this Consent Order, the Division agrees not to pursue any other remedial measures, sanctions or penalties relative to this matter unless the Division is made aware of material information that is not addressed in this Consent Order, or if Reunion fails to comply with the terms of this Consent Order.
11. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, from taking any other action under separate authority affecting the Corporation or any of its officers and directors, or their successors or assigns.
12. The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as the Commissioner or a court of competent jurisdiction modifies, terminates, suspends, or sets aside any provision of this Consent Order.
13. In accordance with the terms of the Consent Agreement entered into by Reunion and the Commissioner, Reunion has waived any and all rights of appeal that it may have relative to this Consent Order or any of its provisions.
14. 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 Reunion.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:
Dated at Boston, Massachusetts, this 5th day of February, 2020.
By:
Mary L. Gallagher
Commissioner of Banks