Bill > H2191

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, as well as Chapters 255B and 255D of the General Laws, which previously governed the licensing and regulation of small loan companies, motor vehicle sales finance companies, and retail installment sales finance companies. 2. It creates a new Chapter 255G, which requires all persons engaged in making consumer loans (defined as 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 from the Commissioner of Banks. 3. It establishes the application and approval process for obtaining a license, as well as grounds for denying, suspending, or revoking a license. 4. It grants the Commissioner of Banks authority to investigate and examine licensees, establish regulations, and impose penalties for violations. 5. It sets maximum finance charge rates that licensed consumer lenders, motor vehicle sales finance companies, and retail installment sales finance companies can charge. 6. It provides for a transition period, allowing existing licensees under the prior laws to continue operating under the new Chapter 255G licensing requirements. Overall, this bill consolidates and modernizes the licensing and regulatory framework for various finance companies operating in Massachusetts, giving the Division of Banks greater oversight and enforcement powers.

Business and Industry

https://malegislature.gov/Bills/190/H2191