Bill > H1058

This bill makes several key changes to the licensing and supervision of finance companies by the Division of Banks in Massachusetts: 1. It repeals sections 96 through 114 and section 114A of Chapter 140, which previously governed the licensing and regulation of small loan and finance companies. 2. It establishes a new Chapter 255G that requires entities engaged in "consumer lending" (loans under $50,000 for personal, family or household purposes) to obtain a license from the Commissioner of Banks. Certain entities like banks are exempt from this licensing requirement. 3. It establishes application, approval, and renewal requirements for consumer lending licenses, including background checks and financial responsibility standards for applicants. 4. It gives the Small Loans Regulatory Board the authority to set maximum rates of interest and charges for consumer loans, and prohibits exceeding those maximums. 5. It provides the Commissioner of Banks with investigative and examination powers over licensed consumer lenders, and allows the Commissioner to suspend or revoke licenses for violations. 6. It establishes penalties for unlicensed consumer lending activity. The bill is intended to provide updated and comprehensive regulation of the consumer finance industry in Massachusetts.

Business and Industry

https://malegislature.gov/Bills/191/H1058