1. Supervision of Foreign Entities
NACARA
October 12, 2016
Elizabeth Benotti, Chief Director, Massachusetts Division of Banks
Erin Berger, Regional Field Manager, Consumer Financial Protection Bureau
Brian Ellis, Attorney at Law, The Ellis Law Firm, LLC

2. Agenda Introduction Overview Legal Licensing Examination
Questions/Wrap-up
Contact Information

3. Legislative Background
Fair Debt Collection Practices Act (FDCPA) 15 U.S.C. §§ 1601, p.
The “Floor”
No federal collection agency/debt collector licensing requirements
U.S. States/Municipalities
Additional regulation through licensing, registration and/or bonding

4. The Debt Collector An Unpopular, but Necessary Actor
Why Foreign Entities as Debt Collectors?

5. PRE-APPLICATION CONSIDERATIONS

6. PREPARATION OF APPLICATION
Notarization
Apostille - An "apostille" is a form of authentication issued to documents for use in countries that participate in the Hague Convention of 1961.
Timeliness
Participation
U.S. Embassy Notarization
Similarity of Form and Function 22 C.F.R. § 92.2.
Acceptability
New Jersey Surety Bond Registration

7. CULTURAL ISSUES WITH FOREIGN ENTITIES
Credit Reports
The Lessons of CIBIL
Proving Financial Responsibility
Cash-Based vs. Credit-Based Economies
Sharing to Resolve a Common Problem
U.S. Social Security Numbers
NMLS Unique Identifier Number
Republic of India - PAN

8. FINDING SOLUTIONS Theme of Presentation – Cooperation
Finding Solutions as New Issues Arise
Fingerprinting via NMLS
Electronic Surety Bonds

9. State Licensing of Foreign Entities
Submitting Application
NMLS
Requirements (M.G.L. Chapter 93 Section CMR 18.00)
Financials Statements (must be positive)
Business Plan
Control Persons
Electronic Surety Bonds (new)
CBC (new)
Review Process
IRTTC
Approval Process
Management Approval

10. Renewals NMLS Financials CBC (FBI Fingerprints)
Automated Renewals
Financials
Positive Net worth
Memorandum of Understanding
CBC (FBI Fingerprints)
Required for all renewals
Electronic Surety Bonds

11. Massachusetts Debt Collector Entities
Companies – 409
25 international companies (6%)
Branches – 317
32 international branches (10%)
Countries
India
Philippines
Mexico
Jamaica
Guatemala
Panama

12. Examination of Foreign Entities
Approach for Regulators to Monitor and Examine
Due Diligence of the Institution – Branch vs. Vendor
Review Location
International Logistics

13. Wrap-up

14. Contact Information
Elizabeth (Liz) Benotti
Erin Berger
(202)
Brian Ellis