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S 750

Requires electronic benefit transfer systems to allow for benefit recipients to provide certain services when fraud has been suspected or reported

2025 Regular Session Introduced by Simcha Felder and 1 co-sponsor

The act strengthens the Division of Banks’ enforcement with civil penalties up to $5,000 per violation, administrative prohibitions up to 36 months, and enhanced investigations for

SIGNED CHAP.76
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Bill Summary · S 750

Summary — S.750 (Massachusetts, 194th General Court)

An Act establishing uniform enforcement and confidentiality provisions relative to certain licensees under the jurisdiction of the Division of Banks. (Sen. Paul R. Feeney)
Status: Signed into law (Chapter 76) — Feb 14, 2025

Note: The bill text provided focuses on enforcement authorities for the Division of Banks over certain licensees and registrants (debt collectors and third‑party loan servicers). The alternate title about electronic benefit transfer systems appears inconsistent with the text shared; this summary is based on the legislative text excerpt.

Purpose / Intent

To create uniform enforcement powers, civil and criminal penalties, and administrative prohibition procedures for licensees and registrants under chapter 93 (Division of Banks jurisdiction), especially those engaged in debt collection and third‑party loan servicing. The act expands investigatory authority, codifies monetary penalties, and authorizes exclusion orders barring individuals from participation in licensed activities.

Key provisions

  • Terminology change: expands references from “licensee” to include “registrant” in section 24D of chapter 93.
  • Replaces section 24F with a strengthened investigatory provision:
    • The Commissioner (and designated examiners/assistants) may summon licensees/registrants, agents, employees and witnesses; require production of books and papers; and administer oaths.
    • Willful failure to appear, testify, or produce documents (without justifiable cause), or obstructing examinations, is a criminal offense punishable by up to $1,000 fine and/or up to 6 months imprisonment. Each day is a separate offense.
  • Adds new sections 24L and 24M:
    • Section 24L: Civil monetary penalties — Commissioner may order penalties up to $5,000 per violation, up to $100,000 total, plus costs of investigation. Penalties may be imposed on licensees, exempt persons under §24A, and non‑licensees where applicable.
    • Section 24M: Administrative prohibition orders — Commissioner may issue written notices seeking to:
    • Prohibit a person from serving as a principal employee for a licensee for a necessary period;
    • Bar a person from applying for or obtaining a license for up to 36 months following an order; and/or
    • Prohibit further participation in debt‑collection or loan‑servicing businesses (including employment, agency, or operation on behalf of a licensee).
    • Procedures: Notice must state facts and offer a hearing. Hearing deadline: within 30 days after request; failure to request a hearing within 20 days is deemed consent. Orders effective upon service and remain in effect until modified or set aside. Orders may extend to participation in other license‑required businesses and banks (including subsidiaries).
  • Preservation of private rights: Section 24L explicitly preserves individuals’ rights to pursue damages or restitution in court.
  • Administrative review: Findings/orders subject to review under chapter 30A (standard administrative appeal).

Who is affected

  • Primary: licensees and registrants under chapter 93 (including debt collectors and third‑party loan servicers), and their principals, employees, agents.
  • Secondary: businesses requiring licenses from the Commissioner (and banks/subsidiaries) when an individual is subject to prohibition orders.
  • Consumers: indirectly affected through potential improvements in enforcement, compliance, and deterrence of unlawful conduct.

Procedural / timeline notes

  • Bill introduced Jan 17, 2025 (Senate docket); passed both chambers and delivered to governor; signed into law as Chapter 76 on Feb 14, 2025.
  • Administrative orders and penalties under the new sections are subject to standard administrative processes and judicial review (chapter 30A).

Potential impact / considerations

  • Strengthens Division of Banks’ enforcement toolkit — faster administrative remedies, meaningful monetary penalties, and criminal sanction for obstruction.
  • May increase regulatory compliance costs for affected businesses and risk employment bans for individuals found in violation.
  • Retains private right of action for injured parties.
  • The excerpt does not include full confidentiality provisions referenced in the bill title; any confidentiality rules or changes are not shown in the provided text.

Compiled from official sources — confirm details with the bill’s official record.

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