Bill > S543

This bill, titled "Relative to the licensing and supervision of finance companies by the Division of Banks," aims to modernize and consolidate the regulation of certain financial businesses in Massachusetts. It repeals existing laws related to finance company licensing (Chapters 140, 255B, and 255D) and establishes a new, comprehensive regulatory framework under Chapter 255G. This new chapter, overseen by the Commissioner of Banks, will require companies engaged in making "consumer loans" (loans under $50,000 for personal, family, or household purposes), acting as motor vehicle sales finance companies, or acting as retail installment sales finance companies to obtain a license. The bill outlines the application process, including background checks and participation in a "Nationwide multi-state licensing system" for regulatory information sharing, and sets standards for license approval based on financial responsibility, character, and fitness. It also details provisions for license renewal, the establishment of maximum interest rates by a "small loans regulatory board," enforcement powers for the Commissioner of Banks, including investigations, examinations, and the ability to issue cease and desist orders, and penalties for violations, which can include fines and imprisonment. Importantly, the bill includes transitional provisions to ensure that existing licenses remain valid and provides a grace period for businesses newly subject to licensing requirements to comply.