Collecting debt in Massachusetts: licensing, bonds and statutes of limitations.

Fixed $25,000; not tiered. Runs to the State Treasurer for an indeterminate period, surety company or cash in lieu; must be examined and approved by the Commissioner of Banks and approved and filed by the State Treasurer (§ 26); cancellable on 30 days' registered-mail notice. Conditioned on paying over collection proceeds on written demand. 209 CMR 18.50(2)(a)1 (2025 text): the Commissioner 'may require a debt collector to furnish a bond, in addition to the $25,000 bond that is required pursuant to M.G.L. c. 93, §§ 24A, 25 and 26, in a sum as determined by the Commissioner. The bond shall run to the state treasurer and be executed by the licensee and by a surety company licensed by the Massachusetts Division of Insurance.' Whether the bond is filed as an NMLS electronic surety bond or on paper with the State Treasurer was not verified from a primary source.

c. 93 § 24B(c): 'The commissioner may participate in a multi-state licensing system ... for the licensing and application ... of entities engaged in the business of debt collection' and 'The applicant shall pay directly to the multi-state licensing system any additional fees'. DOB page: 'Get started using Nationwide Multi-State Licensing System (NMLS)'; all applications submitted through NMLS. 209 CMR 18.02 (2025) adds an 'NMLS' definition. Division consumer page directs users to verify licenses through NMLS.

Two fees are due with a new application: the annual license fee of $1,000 and a $300 investigation fee ($1,300 total), plus NMLS processing fees and per-person FBI/credit-report charges. DOB fee table (mass.gov, read from the 2026-05-19 Wayback copy of the official page): 'license fee (debt collector, student loan servicers) $1,000 per license'; 'Investigation fee (debt collector and loan servicer) $300 per license'; 'FBI criminal background check (debt collectors and student loan servicers) $36.25 per owner(s) and control person(s)'; 'Credit report fee (debt collector and loan servicer) $15 per control person(s)'; 'All fees collected through the NMLS are nonrefundable.' Amounts are set under c. 7 § 3B in 801 CMR 4.02 (209 Division of Banks: '(5) Debt Collector - Annual License $1,000 per year'; '(12) Non-bank License Application - Investigation Fee 300'), confirmed on the LII copy 2026-09-20. M.G.L. c. 93, § 24B(a): application 'shall be accompanied by an investigation fee to be determined annually by the commissioner of administration under section 3B of chapter 7'; § 24B(b): 'The fee for the license shall be determined annually by the commissioner of administration'; § 24B(c): NMLS fees paid directly to NMLS. A separate license and fee is required for each place of business (§ 24B(a)).

annual

c. 93 § 24B(a): 'If the licensee desires to carry on business in more than one place, he shall procure a license for each place where the business is to be conducted.' 209 CMR 18.60(1): 'A debt collector licensee who intends to carry on its business at any location in addition to the address on its original license shall submit an application to the Commissioner, in writing, at least 30 days prior to the opening of the branch location.' Relocation requires prior approval and a relocation investigation fee: 801 CMR 4.02 '(13) Non-bank Licensee - Office Relocation Investigation Fee 200'. THIRD PARTY LOAN SERVICER registration (c. 93 § 24A(b), § 24C): 801 CMR 4.02 '(11) Third Party Loan Servicer Registration 500 per year' plus $120 NMLS processing fee (DOB page); registrants are not subject to §§ 24F-27 (no bond). Student loan servicers licensed under c. 93L acting solely as such need neither (§ 24A(e)).

NMLS Company Form (MU1) and Individual Form (MU2) filings; paper applications no longer accepted (DOB page: 'All Debt Collector or Loan Servicer license applications are submitted online using the NMLS with any supporting documents being mailed to the Division'); positive net worth demonstrated and maintained at all times (209 CMR 18.50(2)(a)); 'Net Worth' excludes goodwill, receivables from officers, organization costs and other intangibles (209 CMR 18.02); financial statements per U.S. GAAP (balance sheet, income statement, cash flows, stockholder's equity) audited by an independent CPA, or reviewed by a CPA if no audit; start-ups file an audited or reviewed opening balance sheet (209 CMR 18.50(2)(b)); fingerprint-based state and FBI criminal history checks for the applicant and each member, director, principal officer and office manager (c. 93 § 24B(c)); FBI fee $36.25 and credit report $15 per control person (DOB page); character, reputation, integrity and general fitness review; denial for felony or fraud within 10 years, prior license revocations, adverse credit history, going-concern audit notes (c. 93 § 24G; 209 CMR 18.52); license for each place of business; prior approval and $200 fee for relocation; 30-day advance branch application (c. 93 § 24B; 209 CMR 18.60); business conducted in the licensee's name as it appears on the license; license not transferable or assignable (c. 93 § 24B(b)); annual report to the Commissioner, $5 per day penalty for late filing (c. 93 § 24E; 209 CMR 18.62; DOB annual report due March 31); books and records retained at least three years in a form the Commissioner prescribes; out-of-state licensees with no Massachusetts office may designate an approved resident agent for records (c. 93 § 24D; 209 CMR 18.63); notice of significant events and proposed change in ownership or personnel (209 CMR 18.61); accounting and remittance of proceeds within 30 days of written demand (c. 93 § 28); incomplete applications: 14-day cure window before abandonment (209 CMR 18.50(2)(e)); conduct rules including time-barred debt limits (209 CMR 18.26), validation (18.34), disputes and original-creditor information (18.38), and Massachusetts-specific communication limits (18.06 through 18.30)