Collection Agency Licensing Requirements:
The Massachusetts Division of Banks (the Division) is an agency within the Office of Consumer Affairs. The Division has jurisdiction over Massachusetts state-chartered financial institutions and out-of-state financial institutions that have been granted authority to do business in the Commonwealth. By law, the Division is required to examine or regulate the following state-chartered financial institutions and facilitites to ensure their compliance with state and federal laws and to oversee their safe and sound operation:

The Division also licenses and examines certain consumer or creditor servicing agencies. These include:

• Check Cashers
• Check and Money Order Issuers
• Collection Agencies
• Foreign Transmittal Agencies
• Insurance Premium Finance Agencies
• Mortgage Brokers and Lenders
• Motor Vehicle Sales Finance Companies
• Retail Installment Sales and Service Agencies
• Small Loan Agencies

Consumer Compliance Unit

To obtain an Application, review a License Application or an Annual Report of a Licensee

GENERAL LAWS OF MASSACHUSETTS

Chapter 93: Section 24. Collection agencies; license; bond; regulations.

Section 24. No person not being an attorney at law authorized to practice in the commonwealth, a bank as defined in chapter one hundred and sixty-seven, a national banking association having its main office in the commonwealth, or a person whose usual business is not that of a collection agency, who act as agent for such bank or national banking association for the purpose of collecting any accounts, bills or other indebtedness which arise from such person's usual business, or an agent or independent contractor employed for the purpose of collecting charges or bills owed by a tenant to a landlord or owed by a customer to a corporation subject to the supervision of the department of telecommunications and energy or the division of insurance in so far as said person collects charges or bills only for such landlord or supervised corporations, shall directly or indirectly conduct a collection agency, or engage in the commonwealth in the business of collecting or receiving payment for others of any account, bill or other indebtedness, or engage in the commonwealth in soliciting the right to collect or receive payment for another of any account, bill or other indebtedness, or advertise for or solicit in print the right to collect or receive payment for another of any account, bill or other indebtedness, without first obtaining from the commissioner of banks a license to carry on said business, nor unless such person or the person for whom he or it may be acting as agent has on file with the state treasurer a good and sufficient bond. The commissioner may from time to time establish such regulations pertaining to the conduct of the business as he may deem necessary.

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