|
Debt Laws | Federal
Laws | Consumer Protection
State Laws
Massachusetts Regulation of Credit Bureaus
Part 1 Administration of the Government
Title XV Regulation of Trade
Chapter 93 Regulation of Trade and Certain Enterprises
Regulation of Credit Bureaus
(a) A consumer reporting agency shall make all disclosures pursuant to section fifty-six without charge to the consumer if, within sixty days after receipt by such consumer of a notification pursuant to section sixty-two or notification from a debt collection agency affiliated with such consumer reporting agency stating that the consumer’s credit rating may be or has been adversely affected, the consumer makes a request under section fifty-six.
(b) Except as provided in paragraph (c), a consumer reporting agency shall not charge a consumer for any disclosures or a copy of a consumer report requested pursuant to section fifty-eight.
(c) Except as otherwise provided, the consumer reporting agency may impose a reasonable charge, not to exceed eight dollars: (1) for making disclosures to a consumer pursuant to section fifty-six, the charge for which shall be indicated to the consumer prior to making disclosure; and (2) for furnishing notifications, statements, or summaries, to a person pursuant to paragraph (g) of section fifty-eight, the charge for which shall be indicated to the consumer prior to furnishing such information.
(d) Each consumer reporting agency which compiles and maintains files on consumers on a nationwide basis shall furnish without charge to any consumer who has provided verification of his identity and who meets other requirements as set forth in section fifty-seven and who requests a copy of his consumer report, one complete consumer report per calendar year.
(e) Each consumer reporting agency which does not compile and maintain files on consumers on a nationwide basis shall furnish, for a charge not to exceed five dollars, to any consumer who has provided verification of his identity and who meets other requirements as set forth in section fifty-seven and who requests a copy of his consumer report, one complete consumer report per calendar year.
A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer’s ability to obtain employment shall at the time such public record information is reported to the user of such consumer report, notify the consumer of the fact that public record information is being reported by the consumer reporting agency, together with the name and address of the person to whom such information is being reported; or maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date. For purposes of this section, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported. Nothing contained in this section shall permit the use of public record information otherwise prohibited by section fifty-two.
A consumer reporting agency which furnishes a consumer report for employment purposes shall enter into an agreement with the user of such consumer report which provides that no consumer report may be requested by the user until and unless the user has provided written notice to the employee or prospective employee that a consumer report regarding the employee will be requested. For current employees, notification in an employee manual shall be sufficient for the purposes of this section.
Section 60A. A consumer reporting agency which compiles and reports items of information on consumers which are matters of public record, for the purpose of furnishing a consumer report, shall:
(a) Maintain reasonable procedures designed to insure that whenever public record information is reported, in a consumer report, it is complete and up to date to the extent practicable. It shall be deemed a reasonable procedure for a consumer reporting agency to accurately report the status of public record information as of the date recorded in its files provided that such information is updated on a regular basis.
(b) When conducting a reinvestigation as required by paragraph (a) of section fifty-eight, a consumer reporting agency shall promptly record and report the current status of the public record.
Nothing contained in this section shall permit the use of public record information otherwise prohibited under section fifty-two.
Whenever a consumer reporting agency prepares an investigative consumer report, no adverse information in the consumer report, other than information which is a matter of public record, may be included in a subsequent consumer report unless such adverse information has been verified in the process of making such subsequent consumer report, or the adverse information was received within the three-month period preceding the date the subsequent report is furnished.
(a) Whenever credit or insurance for personal, family or household purposes, or employment involving a consumer is denied or terminated or the charge for such credit or insurance is increased either wholly or partly or whenever a consumer’s line of credit is reduced, except when the consumer is delinquent with regard to such line of credit, because of information contained in a consumer report from a consumer reporting agency, the user of the consumer report shall, within ten business days of its decision to deny or terminate such credit, insurance or employment, or to increase the charge for such credit or insurance, or to reduce a consumer’s line of credit, except when the consumer is delinquent with regard to such line of credit, notify such consumer in writing against whom such adverse action has been taken. Said notice shall be in a clear and conspicuous format, no smaller than ten point type, and shall contain the name, address, and toll-free telephone number of any consumer reporting agency which provided any consumer report which was reviewed or otherwise taken into account in the making of such adverse action and shall inform the consumer of his rights in substantially the following manner:
“You have the right to obtain a free copy of your credit report within sixty days from the consumer credit reporting agency which has been identified on this notice. The consumer credit reporting agency must provide someone to help you interpret the information on your credit report. Each calendar year you are entitled to receive, upon request, one free consumer report.
You have the right to dispute inaccurate information by contacting the consumer credit reporting agency directly. If you have notified a consumer credit reporting agency in writing that you dispute the accuracy of information in your file, the agency must then, within thirty business days, reinvestigate and modify or remove inaccurate information. The consumer credit reporting agency may not charge a fee for this service.
If reinvestigation does not resolve the dispute to your satisfaction, you may send a statement to the consumer credit reporting agency, to be kept in your file, explaining why you think the record is inaccurate. The consumer credit reporting agency must include your statement about the disputed information in a report it issues about you”.
(b) Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of such information shall, within a reasonable period of time, upon the consumer’s written request for the reasons for such adverse action received within sixty days after learning of such adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the consumer.
(c) No person shall be held liable for any violation of this section if he proves by a preponderance of the evidence that at the time of the alleged violation he maintained reasonable procedures to assure compliance with the provisions of subsections (a) and (b).
Any consumer reporting agency, person who furnishes information to any consumer reporting agency, or user of information which willfully fails to comply with any requirement imposed under sections fifty to sixty-two, inclusive, with respect to any consumer shall be liable to that consumer in an amount equal to the sum of—
(1) any actual damages sustained by the consumer as a result of the failure;
(2) such amount of punitive damages as the court may allow; and
(3) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court.
Any consumer reporting agency, person who furnishes information to any consumer reporting agency, or user of information which is negligent in failing to comply with any requirement imposed under sections fifty to sixty-two, inclusive, with respect to any consumer shall be liable to that consumer in an amount equal to the sum of any actual damages sustained by the consumer as a result of the failure and together with, in the case of any successful action to enforce any liability under this section, the costs of the action and reasonable attorney’s fees as determined by the court. The remedies provided hereunder shall not be exclusive.
An action to enforce any liability created under sections fifty through sixty-four, inclusive, may be brought in any court of competent jurisdiction, within two years from the date on which the liability arises, except that where a defendant has materially and willfully misrepresented any information required to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant’s liability to that individual the action may be brought at any time within two years after discovery by the individual of the misrepresentation.
Any person who knowingly and willfully obtains information relative to a consumer from a consumer reporting agency under false pretenses shall be punished by a fine of not more than five thousand dollars or by imprisonment for not more than one year, or both.
Any person who is convicted of knowingly and willfully introducing, attempting to introduce or causing to be introduced, false information into a consumer reporting agency’s files for the purpose of damaging or enhancing the credit information of any individual shall be punished by a fine of not more than five thousand dollars or by imprisonment for not more than one year, or both.
Any officer or employee of a consumer reporting agency who knowingly and willfully provides information concerning an individual from the agency’s files to a person not authorized to receive that information shall be punished by a fine of not more than five thousand dollars or by imprisonment for not more than one year, or both.
Failure to comply with the provisions of sections fifty through sixty-seven shall constitute an unfair trade practice under the provisions of clause (a) of section two of chapter ninety-three A.
For the purposes of sections sixty-eight B to sixty-eight D, inclusive, the following words, unless the context requires otherwise, shall have the following meanings:—
“Buyer”, any individual who is solicited to purchase or who purchases the services of a credit services organization.
“Credit services organization”, any person who, with respect to the extension of credit by others, sells, provides, performs, or who represents to sell, provide or perform for the payment of money or other valuable consideration any of the following services: (i) improving a buyer’s credit record, history or rating; (ii) obtaining an extension of credit for a buyer; or (iii) providing advice or assistance to a buyer with respect to either clause (i) or (ii); provided, however, that such term shall not include (a) any person authorized to make loans or extensions of credit under the laws of the commonwealth or the United States, (b) a lender approved by the Secretary of Housing and Urban Development of the United States for participation in any mortgage insurance program under 12 USC 1701 et seq. (National Housing Act), (c) any bank whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, or any subsidiary of such bank, (d) any credit union authorized to do business in the commonwealth under state or federal law, (e) any nonprofit organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code, (f) any person licensed by the commonwealth as a real estate broker when acting within the scope of such license, (g) an attorney at law authorized to practice in the commonwealth when acting within the scope of such practice, (h) any broker-dealer registered with the Securities and Exchange Commission or the Commodities Futures Trading Commission of the United States when acting within the scope of such registration, or (i) any consumer reporting agency as defined in 15 USC 1681 et seq. (Fair Credit Reporting Act).
“Extension of credit”, credit extended to a buyer primarily for personal, family or household purposes including the right to defer payment of debt or to incur debt and defer its payment.
No credit services organization, its salespersons, agents or representatives, or any independent contractor who sells or attempts to sell the services of a credit services organization shall (1) charge or receive any money or other valuable consideration prior to full, complete and satisfactory performance of the services the credit services organization has agreed to perform for the buyer, unless such organization has obtained a surety bond in an amount not less than ten thousand dollars issued by a surety company authorized to do business in the commonwealth and has established a trust account at a federally insured bank or savings and loan association located in the commonwealth; (2) charge or receive any money or other valuable consideration solely for the referral of a buyer to a retail seller who will or may extend credit to the buyer if such extension of credit is upon substantially the same terms as those available to the general public; (3) make, or advise any buyer to make, any statement that is untrue or misleading, or that should be known by the exercise of reasonable care to be untrue or misleading, with respect to a buyer’s credit worthiness, credit standing or credit rating to a credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer has made application for an extension of credit; (4) make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice or course of business intended to defraud or deceive a buyer in connection with the offer or sale of such services.
Before the execution of a contract or other form of agreement between a buyer and a credit services organization or before the receipt by any such organization of money or other valuable consideration, whichever occurs first, such organization shall provide the buyer with a statement, in writing, containing the following:
(1) a complete and accurate statement of the buyer’s right to review any file on the buyer maintained by a consumer reporting agency, as provided under 15 USC 1681 et seq. (Fair Crediting Reporting Act);
(2) a statement that the buyer may review his consumer reporting agency file at no charge if a request therefor is made to such agency within thirty days after receipt by the buyer of notice that credit has been denied;
(3) if such request is not made within the allotted time, the approximate charge to the buyer for such review;
(4) a complete and accurate statement of the buyer’s right to dispute the completeness or accuracy of any item contained in any file on the buyer maintained by a consumer reporting agency;
(5) a complete and detailed description of the services to be performed by the credit services organization and the total cost to the buyer for such services;
(6) a statement asserting the buyer’s right to proceed against the surety bond or trust account required under section sixty-eight B; and
(7) the name and business address of any such surety company and of the depository of the trust account, together with the name of the trustee and the number of the account.
Each contract or other form of agreement between a buyer and a credit services organization for the purchase of the services of such organization shall be in writing, dated, signed by the parties, and include the following:
(a) a conspicuous statement in a minimum size of ten point bold face type, in immediate proximity to the space reserved for the buyer’s signature, which reads: You, the buyer, have the right to cancel this contract or agreement at any time prior to midnight of the third business day following the date thereon.
(b) a form, in duplicate and captioned “NOTICE OF CANCELLATION”, attached to the contract or agreement and containing, in a minimum size of ten point bold face type, the following:
NOTICE OF CANCELLATION.
You have the right to cancel this contract, or agreement, without any penalty or obligation until midnight of the third business day following the date on which such contract or agreement was signed.
If you cancel, any payment made by you will be returned within ten days following receipt of your cancellation notice.
To cancel this contract or agreement, mail or deliver a signed and dated copy of this notice of cancellation, or other similar written notice to
(credit services organization) at (business address)
____________________________ ___________________________
(date) (buyer's signature)
____________________________ ___________________________
(c) the terms and conditions of payment, including the total of all payments to be made by the buyer, whether to the credit services organization or to some other person;
(d) a full and detailed description of the services to be performed by the credit services organization for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated date by which the services to be performed will be completed or the estimated length of time for the completion of such performance; and
(e) the principal business address of the credit services organization and the name and address of its agent in the commonwealth authorized to accept service of process.
The credit services organization shall maintain on file for a period of two years an exact copy of such statement, personally signed by the buyer acknowledging receipt of a copy of the same.
The credit services organization shall provide the buyer with a copy of the total contract or agreement, together with copies of all other documents which the credit services organization requires the buyer to sign at the time they are signed.
Any violation of sections sixty-eight B to sixty-eight D, inclusive, shall constitute a violation of chapter ninety-three A.
(a) As used in this section the term “multi-level distribution company” shall mean any person, firm, corporation or other business entity which distributes for a valuable consideration, goods or services through independent agents, contractors or distributors, at different levels, wherein participants in the marketing program may recruit other participants, and wherein commissions, cross-commissions, bonuses, refunds, discounts, dividends or other considerations in the marketing program are or may be paid as a result of the sale of such goods and services or the recruitment, actions or performances of additional participants.
(b) Every multi-level distribution company shall provide in its contract of participation that such contract may be cancelled for any reason at any time by a participant upon notification in writing to the company of his election to cancel. If the participant has purchased products while the contract of participation was in effect, all unencumbered products in a resaleable condition then in the possession of the participant shall be repurchased. The repurchase shall be at a price of not less than ninety per cent of the original net cost to the participant returning such goods, taking into account any sales made by or through such participant prior to notification to the company of the election to cancel.
(c) No multi-level distribution company, nor any participant, shall require participants in its marketing program to purchase products or services or pay any other consideration in order to participate in the marketing program unless such products or services are in reasonable quantities and unless it agrees: (1) to repurchase all or part of any products which are unencumbered and in a resaleable condition at a price of not less than ninety per cent of the original net cost to the participant; (2) to repay not less than ninety per cent of the original net cost of any services purchased by the participant; or (3) to refund not less than ninety per cent of any other consideration paid by the participant in order to participate in the marketing program.
(d) No multi-level distribution company or participant in its marketing program shall: (1) operate or, directly or indirectly, participate in the operation of any multi-level marketing program wherein the financial gains to the participants are primarily dependent upon the continued, successive recruitment of other participants and where retail sales are not required as a condition precedent to realization of such financial gains; (2) offer to pay, pay or authorize the payment of any finder’s fee, bonus, refund, override, commission, cross-commission, dividend or other consideration to any participants in a multi-level marketing program solely for the solicitation or recruitment of other participants therein; (3) offer to pay, pay or authorize the payment of any finder’s fee, bonus, refund, override, commission, cross-commission, dividend or other consideration to any participants in a multi-level marketing program in connection with the sale of any product or service unless such participant performs a bona fide and essential supervisory, distributive, selling or soliciting function in the sale or delivery of such product or services to the ultimate consumer; or (4) offer to pay, pay or authorize the payment of any finder’s fee, bonus, refund, override, commission, cross-commission, dividend or other consideration to any participant where payment thereof is or would be dependent on the element of chance dominating over the skill or judgment of such participant, or where no amount of judgment or skill exercised by the participant has any appreciable effect upon any finder’s fee, bonus, refund, override, commission, cross-commission, dividend or other consideration which the participant may receive, or where the participant is without that degree of control over the operation of such plan as to enable him substantially to affect the amount of finder’s fee, bonus, refund, override, commission, cross-commission, dividend or other consideration which he may receive or be entitled to receive.
(e) Multi-level distribution companies shall not represent, directly or indirectly, that participants in a multi-level marketing program will earn or receive any stated gross or net amount, or represent in any manner, the past earnings of participants; provided, however, that a written or verbal description of the manner in which the marketing plan operates shall not, standing alone, constitute a representation of earnings, past or future. Multi-level distribution companies shall not represent, directly or indirectly, that additional distributors or sales personnel are easy to secure or retain, or that all or substantially all participants will succeed.
(f) Each multi-level distribution company numbering among its participants any resident of the commonwealth shall annually file with the attorney general a statement giving notice of this fact and designating the state secretary its agent for service of process for any alleged violation of this section.
(g) Any violation of the provisions of this section shall constitute an unlawful method, act or practice within the meaning of clause (a) of section two of chapter ninety-three A.
Section 70. In connection with the granting of any loan or credit to be secured by a purchase money first mortgage on real estate improved with a dwelling designed to be occupied by not more than four families and occupied or to be occupied in whole or in part by the mortgagor, an attorney acting for or on behalf of the mortgagee shall render a certification of title to the mortgaged premises to the mortgagor and to the mortgagee.
For the purposes of this section, said certification shall include a title examination which covers a period of at least fifty years with the earliest instrument being a warranty or quitclaim deed which on its face does not suggest a defect in said title; provided, however, that in the case of registered land, it shall be sufficient to start the said examination with the present owner’s certificate of title issued by the land court, except that bankruptcy indices and federal and state liens shall be examined. The term record title, as used herein, shall mean the records of the registry of deeds or registry district in which the mortgaged premises lie and relevant records of registries of probate.
The certification shall include a statement that at the time of recording the said mortgage, the mortgagor holds good and sufficient record title to the mortgaged premises free from all encumbrances, and shall enumerate exceptions thereto. The certification shall further include a statement that the mortgagee holds a good and sufficient record first mortgage to the property, subject only to the matters excepted by said certification.
The liability of any attorney rendering such certification shall be limited to the amount of the consideration shown on the deed with respect to the mortgagor, and shall be limited to the original principal amount secured by the mortgage with respect to the mortgagee. Said certification shall be effective for the benefit of the mortgagor so long as said mortgagor has title to the mortgaged premises, and shall be effective for the benefit of the mortgagee so long as the original debt secured by the mortgage remains unpaid.
Willful failure by an attorney to render a certification to the mortgagor as required by the provisions of this section shall constitute an unfair or deceptive act or practice under the provisions of chapter ninety-three A.
MA Massachusetts Official State Code
 Back to Debt Related Laws
|
