(1) A license to engage in the business of a
debt collector will be issued to an applicant if the Commissioner, upon review
of the application and all other relevant information, determines that all of
the requirements of M.G.L. c. 93, §§ 24 through 28, and
209
CMR 18.03 have been met.
(2) The Commissioner may deny an application
for a license to engage in the business of a debt collector, or the renewal
thereof, if the applicant has not satisfied the requirements of M.G.L. c. 93,
§§ 24 through 28 or
209
CMR 18.03, or for any of the following
reasons, if the applicant, or any partner, member, officer, director, or
equivalent, or principal employee has:
(a)
violated, or engaged in a pattern of violations, of any state or federal law
applicable to the conduct of the business of a debt collector including, but
not limited to, M.G.L. c. 93A, M.G.L. c. 93, §§ 24 through 28, or any
rule, regulation, or administrative order or directive promulgated
thereunder;
(b) defaulted on a
payment of money collected or received for another;
(c) within ten years prior to the filing of
the application,
1. been convicted of or
pleaded nolo contendere to a felony,
2. had any adverse judgments entered against
it in any court action or in any administrative enforcement action, in any
jurisdiction, based upon allegations of fraud, misrepresentation, or
dishonesty, or
3. committed any act
involving dishonesty, fraud, or deceit, which act is substantially related to
the qualifications, functions, or duties of a person engaged in the business of
a debt collector;
(d)
made, or caused to be made, a false or misleading statement of a material fact
in the application; or has withheld from the Commissioner any information
which, if submitted by the applicant, would have warranted the Commissioner in
refusing to issue such license;
(e)
conducted, or will conduct, its business in an unsafe and unsound
manner;
(f) in its audited or
reviewed financial statements, a notation made by an independent certified
public accountant referencing existing conditions that raise doubt about the
applicant's ability to continue as a going concern;
(g) an adverse credit history, as determined
by the Commissioner, upon review of a current credit report submitted with the
application pursuant to
209
CMR 18.03(1). For the
purposes of 209 CMR 18.05(2)(g), an adverse credit history, reviewed as of the
date of application, shall include, but is not limited to, any outstanding lien
or unsatisfied judgment, an uncured default upon a government sponsored loan or
student loan, or any other delinquent account in excess of 60 days past
due;
(h)
1. had a license or registration denied,
suspended, or revoked by the Commissioner or the licensing authority of any
other state;
2. been a partner,
member, officer, director, manager, or equivalent of an entity which has had a
license or registration revoked by the Commissioner, or the licensing authority
of any other state; or
3. if a
natural person, either individually or as an employee, while acting in the
course of the debt collection business, acted in a manner which would have
warranted the Commissioner in suspending or revoking the license of the
individual or entity;
(i)
within 24 months of the date of application, been the subject of an order of
the Commissioner denying an application for a license or an order denying,
suspending, or revoking that person's license as a debt collector; or
(j) failed to respond to a written
notification of a deficiency in the application, or in any other relevant
information required by the Commissioner to be submitted with the application,
within 30 days of the date of such written notice from the Division.
(3) An applicant whose application
has been denied under 209 CMR 18.05(2) may appeal the Commissioner's action
under M.G.L. c. 93, § 24G.
(4)
Waiver of Prohibition on Reapplication for a License.
Notwithstanding the provisions of 18.05(2)(i), the Commissioner may consider an
application for a debt collector license within 24 months of the date of an
order from the Commissioner denying, suspending, or revoking that person's
license as a debt collector, if the Commissioner finds sufficient evidence to
support a belief that the condition(s) which resulted in an order denying,
suspending, or revoking the license of the debt collector applicant or licensee
are not likely to recur and that all of the requirements of M.G.L. c. 93
§§ 24 through 28 inclusive, and
209 CMR 18.00 have been
satisfied.
