Code of Massachusetts Regulations
209 CMR - DIVISION OF BANKS AND LOAN AGENCIES
Title 209 CMR 18.00 - Conduct of the business of debt collectors, student loan servicers, and third party loan servicers
Section 18.10 - Notice of Significant Events and Proposed Change in Ownership or Personnel
Universal Citation: 209 MA Code of Regs 209.18
Current through Register 1531, September 27, 2024
(1) A debt collector, licensed student loan servicer or registered third party loan servicer if applicable, shall notify the Commissioner immediately, and in writing within one business day, of the occurrence of any of the following significant developments. The provisions of 209 CMR 18.10 shall not apply to automatic federal student loan servicers.
(a) Filing for
bankruptcy or reorganization of the Licensee or registered third party loan
servicer, any partner, member, officer, director, or equivalent, or principal
employee.
(b) The filing of a
criminal indictment any way related to the activities of the debt collector,
licensed student loan servicer, or registered third party loan servicer, any
partner, member, officer, director, or equivalent, or principal employee
including, but not limited to, the handling and/or reporting of moneys received
and/or instruments sold.
(c)
Notification of the institution of license denial, cease and desist,
suspension, or revocation procedures, or other formal or informal regulatory
action, in any state against the debt collector, licensed student loan
servicer, or registered third party loan servicer, and the reasons
thereof.
(d) Receiving notification
of the initiation of any action by the Attorney General of the Commonwealth or
of any other state, pursuant to M.G.L. c. 93A, or any other comparable consumer
protection statute, and the reasons thereof.
(e) Receiving notification of the initiation
of a class action lawsuit on behalf of consumers against the debt collector,
student loan servicer licensee, or registered third party loan servicer that is
substantially related to the operation of the licensed business.
(f) Any partner, member, officer, director,
or equivalent, or principal employee being convicted of a misdemeanor that is
in any way related to debt collector, student loan servicing, or loan servicing
activities; or of any felony whatsoever.
(g) Any change to net worth resulting from
market valuation or future loss liability or any other change which causes the
net worth of the debt collector or student loan servicer licensee to fall below
the requirements of
209
CMR 18.03(2)(a).
(h) Closing or shortage of any trust account
where funds of clients paid to a debt collector are deposited.
(2)
(a) 30 days prior to any proposed change in
control in the ownership of a Licensee, or among the officers, partners or
directors of a Licensee, a notice shall forthwith be filed with the
Commissioner who may thereupon cause such investigation to be made as he or she
deems necessary, as if it were a new license. In the case of a corporation,
control is defined as a change of ownership by a person or group acting in
concert to acquire 10% of the stock, or the ability of a person or group acting
in concert to elect a majority of the directors or otherwise effect a change in
policy of the corporation.
(b) A
notice of change in personnel or ownership shall contain the following
information:
1. the name, address and
occupation of each proposed officer, partner, director or shareholders;
and
2. provide such other
information as the Commissioner may require.
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