Montana Division of Banking Requires Consumer Loan License For Collections

The Montana Division of Banking and Financial Institutions has issued the following opinion:

"It is the opinion of the Division that the provisions of the Act continue to apply to an entity that acts as a servicer by receiving or accepting payments due pursuant to a Montana Consumer Loan and either keeping those payments or directing them to another entity(s). It is the opinion of the Division that a servicer of Montana Consumer Loans must be licensed under the Act."

As defined in Mont. Code Ann. 32-5-102(2)(a), "'Consumer Loan' means credit offered or extended to an individual primarily for personal, family, or household purposes, including loans for personal, family, or household purposes that are not primarily secured by a mortgage, deed of trust, trust indenture, or other security interest in real estate."

Kelly M. O'Sullivan, Staff Attorney for the Montana Division of Banking and Financial Institutions, confirmed to Cornerstone Support that a debt collector of Montana Consumer Loans is a "servicer" and is subject to licensure.

For a complete copy of the memorandum from the Division, click Memorandum.

Should you have any questions or issues concerning this matter or should you wish to engage Cornerstone Support's assistance in obtaining specific licenses or registrations, contact a Cornerstone Support licensing consultant today at 888-445-8660 or e-mail us at info@cornerstonesupport.com.