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Industry Letter: Financial Standards for Consumer Finance Money Services Businesses

Industry letter to provide a reminder to licensees regarding the submission of annual financial statements.

Table of Contents

April 12, 2022 Industry Letter

April 12, 2022

To the Chief Executive of the Licensee Addressed: 

The Massachusetts Division of Banks (Division) has issued this Industry Letter to provide a reminder to licensees regarding the submission of annual financial statements.  Pursuant to Division regulation, an applicant for license renewal shall submit financial statements annually through the Nationwide Multi-State Licensing System and Registry (NMLS) within 90 days of the close of its most recent fiscal year.

The requirements for the scope and content of the submitted financial statements vary by license type, so licensees are encouraged to review the relevant regulation in accordance with applicable licenses as reflected below:

License Type

MA Regulation

Student Loan Servicer

209 CMR 18.00

Debt Collector

209 CMR 18.00

Motor Vehicle Sales Finance Company

209 CMR 20.00

Insurance Premium Finance Company

209 CMR 20.00

Retail Installment Sales Finance Company

209 CMR 20.00

Foreign Transmittal Agency

209 CMR 45.00

Check Seller

209 CMR 45.00

 

A licensee’s failure to provide financial statements that meet the specific criteria set forth in accordance with regulatory requirements may result in the nonrenewal of the license, or the restriction of a licensee’s ability to apply for a license renewal through NMLS. 

Licensees are also reminded that an evaluation of a licensee’s financial responsibility is part of the Massachusetts annual license renewal process.  Licensees shall demonstrate and provide the Commissioner with evidence of financial responsibility.  To that end, licensees whose financial statements reflect a negative adjusted net worth (as calculated by the Division’s regulations) may be required to submit additional information and/or enter into a regulatory agreement to resolve concerns related to financial responsibility.

Should you have any questions related to this Industry Letter, please contact Deputy Commissioner Andrea L. Cipolla at (617) 956-1532, or andrea.cipolla@mass.gov.

Sincerely, 

Christopher R. Pope

Senior Deputy Commissioner

Non-depository Institution Supervision

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