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Regulatory Bulletin

Regulatory Bulletin  5.1-101 Enforcement Policy for Unlicensed Entities

Table of Contents

1.0 Applicability and scope

This bulletin sets forth the Division of Banks’ (Division) enforcement policies relative to unlicensed business activity. Licensing standards are intended to ensure that individuals and businesses operate honestly, fairly, soundly, and in the public interest.  The licensing laws and regulations protect consumers by safeguarding against unfair or abusive practices and misleading or false representations.  The failure or unwillingness of any person to comply with the licensing laws and regulations exposes consumers to unnecessary financial risk and potential abusive practices.  The Division, therefore, issues the following policy to ensure that the licensing requirements are implemented and that Massachusetts consumers will receive the benefits of licensing.

2.0 Policy

The Division has jurisdiction over the licensing or registration of persons engaged in the business of a: mortgage lender; mortgage broker; mortgage loan originator; small loan company; sales finance company; insurance premium finance company; debt collector; third party loan servicer; foreign transmittal agency; check casher; and check seller.

Any person who engages in or advertises any of the activities listed above without being properly licensed or registered shall be directed, in writing, which may be published, to cease engaging in such activity until such person either demonstrates that a license is not required or obtains the appropriate license.

Any person who fails to comply with the Division’s directive to cease engaging in unlicensed activity shall be subject to any and all of the following actions:

  1. Such person’s name, address, and other pertinent information regarding their unlicensed activity may be published by the Division.
  2. The Division may deny any pending applications submitted by such person.
  3. Such person may be assessed monetary penalties.
  4. The Division may refer the matter to the Attorney General of the Commonwealth for enforcement.

3.0 Historical notes

This bulletin was first issued on November 13, 1997 as Administrative Bulletin 37-1.  The bulletin was revised on January 15, 1998 as Regulatory Bulletin 5.1-101. The bulletin was revised on July 31, 2015. 

4.0 Authority

M.G.L. c. 93, §§ 24-28; M.G.L. c. 140, §§ 96-114A; M.G.L. c. 167, § 4; M.G.L. c. 169; M.G.L. c. 169A; M.G.L. c. 255B; M.G.L. c. 255C; M.G.L. c. 255D; M.G.L. c. 255E; M.G.L. c. 255F; 209 CMR 18.00; 209 CMR 20.00; 209 CMR 44.00; 209 CMR 45.00; 209 CMR 42.00; 209 CMR 41.00

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