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Opinion  Summary of Selected Opinion 99-187

Date: 01/01/2000
Organization: Division of Banks
Docket Number: 99-187

This opinion was issued in the first quarter of 2000.

Table of Contents

Massachusetts license requirement for collection agency licensed in another state

A corporation is licensed, bonded and has a physical presence and a local manager in both Arizona and Colorado. corporation proposes to contact Massachusetts' residents by mail and telephone from an existing Colorado location. The corporation's client is a collection services division of an Arizona corporation. The Arizona company proceeds with the collection, part of which is to turn the accounts to the corporation for collection.

Since the corporation is under the control of the collection statutes of Arizona and Colorado, the corporation requests a waiver of Massachusetts requirements for licensing, registration, bonding, testing, in state trust accounting, in state office or in state manager, as the corporation believes these requirements have all been met in Colorado and Arizona.

Massachusetts General Laws chapter 93, section 24 states, in part, that no person shall directly or indirectly conduct a collection agency or engage in the Commonwealth in the business of collecting or receiving payment for others of any account, bill or other indebtedness without first obtaining from the Commissioner of Banks a license to carry on said business. The statute excepts several entities from licensing, but does not except collection agencies licensed in another state. Moreover, the statute does not provide the Division with the authority to waive the licensing requirement for collection agencies at its discretion.

Therefore, if the corporation contacts Massachusetts's consumers and collects and receives payment for the collection services division of the Arizona corporation, then the corporation must be licensed as a Massachusetts collection agency.

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