Division of Banks
Massachusetts Registry of Motor Vehicles
|Referenced Sources:||M.G.L. c. 255B|
MassDOT, RMV Division and the Massachusetts Division of Banks have implemented collaborative procedures to ensure that motor vehicle dealers that engage in motor vehicle sales financing are properly licensed as sales finance companies, as required pursuant to M.G.L. chapter 255B.
On February 26, 2010, the MassDOT, RMV Division issued a new policy statement announcing that the Registrar will not knowingly permit a motor vehicle dealer who sells motor vehicles under a retail installment contract and holds the contracts to obtain a “lien code” unless the dealer is in possession of the required license. Subsequently, MassDOT, RMV Division has worked with the Division of Banks to identify motor vehicle dealers who may be engaging in unlicensed sales finance activity. Since April 4, 2010, the Division of Banks has issued cease-activity directives to 75 motor vehicle dealers for suspected unlicensed sales finance activities. All cease directives are publicly available on the Division’s website